E85 Ripoff!!!

[Dave S]

OK - I live in part of the E85 capital of the world.(Minneapolis) Yesterday our Gas went up -(like all of you I'm sure) to $2.79 a gallon. E85 went up to $2.39 right along with it. What's this all about? I didn't think that E85 had much in common with gasoline other than the 15% petro that's in it? It went up a lot more than 15%!



It seems to me that the gas stations are taking advantage of the rising petro rates and making some extra profits on the E85. :angry: Why bother with a FFV when you don't save anything by burning Ethanol?



Am I wrong here?

 

[Jim Johnson]

I thought E85 was 85% gasoline, 15% ethanol. If so, the price increase is probably due to the increased price of the gasoline in the mixture.

 

[mike oyler]

Jim, it's the other way around. E85 = ethanol 85% x 15% gasoline.



Mike 0

 

[Todd Cloutier]

E85 is 85% ethanol. Chalk the price increase up to a free market economy. The refiners, wholesalers, and gas stations will charge as much for the product as the market will bear. Until demand drops, prices will continue to go up. Although I imagine the gas stations themselves are getting squeezed a bit with the price increases. I don't think their margin on gasoline is very large.

 

[Heather Kudela]

All gas is a rip off these days...:angry:

 

[Dan Otto]

I'm talking out my butt without facts in hand but my understanding is this- E85 is a government funded alterative that, as far as any research has told me, is as expensive or more expensive than reg. dino juice. when the government incentives to use it are gone, it will cease to be a viable alternative. Corrections or input?

 

[Todd Cloutier]

Dan - that's about right. Ethanol has been more expensive per gallon than gasoline (although that may be changing now) and is subsidised by the federal gov't to keep the cost to the consumer down. If an effort was made to increase the production capacity for ethanol, the price would come down. But there really hasn't been any incentive for that.

 

[Dan Otto]

Just did a search for E85 locations in and around MA. Nuttin in the whole state. Another reason to hate my state. :angry:

 

[Dave S]

Good comments.

IMHO if enough vehicles would be fitted to burn E85 there would be more of an incentive to manufacture more of the stuff and make the delivery process more efficient giving a true alternative to regular gas. I agree if the gas stations keep increasing the E85 prices right along with gas there will be little incentive to get people to demand it and companies to manufacture it. Ford has the right idea by making FFV's. I'm buying it just to encourage the manufacture of it as an additional fuel source. I always ask the stations how much they sell of it and they all answer - "A ton of it".



There are quite a few stations that carry the stuff in Minnesota. The State of Minnesota subsidizes the stuff and doesn't tax it as much. Therefore there is no reason for it to be going up as fast as regular gas. I suspect the gas stations are making a higher profit on it to make up for their lower margins on Gasoline.



Even so - it is consistently .30-.40 cents per gallon cheaper than 87 regular octane gas. That puts it at about the same price considering your fuel economy is 18% less.

 

[Dave S]