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HuskerFlex

87 octane e10 to Nebraska next month...

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With e0 going to 84 octane sept15 in NE... And e0 req blending with premium... How much more will THAT cost?

 

Could you see stations drop e0. (Too expensive for volume sales) and put e85 in instead?

 

Would "branding" contracts prevent that?  What about independents?

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With e0 going to 84 octane sept15 in NE... And e0 req blending with premium... How much more will THAT cost?

 

Could you see stations drop e0. (Too expensive for volume sales) and put e85 in instead?

 

Would "branding" contracts prevent that?  What about independents?

 

Yes-E10 is a much better value than E0 87 made with suboctane and premium. Within 6 months less than 5% of stations will carry E0 87 but likely that 50% of the premium will remain E0- especially if near a resort area with recreational boaters. Unfortunately this more price attractive E10 will narrow the gap a bit to E85 (price to price but not necessarily in value).

 

You will NOT see hardly any stations come up with a free tank for E85 from this (few have an E0, E10, midgrade, and premium tank- most just have 3 or a 87 octane tank and a premium tank with blenders to make midgrade). You also have agreements in the way requiring the station to sell ALL the major brand grades. You will see folks that put in a blender pump to pick up the blend economics from cheap alcohol and RINS struggle more since now this benefit goes to the terminal blender and may only pass to the retailer when so much competition exists they have to give up this extra margin to remain competitive. Independents will still blend for RINS and value but remember the first 10% alcohol (the lions share) will now be done at the terminal.

 

Basically I do not see this as a favorable turn of events- It was not when it came to pass in WI.

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I had a conversation with an attendant (the one with no e85 that I get my morning caffeine from), and pointed out that they were going to have to change all their octane signs in 2 weeks...  they were clueless (well, I think that these folks were pretty clueless on MULTIPLE subjects...)  when I told them about the dropping of the base fuel from 87 to 84...  the "manager" said "yah, with all those ethanol subsidies that they are talking about reducing, the ethanol people have to find a way to get their money somehow"...

 

WOW...  so many layers of ignorance/stupidity/gullibility...  WHERE do you start.  There was a line behind me, and I was late for work so I just rolled my eyes and went about my day.  (coward that I am)

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