You might have noticed that E-85 and other higher blends of ethanol are significantly cheaper than regular gasoline at the pump. It is a good time to own an FFV vehicle and buy E-85.
This week the price of wholesale ethanol ($2.27) was around $1.40 per gallon cheaper than the wholesale price of gasoline ($3.68). In Illinois this means that E-85 could be anywhere from $3.08 to $3.40 depending on the blend and if the savings are passed on to the consumer.
Ethanol has saturated the market at an E-10 level so the supply of ethanol is outpacing demand. If we add to this a recent overall drop in demand for gasoline then ethanol gallons are looking for a home. This huge price advantage for ethanol could easily hold through the summer if E-15 does not find its way into the marketplace or if we do not see a reduction in production by the ethanol plants.
For those of us driving FFV vehicles let’s take advantage of the value ethanol is providing through higher blends.