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Old 08-15-2012, 08:22 AM   #450
BiggerBoat
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Quote:
Originally Posted by cessna1 View Post
Cooper added that consumers won’t see any significant price drops in their grocery bills if the RFS is waived. He highlighted recent research that shows the waiver would produce only a 4.6 percent reduction in corn prices at the commodity level, which translates to even less for consumers when you consider that only 14 cents of every food dollar spent goes toward the actual commodity… transportation costs, support, marketing, etc. make up the other 86 cents. And he noted that consumers would end up paying a lot more for gasoline as ethanol is credited with lowering gas prices $.84-$1.07 per gallon. “Really what’s driving higher gas prices, as you would expect, are higher crude oil prices and some of the problems in the refining sector.”
http://domesticfuel.com/2012/08/14/r...es-for-anyone/
You posted some interesting info here most of which seem at least plausible. I'm a little skeptical of the $1 /per gallon less due to Ethanol. I would be curious to know the estimated actual total cost to produce a gallon of Ethanol. Over the past few years, I have filled up at a station that carries E85. As gasoline (E10) has cycled down to $2 dollars and back up to $4. The E85 has always just tracked at .30 cents under the E10. So, were they selling E85 at a loss at $2? Are they making a great margin now getting $3.79?
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