Ethanol backers, have no fear, prices are on the rebound
While we spent a lot of late 2007 talking about the very real ethanol glut that was happening in America, the good news for people who have a lot invested in the biofuel (farmers, for one) is that prices have been on the upswing since mid-November. According to an article in the Wichita Eagle, the rebound is taking the form of a 35-cent-per gallon increase and is "within 10 cents of the wholesale price of unleaded gasoline." There is still plenty of ethanol available, but with fewer plants being built (and those that are are not being completed on schedule), prices are increasing. Once the distribution system is improved - and more people realize they can fill their flexfuel cars with ethanol - the glut will likely disappear and the supply and demand will be back in balance.
[Source: Kansas.com via Domestic Fuel]
Reader Comments (Page 1 of 1)
GreyFlcn 1:18PM (1/18/2008)
=="more people realize they can fill their flexfuel cars with ethanol"==
Heh, now thats just delusional.
http://greyfalcon.net/e85stations2.png
http://greyfalcon.net/e85stations.png
Reply
Karkus 2:06PM (1/18/2008)
OR should the backers fear the rebound ? As soon as prices go above unleaded, all those places that don't require E10 will go back to straight gasoline. Right now it's only the price (due in part to subsidies) that makes it so attractive.
And as the poster above mentioned, it's E10 that accounts for the vast majority of the volume. Those E85 users are a drop in the bucket.
Reply
gsolman6 8:06PM (1/18/2008)
In reality Ethanol has always been more expensive than gasoline its just most consumers don't realize that their tax money is being use to subsidize it to the tune of $0.51/gallon.
Reply