Why does E85 run as much or more then Gasoline ?

Question

E85 was a true pricing alternative to gasoline 2 years ago , you could buy E85 foras muchas $1 less a gallon . The reason has nothing to do with increased demand , but everything to do with the the Ethanol Industry and Oil coming togetherand the collusive agreements to keep ethanol at the same price as Gasoline.
This revelation comes directly from the Renewable Fuels Association . Check out : www.ethanollrfa .org/industry/statistics/

correction on website source :www.ethanolrfa.org/industry/statics/ . You won't question once you read it .

Answer 1

you all expressed some valid points,another thought, when the gas company's really started using the dreaded gas additive MTBE, in 1992, by a act of our congress, well guess what! it was a very bad mistake, the additive has ruined many underground aquifers, and they started to weasel it out of production in 2003-2005 the replacement for it was Ethanol! the oil company's are using a great amount of it now to replace the MTBE additive.it does make you think about it! i think it would be good for some folks in congress and senate to take a look at it.and answer your question. because two years ago it was $1.35 less in my area, now it is about the same price as regular unleaded, no bargain there, when you lose 25% or more in mileage with e85!, ive talked about this 4 months ago, when i noticed the price climbing! i am with you , i would like a answer from Washington DC!

Answer 2

What ever the market will pay. Buy low, sell high. The great American way of business. Do you expect the market to work differently just because you want it to? Right now ethanol is in demand so the price is high. 2 years ago, most people had never heard of E85, so not much of a market and low prices. If you were selling ethanol, you would sell it for as much money as you could get, too. Don't try to deny it, you would. If hydrogen or battery power takes off in the next few years, ethanol and gas prices will fall and hydrogen and electricity prices will go through the roof. That's how it works.

Answer 3

I disagree. The situation with E85 IS a supply and demand issue. First of all the oxygenate of choice is ethanol, it's cheap, it's plentiful, and it increases octane while reducing ozone pollution. Secondly the same people who are supplying ethanol to the oil companies as an additive are the same folks who make your E85. There simply isn't enough to go around.
Hopefully in time this will change as new technologies for making ethanol easier and cheaper come into play.
From what I understand there is new interest in cellulose ethanol--that is ethanol made from just about any kind of plant, even the weeds that grow on the side of the road.
Stay tuned!