Ethanol Prices Remain Stable
As gas prices retreat slightly from their record levels, the price of E85 (85% ethanol, 15% gasoline) remains stable. This is good news for consumers whose vehicles are flex fuel capable. Indeed, a look at recent prices shows that the average price for E85 is $2.45 per gallon while 87 octane gasoline costs an average of $2.85 a gallon.
E85 Is Less Efficient Than Straight Gasoline
The 40 cent per gallon difference sounds great, but you must consider that a flex fuel vehicle loses up to 25% of its range when filled with the ethanol blend. Therefore, for some vehicles a price of $2.13 per gallon is the break even point when using E85 at the current average gas price.
Bargains In The Upper Midwest
The price differential between E85 and regular gas is most favorable in the Upper Midwest and in Colorado, areas where corn is plentiful. Indeed, a $1 per gallon differential at one Denver station makes using E85 a wise choice.
Other Grain Choices Need To Be Employed
Because the demand on corn is so great, prices for this grain which is used to produce E85 is at record highs. Until other products are used (switch grass for one) then the value of using E85 will only be realized when gasoline prices are high which typically occurs during the peak summer driving months.
Clean. Renewable. 105 Octane. Made In The USA.
Marketers for E85 are pushing the above slogan to remind people why they think E85 is a good choice no matter what gasoline prices are. Although I fully concur with this slogan, until other grains and products are used to make E85, the high price of corn will keep the price of ethanol blend up. Inasmuch as many consumers want to cut our country’s dependency on foreign fuel and help the environment, price does matter.
An immediate setting aside of state and federal taxes on the fuel would help, but an alternate and cheaper source for making E85 is something that must become a priority.
Comments
2 Comments on Ethanol Prices Remain Stable
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Car Problems on
Fri, 13th Jul 2007 10:36 am
Even if it at the moment isn’t as effective as ordinary gasoline, I believe that it’ll be better and better further on. Just imagine your future car smelling like french fries 
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