well, it does still contain some petroleum, so that increases each time gas prices rise. also, it has to be produced and shipped to the gas stations, and that uses energy. and, it is only produced by a few refineries, so it is a little more costly to make than regular gasoline is right now.
e-85 is 85% ETHANOL and 15 % gasoline. The reason for the cost is.. lack of distribution. most of the new cars on the road today will take the e-85, but i have seen some cars that will throw a lean run trouble code and engine light if you do not mix about 5 gallons of regular fuel in the tank. e-85 is a cleaner burning fuel and will clean the combustion chamber
price is based on oil price..it really cost more for ethanol but govt pays subsidy of 50 cents / gal… eth also provides about 30 % LESS MPG. so u need to burn more… all around bad deal.
At the USA’s current level of production, ethanol is not cheaper than gasoline. The whole buzz about ethanol is that it can be made to be cheaper than gasoline, assuming proper faciltities are put in place to handle the demand. This also assumes that gas prices will not go down. If gas were to drop to $1/gal like in the 90’s ethanol would not be able to compete locally. Also please remember that even though the price *can* be cheaper, does not mean the gas companies have an incentive to make it be cheaper. Ethanol production will not *inherantly* cause operating a motor vehicle to be cheaper in the long run, it will only cause the price of that fuel to not be dependent on foreign oil. Something else to consider: Since ethanol contains less energy than the same volume of gasoline, you must also factor in the more frequent fillups you’ll need.
To answer your question and not go into all the other issues about e85………The price follows gas prices because the distribution is controlled by the same people/companies. Do you really think Exxon or Shell or any other oil company has a desire to see a sudden drop in regular gas purchases? This is why the e85 price rises and falls with gas prices even though the ethanol cost itself does not. It will never change as long as the oil companies control the ethanol supplt to the consumers.
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well, it does still contain some petroleum, so that increases each time gas prices rise. also, it has to be produced and shipped to the gas stations, and that uses energy. and, it is only produced by a few refineries, so it is a little more costly to make than regular gasoline is right now.
e-85 is 85% ETHANOL and 15 % gasoline. The reason for the cost is.. lack of distribution. most of the new cars on the road today will take the e-85, but i have seen some cars that will throw a lean run trouble code and engine light if you do not mix about 5 gallons of regular fuel in the tank. e-85 is a cleaner burning fuel and will clean the combustion chamber
price is based on oil price..it really cost more for ethanol but govt pays subsidy of 50 cents / gal… eth also provides about 30 % LESS MPG. so u need to burn more… all around bad deal.
At the USA’s current level of production, ethanol is not cheaper than gasoline. The whole buzz about ethanol is that it can be made to be cheaper than gasoline, assuming proper faciltities are put in place to handle the demand. This also assumes that gas prices will not go down. If gas were to drop to $1/gal like in the 90’s ethanol would not be able to compete locally. Also please remember that even though the price *can* be cheaper, does not mean the gas companies have an incentive to make it be cheaper. Ethanol production will not *inherantly* cause operating a motor vehicle to be cheaper in the long run, it will only cause the price of that fuel to not be dependent on foreign oil. Something else to consider: Since ethanol contains less energy than the same volume of gasoline, you must also factor in the more frequent fillups you’ll need.
To answer your question and not go into all the other issues about e85………The price follows gas prices because the distribution is controlled by the same people/companies. Do you really think Exxon or Shell or any other oil company has a desire to see a sudden drop in regular gas purchases? This is why the e85 price rises and falls with gas prices even though the ethanol cost itself does not. It will never change as long as the oil companies control the ethanol supplt to the consumers.