LC Biofuels jots a note on biodiesel price increases
LC Biofuels is trying to explain why its biodiesel is not getting any cheaper. According to the Biodiesel Blog, the company has sent out a letter that describes how the ever-increasing price of raw materials and diesel fuel seriously impact its biodiesel prices. The weak dollar - which makes it more lucrative for soybean producers to sell their product to China - also plays a role. Feedstock prices are set, mostly, by the Chicago Board of Trade, the letter says, and because soybean prices have tripled over the past year, the price that LC Biofuels has to sell a gallon of biodiesel for to make money has climbed to about $6.25. Other biodiesel plants have stopped production (see here), but LC Biofuels is going to keep on trying to make fuel for the time being. Prices will be higher, but when costs come down - if costs come down - the pump will reflect the drop.
[Source: Biodiesel Blog]
Reader Comments (Page 1 of 1)
why not the LS2LS7? 2:11PM (4/26/2008)
Easy on the China thing.
The Chinese RMB hasn't fallen much against the dollar. Basically, since it is semi-pegged (until recently it was pegged), as the dollar has fallen precipitously, the RMB has fallen quite a bit too.
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Kevin Nugent 11:04PM (4/26/2008)
Or how about these companies juts make a slight contract deal with all the fast food restaurants within 3 states and just use the oil that needs to be dealt with anyway and turn it into something good. Restaurants are mandated to send back their oil for processing and recycling so why not take the hassle for them cheaper and pick up the oil on a schedule free of charge or on a 5 dollar waiver. Seem simple enough?
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Blaine Decker 12:20AM (4/27/2008)
If feedstock prices are set by someone else, then why don't they set fuel prices so the oil companies can't claim 50 billion in profit for the year.
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