Quote:
Originally Posted by spaz
so basicly they have to be losing money in order for it to be worth it economically for consumers
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No. The price of E85 does not reflect the price blenders need to charge to make a profit. Rather, the price of E85 simply tracks the price of gasoline. They can charge the (adjusted) equivalent of mid-grade gasoline and still sell all they can make. A month ago, when they were charging (adjusted) less than regular gasoline is going for today, the blenders were not losing money. The adjusted price was $2.95/gallon a month ago. They could drop their price (adjusted) to below regular gasoline and still make a profit, but why should they if they can sell out at the current price?
In several states, (
www.e85prices.com) blenders are selling E85 for way less (adjusted) than regular gasoline. They are not going out of business. Rather, they simply are responding to what the market will bear.