Think about this....
We are all reasonably sure that the big oil companies are engaging in price fixing, right?
When the price of gasoline started going through the roof, alternative fuels got going, but not before oil companies were posting record profits.
We "have to have it"....petroleum in the form of gasoline. The oil companies aren't stupid. They know that we, the American people and the people of the civilized world will pay the price to "have it".
But, now we are delving into alternative fuels like E85, oil from coal, oil from shale soy diesel, hybrid vehicles and what do the oil companies think?
Ethanol is by far the most progressed of alternative fuels though ethanol isn't as friendly as people think, it can be produced (and imported) in quantities large enough to make the oil companies take notice and this is exactly what they are doing. The break point for E85 from the producers/distillers standpoint is $2.42 per gallon. Factoring in the decrease in fuel mileage in a flex fuel vehicle, (remember that probably 90% of the vehicles on the road today can't run E85) regular unleaded gasoline, if it is below $2.60 per gallon, makes ethanol production unprofitable.
There is a problem and that is the American farmers have invested in domestic ethanol plants and have contracted their crops to the ethanol industry to be distilled and the farmers are going to take a hit (again). Can they afford it, I don't think so. Does our gummit care, no way. The good old boys on Pennsylvania Avenue are still lining their pockets from oil company stock dividends. Remember, Bush is an oil man, not an ethanol man.
I believe that after the oil companies squash the ethanol industry and other alternative fuels will follow suit, the price of gas will be adjusted to at least $5.00 per gallon and, we will pay it because we "have to have it".
By the way, prices here beat all of you......in Toledo, 2.27 per gallon.