One thing about the ethanol sector, … it never stops pushing for more, more, more.
Like right now, the industry is pushing EPA to sign off on higher blends of ethanol into gasoline. Currently the cap is 10 percent.
Why do they want higher blends approved? Simple. Ethanol is more expensive than gasoline right now.
According to the America Coalition for Ethanol, for December 3, 2008, the average rack price - or wholesale price - of ethanol in Nebraska is $1.81 per gallon. In South Dakota it is $1.80. That is equal to the national average RETAIL price of gasoline released by the US Department of Energy on December 1, 2008.
On the futures markets, … ethanol opened trading today at $1.53/gal, while RBOB Gasoline, the reformulated gasoline with which ethanol is mixed, opened trading today at $1.01/gal.
Unless they get higher blends mandated, … gas prices will remain low.




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