GM Inside News Forum - View Single Post - Iowa negotiating for algae biodiesel plant

TORRED1 · 04-11-2008, 10:38 AM

Im glad that the alternative fuels option continues to expand, have a question for you though, HR, Ive noticed that the price of E85 keeps pace with the price of gas, this does not make sense to me. If the price of a barrel of oil goes up and their for gas say from 3.15 to 3.35 and E85 was 2.75 it is now 2.95, it allways seems to keep that 30 to 35 cent distance from regular. would one be correct in thinking that the price of ethanol would be stable, if E85 was selling for 2.25 then shouldn't it be only 1.5 cent higher for every 10 cent price price in gas. so if gas has gone up 50 cent then E85 should have gone up 7.5 cent maye be 10 cent. sounds logical to me, tell me where im wrong.

04-11-2008, 10:38 AM	#3 (permalink)
TORRED1 3.0 Liter SIDI V6 Join Date: May 2006 Location: CITY OF CHAMPIONS Drives: 2004 GTO 2006 HHR Posts: 722	Re: Iowa negotiating for algae biodiesel plant Im glad that the alternative fuels option continues to expand, have a question for you though, HR, Ive noticed that the price of E85 keeps pace with the price of gas, this does not make sense to me. If the price of a barrel of oil goes up and their for gas say from 3.15 to 3.35 and E85 was 2.75 it is now 2.95, it allways seems to keep that 30 to 35 cent distance from regular. would one be correct in thinking that the price of ethanol would be stable, if E85 was selling for 2.25 then shouldn't it be only 1.5 cent higher for every 10 cent price price in gas. so if gas has gone up 50 cent then E85 should have gone up 7.5 cent maye be 10 cent. sounds logical to me, tell me where im wrong.