No Longer Cheaper

No Longer Cheaper

It’s touted as being good for farmers and our environment, but right now ethanol isn’t so good for motorists?

The price of ethanol, which is usually 5 to 10 cents cheaper than regular unleaded gas, is now 5 cents more expensive. And some gas station owners say unless something changes, it could climb even higher this summer.

Because motorists always look to the top of the sign for the cheap gas, stations are now having to move regular unleaded to the top tier and ethanol to the second tier.

But the question is why? What’s driving the price of ethanol up? The ethanol industry says it’s a matter of supply and demand.

“Oil companies removed cheap jerseys several billion gallons of MTBE from the market place, like on the east coast and in the south. As a result the demand for ethanol has increased not only here in the midwest where it’s made, but in those parts of the country as well,” said Brian Jennings, Executive director for American Coalition for Ethanol.

There are 101 ethanol plants in the country right now, South Dakota has 11. But until they’re able to produce enough of the alternative fuel, the price could remain high.

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