Gas prices higher because of higher ethanol cost - Autoweek
This just seems to go from bad to worse. It's bad enough we have "corn squeezings" politicked into our gas tanks, but
now we are being held hostage to 30 percent price increases on ethanol.
How do we get this stuff out of our gas? Vote in new politicians?
Maybe this will do in the gas motor, we will buy hybrids and diesels to get away from the corn.
Can't we profitably sell this corn somewhere else? Now that we have our farming community addicted to ethanol demand...
and why a 30% increase?
I love corn, I just don't want it in my car. Except in the trunk coming home to put in the pot.
No - we can't sell it for the inflated prices. Big Ag Business has ridden corn to the top of the heap.
Funny facts there:
So, essentially the $4-a-gallon ethanol is being blended with the $2.50-a-gallon gasoline, resulting in an overall increase in price, which was recorded at $3.566 a gallon according to AAA's Daily Fuel Gauge Report.
Gas $2.50/gal
Ethanol - NOW $4/gal, before $2.80 - change $1.20
Add 10% of $1.20/gal to $2.50 and that would be a $0.12 increase.
Add $4/gallon to $2.50/gallon and divide by 2 and I get $3.25
I think you would have to get rid of the EPA and all their braindead rulings. NOT an easy chore.
At the time it was the best option.
The demand for ethanol produced from field corn was spurred by the discovery that methyl tertiary butyl ether (MTBE) was contaminating groundwater.[27][30] MTBE's use as an oxygenate additive was widespread due to mandates in the Clean Air Act amendments of 1992 to reduce carbon monoxide emissions. MTBE in gasoline had been banned in almost 20 states by 2006. Suppliers were concerned about potential litigation and a 2005 court decision denying legal protection for MTBE.[citation needed] MTBE's fall from grace opened a new market for ethanol, its primary substitute.[27] Corn prices at the time were around US$2 a bushel.[citation needed] Farmers saw a new market and increased production. This demand shift took place at a time when oil prices were rising.
For those of you lucky enough to have totally missed the Big Business pollution of air and water prior to the late '70's count yourself lucky. We had burning rivers, major cities you could barely breath in.
Many EPA actions have prevented things like the moonscape outside of Sudbury, Canada.
Sudbury: The Journey from Moonscape to Sustainably Green
If you had visited Sudbury by driving on the major roads from east to west it was harrowing experience. That has been my worst experience in human caused pollution.
Major cities on the east coast especially suffered SIGNIFICANT air pollution from cars in the '70's. Despite the vast increase in auto's since then the air pollution has remained the same or decreased. MTBE was the first try to reduce pollution. Ethanol was a replacement that lined Big Ag's pockets so well they lined Congresses to keep it going.
The government wants the money back they loaned the farmers so they need to ensure they can sell their products.
Chris
No the Congress wants the money so they keep getting elected.
The ethanol business was designed from the beginning as a sell out (read theft ) for the benefit of big ag.
Big surprise fuel prices goes up, fuel economy goes down and food prices rise.
I've been watching Ag Day (
Farming News, Market Prices & Agribusiness for Farmers | AgDay) off and on for several years. When China was buying corn and prices were zooming up over $7/ bushel life was GREAT. Then all of a sudden EPA started changing their mind about 15% ethanol and as of January corn dropped to about $4.50/bushel and since has recovered to about $5.50.
It was interesting on Ag Day because as the prices were falling in January I'd watch a report of farmers saying how great it was that they could get ethanol free gas. Then the next segment would be big business complaining about taking the ethanol out of gas.
With corn yield pushing 160 bushels/acre every $ change in bushel means a $ change in profit because the input remains the same. To go from $7.50/bu to $4.50/bu was a drop that panicked all the big growers and made the beef and pig farmers ecstatic.
But why do I care? Gas is for chainsaws. I've a diesel truck and car.
