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dan45mcc

Albany Campus Mobil 32% spread

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I'm pretty sure that the tariff can be bypassed easily. I think 7% of U.S. capacity can be imported duty free directly from Brazil and the rest can be dewatered in Central America and qualify as duty free. When I hear the directors on the LLC's I'm in complaining, I'm going to tell them about how they have down nothing to promote blender pumps and at least 20% here in the midwest.

Marty

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Cash price for ethanol, today, was $1.52.  The blender's credit brings it down to, what, $1.01?  Add in a dime for shipping, and ($0.55?) tax, and you've got $0.33 to play with?  A bit thin, but doable, right?

 

BTW, The American Lemans Series is, evidently, going to run on E85 next year.  Does anyone know how to find out how their mileage was this year on e10, compared to what they ran on last year?

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rufus- they do not have 33 cents to play with. You have to take the 1.52+0.10 rail freight ethanol- .51 = 1.11 x % blend of say .8 = 0.888

                                                                                                                              + % gasoline, say 20% thus .2 x2.30 = 0.46

                                                                                                                                 -----------------------------------------

                                                                                                                                                                                = 1.348

                                                                                                                                           + state/fed tax (estimated)     .513

                                                                                                                                           + estimated truck freight         .03

                                                                                                                                  -----------------------------------------                               

                                                                                                                                                                                 = 1.891

 

This cost would vary greatly for several reasons; actual state taxes, freight costs, wholesaler margins (if there is one), gasoline price blended in (2.30 above is one day rack), and the fact that the 1.52 is a spot price based on a given period of time for very large trade deals. This aside- you can see how 1.999 could be possible though the above station would not be making enough to survive at 1.999. To pay fixed and variable costs he would likely need about 2.069 minimum- perhaps a little more if he wants to put something aside for expansion.

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