Minnesota Boasts Some Pretty Awesome E85 Prices

Business News/Analysis, California, Illinois, Kentucky, Marketing/Market Forces and Sales, Minnesota, North Dakota, Texas, Washington

January 13, 2015

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by Holly Jessen (Ethanol Producer Magazine) A few weeks ago, a reader question sparked an interesting search for answers. That one comment has led to several stories and blogs at our website.

In mid-December, a reader asked me why, as opposed to some of the high E85 prices I wrote about in Illinois, in Minnesota, there are some gas stations with great E85 prices. In fact, compared to just over the border in Wisconsin, the prices are downright amazing.

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I went to e85prices.com for some additional comparison numbers of E85 prices in Wisconsin and Minnesota.

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In fact, according to the website, Minnesota has the most favorable E85 average price spread, with flex-fuel vehicle drivers winning at the gas pump. Other states of note are Texas, with a 24.3 percent average price spread, California, with a 20.7 percent average price spread, Kentucky, with a 17.8 percent average price spread, Illinois, with a 15.9 percent average price spread, and North Dakota, with a 15 percent average price spread. Note more than half the states don’t report E85 prices to this website.

The state with the worst reported E85 prices is Washington. Of the only three gas stations with reported E85 prices, all three are higher than the E10 price by 32 to 47 percent. The most expensive E85 is $3.51, compared to $2.54 for E10 at that station.

So, after all that, what’s the answer to the original question: how can gas stations in Minnesota offer such attractive E85 prices compared to other gas stations? The short answer is, ethanol plants selling E85 direct to gas station retailers, which creates competition, drives down prices and spurs other retailers to buy E85 direct from the source. READ MORE and MORE

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