If E85 is 15% gasoline...

[Jay 02 TA ws6]

... can anyone explain why, after the $.50 increase in gasoline prices, the price of E85 remained exactly $.10 below economy grade gasoline????

Two weeks ago, economy grade gasoline was $2.39 and E85 was $2.29.

Now, economy gasoline is $2.89 and E85 is $2.79...

Hmmm...

15% of a $.50 increase is about 8 cents.

"E85 is the answer" my butt.

[Joe K. 99 Zeee!!]

Well, with MTBE additive out of the picture, Ethanol is taking up the slack. It seems it's going into all gasoline. If this caused a shortage of Ethanol as well, then that might account for at least some of the increase as well. As for what's left over, I think we can chalk that up to supply and demand. It isn't just the price of crude driving this, it's fear of shortages. It's a reason to raise prices to help curb demand. But in the short term, demand won't decrease that much. End result is big profits for a lot of gas producers.

IMO, ethanol isn't so much an answer to pricing as it is to future gasoline shortages. The only reason it's cheaper at all is subsidies. Maybe with wider scale production and technology improvements it'll get better....time will tell.

[Kevin - Blown 95 TA]

Your only hope is to invest in fuel. If ethanol takes over as the fuel mainstay, they will find a way to make it expensive. Greed runs the world, brother.

[Joe K. 99 Zeee!!]

Your only hope is to invest in fuel.

Funny you should mention that...Bill Gates just sunk a fair amount of cash into an Ethonal Company. The story is probably on CNN.com.

[2Fbodcru]

Funny you should mention that...Bill Gates just sunk a fair amount of cash into an Ethonal Company. The story is probably on CNN.com.

He bought $84,000,000.00 dollars worth of Pacific Ethanol Gates back when it was cheap. My 17 year old (now 18) son bought some of that stock about 7 weeks ago at $17.40 per share, and the price of the stock has been hovering around the $34 - $35 dollar mark for about a week now. I keep kicking myself for not buying some of it as well. It was selling for $33.30 a few minutes ago PEIX. It rose to it's highest mark yesterday after Bush's speech on the high gas prices, new energy sources, etc. He mentioned the word "ethanol" about 25 times or so, and a little while later, the stock rose to it's highest price so far. He also said that for a small price, any stardard gasoline burning automobile can be converted to use E-85. So what are these modifications - hotter spark plugs, anti corrosive fuel lines?? and what would the average cost be???

[wolfdogs]

its a supply issue. e85 cant be stored in the same tanks as gasoline was... it desolves all the residue in the tank and pollutes the fuel.. right now... production is way down while more storage is being made available.....

[Kevin - Blown 95 TA]

its a supply issue. e85 cant be stored in the same tanks as gasoline was... it desolves all the residue in the tank and pollutes the fuel.. right now... production is way down while more storage is being made available.....

It's always something. There's always a reason. There will always BE a reason. And there's also the little fact that the big 5 posted 1st quarter earnings of over $20 billion.

[wolfdogs]

It's always something. There's always a reason. There will always BE a reason. And there's also the little fact that the big 5 posted 1st quarter earnings of over $20 billion.

i agree..oh yes... i do agree