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dan45mcc

Price Spread wider now than Last summer June

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The Price Spread is wider now 14% than it was June last year 13.4% when Oil and Ethanol were running up the price of Corn trying to cash in on the VEETC (blenders credit) before it was to expire Dec

 

 

 

 

Think about that..last summer when we had the 38.5 cents Blenders Credit..the price spread was LOWER than it is now withOUT the 38.5 cents  http://e85prices.com/

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It will be nice when we can switch out of winter blend, and the amount of expensive gas in our fuel is cut in half (30% gas in winter blend to 15% gas in summer blend)... that with the seasonal spike in the price of gas over the summer... should make for really nice spreads on e85!

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my thoughts exactly.  I'd like to see a whole flood of e85 stations going on line this summer...  there have been a few non-branded stations around here over the years that have discontinued premium unleaded (very high priced, and very low volume) and replaced it with e85.  Though not the volume of regular or super unleaded... most sell WAY more of e85 then they did premium.  They are replacing the most expensive fuel at the pumps with the least expensive...

 

I wonder if an enterprising individual with a CDL and the proper equipment could do a business doing as James says...  fill up at local ethanol plants (blending from there for e85) delivering to a network of well priced e85 stations across a 30-50 mile radius from the plant...

 

Maybe even work out a deal with the owners to "lease the tank" and price it yourself...  Offer them "increased in-store revenue" in return for the use of their underground tank/pump/billing service...

 

"Let me take your most under-performing product (premium unl) and replace it with a product that will be priced to bring in customers who will purchase more from inside your store..."  sort of a cooperative marketing program...

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It would be nice if the ethanol industry, being hit by a glut of fuel and low prices... would encourage this sort of entrepreneurial work...

 

They could set up a top notch business plan for individuals to fill in their blanks and present to banks or private capital to invest in... of decide if they want to risk their own capital...  I'd think with tight margins across the board, that a few "jobbers" out there could diversify and use much of their same equipment, but get more use out of it....

 

No, the ethanol industry seems to be singularly focused on unit trains of gasoline additive to be shipped cross country.... :(

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again this last week, gas has fallen 5-6 cents, but jumped up 9...  Regular unleaded $3.85, super unleaded (e10) $3.95-$3.97...

 

Will stop to see what e85 prices are at.  They had gone up last week to $2.99 pretty much across the board with the good priced stations...  If they hold at that, the nearly $1 difference... will be very nice on the spread! ;D

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