EIA: E85 Fuel Becoming Price-Competitive with Gasoline in US Midwest
by Conglin Xu (Oil & Gas Journal) E85 motor fuel—gasoline blended with as much as 85% ethanol and commonly used by flexible-fuel vehicles (FFV) in the US and Europe—is becoming increasingly price-competitive with gasoline in several Midwestern states on an energy-content basis, according to the US Energy Information Administration.
“The lowest E85 pump prices have generally been in the Midwest, where most US ethanol is produced and which, consequently, has relatively low wholesale ethanol prices,” EIA said, adding that nationwide, about 2,350 retail outlets, or 2%, offer E85 motor fuel, with the overwhelming majority in the Midwest.
Because E85 is less energy dense than standard E10 gasoline and less widespread, consumers using E85 will need to fuel more often and travel father to reach a station that offers E85. “For these reasons, some consumers may not be willing to switch from E10 to E85 until the latter is discounted below its energy parity price,” EIA noted, adding, “Important questions include how many consumers would not consider switching without such a discount and the size of the discount that may be required.” READ MORE