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St. Louis retailers may be over-pricing E85
A Renewable Fuels Association (RFS) study says some St. Louis area retailers may be price gouging on E85, the blend of 85 percent ethanol and 15 percent gasoline. The study found that average E85 prices were 12 percent below gasoline at wholesale, but one percent above gasoline at the retail level. Bob Dinneen, CEO of the RFS, suggests that fuel retailers are doing it to make their gasoline prices look more attractive than E85 prices. He says that by pricing E85 higher, oil refiners could create the perception that consumers are rejecting E85.
Tracking E85 and E10 prices in St Louis this summer, the Renewable Fuels Association found that E10 sold at $3.45 a gallon, but E85 was $3.47 a gallon. Based on typical markup, the association says E85 could have been offered at $2.44 to $2.55 a gallon.
The RFS claimed the trend may be due to refiners’ pricing requirements on retailers.
Tags: Ethanol, Renewable Fuels
Boy cot any station that does this Bring on the Blender Pumps. Step up Ag Co-ops.