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cessna

part of an article from NEVC website

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This is part of what Bill Northey wrote. He is Iowa's Sec of Ag.

 

While this savings is clearly significant, there is growing evidence that customers should be paying even less when they choose to fill up with E85.

 

The amount of savings is important. When burning E85 in a flex-fuel vehicle, drivers will typically see a 10 ? 25 percent decrease in fuel economy. At the current discount, E85 is already often a better deal; but, if the savings were larger, demand would increase for both additional E85 pumps and new flex fuel vehicles.

 

So it?s critical that the price of E85 at the pump reflect the true cost of the fuel, not an artificially inflated price which only enriches either the blender, who mixes the ethanol and gasoline, or retailer.

 

Some recent numbers seem to show that this artificial inflation of the price of E85 is in fact happening.

 

When the wholesale price of ethanol, which is less than gasoline, is combined with the 51 cent federal tax credit blenders receive and the 25 cent state retailers? tax credit, the ?real? wholesale price spread between regular unleaded (E0) and E85 is more than a dollar per gallon. This shows that the 50 cent or so spread now seen at the pump isn?t justified by the costs and says to me that consumers are paying more for E85 than they should.

 

This means someone in the supply chain, either the blender or retailer, has been making an additional 50 cents or more per gallon on the E85 they sell.

 

Part of the problem is a lack of competition. With just 70 stations statewide offering E85, retailers aren?t risking driving customers across the street. Often the closest competition is a county or more away.

 

The state legislature acted this past session to create a program to offer assistance to gas stations that install pumps to dispense E85. As a result, some new pumps are coming into service and there is beginning to be a little bit more competition.

 

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Now add .50 a gallon to that inflated price and you have what we pay in Texas for E85.  The difference here is manipulated by the fact that no matter what the price of E10, E85 is .30 per gallon lower.

 

Today for example, Kroger in Sachse, TX is 2.89 for E10 and 2.59 for E85. Kroger in Plano is near the same at 2.85 and 2.55 respectively.

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Now add .50 a gallon to that inflated price and you have what we pay in Texas for E85.  The difference here is manipulated by the fact that no matter what the price of E10, E85 is .30 per gallon lower.

 

Today for example, Kroger in Sachse, TX is 2.89 for E10 and 2.59 for E85. Kroger in Plano is near the same at 2.85 and 2.55 respectively.

 

Kroger is terrible about pricing..

 

Tonight Gas went up to $3.09 at the Speedstops in town and E85 was at $2.79 ! There are 2 Speedstop Stations selling E85 and they have the most pumps in town.. around 20 pumps of E85 ..I dont know how they can do it (be priced so high) when the 3 other stations are selling E85 at 60 cents less a gallon.

 

The only thing I can figure out is the Speedstop station may have landed a fleet ..government maybe that is required to use E85 ..and can keep the price high because thye have acontract /

 

Must be because in the Free Market I cant see how anyone is buying E85 from them when they have 3 other Stations selling far less per gallon

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