Gasohol

On Jun 7, 6:20 pm, M wrote:
On Jun 3, 7:31 pm, SS2MO wrote:

Currently retailers can save money by adding alcohol to the gasoline
because the alcohol is less expensive than gasoline, so they can blen
it in and sell it to you as auto gasoline - you may not know it.

I don't believe it's true anymore. At some point last year or so
wholesale price of ethonal started to exceed the wholesale price of 87
octane gasoline.

Today in Chicago, wholesale gasoline is trading at $2.30 per gallon.
This does not include freight to haul it from the terminal to the
retail outlet, taxes or the retailer margin. Ethanol in Chicago today
is trading for $2.05 per gallon. The blender of the ethanol receives
a 51 cent per gallon credit, so blending 10% alcohol reduces the price
5.1 cents per gallon.

$2.30 X 90% = $2.07
$2.05 - .051 X 10% = $.1997

$2.07 + $.1997 = $2.2697

This means that a retailer can blend alcohol tolday and sell it to you
as gasoline and save 3.03 cents per gallon. In many locations this is
double their margin.