E85 Price Rises in April Due to Infrastructure Issues

4 years 2 weeks 6 days ago Monday, May 05 2014 May 5, 2014 Monday, May 05, 2014 3:36:00 PM CDT May 05, 2014 in News
By: Tyler Greever, KOMU 8 Reporter
loading

COLUMBIA - Throughout the month of April, the price of E85 gasoline has increased more than local oil marketers have seen before.

According to E85prices.com, the price of E85 has risen from an average of $2.76 per gallon in March to $3.13 per gallon in April. That is the highest mark for E85 prices since May 2013, when the price was $3.36 per gallon.

E85 gasoline is made up of 85 percent ethanol, while regular gasoline in Missouri is made up of at least 10 percent ethanol.

The increase in price for E85 brings it much closer to the price of regular gasoline. Regular gas averaged out at a price of $3.35 per gallon for April.

While E85 is still cheaper, drivers still may be paying more once they factor in the energy output they get on E85 versus regular gasoline.

According to the U.S. Department of Energy's 2014 Clean Cities Alternative Fuel Report published in January, drivers paid less per gallon with regular gasoline when both fuels were put to an energy equivalency test. Alternative fuels such as ethanol hold a lower energy content per gallon that gasoline. The U.S. Department of Energy calculates that when gas is $3.34 a gallon and E85 is $3.04 a gallon, a driver using E85 has to spend $4.29 on that fuel to go as far as $3.34 in gas will take him.

Bradley Schaad, the ethanol policy director at the Missouri Corn Growers Association, said the spike in ethanol price deals with how it's being shipped out.

"The price of ethanol has went up the past month due to a shortage of being able to get ethanol out to where it's needed on the coast," Schaad said. "We do use a lot of ethanol here in the Midwest, but more of it is sold across the United States on the coast and they do that by rail due to some things that aren't being allowed for ethanol to go through the pipeline."

Schaad said he knows consumers are worried about their pocketbooks, but that some will still choose to use E85 due to it being better for the environment and it helping keep business local.

"Clean air benefits is one of the main things you're getting out of it," Schaad said. "You're also helping an industry here in Missouri rather than shipping your dollars overseas. I would rather choose my energy from the Midwest rather than the Middle East but at the same time, I understand it affects everybody's pocketbook."

Tom May, the director of public relations for MFA Oil, said consumers narrow their choice between regular gasoline and E85 down to two factors.

"They're doing the math and saying what is the most economical decision for me to make to burn in my car," May said. "For other consumers, they're absolutely supportive of the ethanol industry."

May said this spike in ethanol price does not happen often, but he can see why it happened with how the United States currently stands in energy infrastructure. 

"It's really a rare occurrence. Don't look for it being that way on a regular basis," May said. "With the infrastructure issues we have in our country with energy, and not wanting to build pipelines and utility lines and all the infrastructure needs we have as a country, these kind of things are going to happen."

Even though the ethanol price was high in April, Schaad said the price is starting to come back down.

"In the last week, a lot of that build-up has been reduced down," Schaad said. "It's getting close to a dollar per gallon difference between whenever you're looking at the price at the ethanol plant to where gasoline is being sold." 

Currently, according to E85prices.com, the average E85 price in Missouri is at $3.29 per gallon, while the average gas price is at $3.37 per gallon.

More News

Grid
List
JEFFERSON CITY (AP) — Missourians who are moving outdoors as the weather should keep their eyes open for snakes. ... More >>
2 hours ago Saturday, May 26 2018 May 26, 2018 Saturday, May 26, 2018 10:21:00 AM CDT May 26, 2018 in News
(CNN) -- The counting of votes was underway Saturday following Ireland's referendum to lift the... More >>
6 hours ago Saturday, May 26 2018 May 26, 2018 Saturday, May 26, 2018 6:43:00 AM CDT May 26, 2018 in News
NEW BLOOMFIELD - New Bloomfield has a new mayor, but it's the way he was selected that has a group... More >>
15 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 9:26:00 PM CDT May 25, 2018 in News
KANSAS CITY, Mo. (AP) — The ACLU of Missouri is suing the Independence School District on behalf of a senior... More >>
18 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 6:35:52 PM CDT May 25, 2018 in News
COLUMBIA - The Thornbrook neighborhood was without water and electricity for almost two hours on Friday. Columbia Water and... More >>
19 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 5:36:00 PM CDT May 25, 2018 in News
CALLAWAY COUNTY – Four vehicle crashes have occurred this week along State Road F west of Fulton in Callaway County.... More >>
20 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 4:12:00 PM CDT May 25, 2018 in News
COLUMBIA – After serving eight years in the United States Air Force, the passion of this veteran for sky travel... More >>
21 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 3:50:00 PM CDT May 25, 2018 in News
JEFFERSON CITY - In another day of political theater, the special House committee investigating Governor Eric Greitens heard new testimony... More >>
21 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 3:15:00 PM CDT May 25, 2018 in News
COLUMBIA- Organizers are expecting a large turnout for the 30th annual "Salute to Veterans" airshow on Memorial Day weekend. ... More >>
22 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:53:00 PM CDT May 25, 2018 in News
COLUMBIA- When most people lose an animal, one of the first steps is to put a "missing" sign on a... More >>
22 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:46:00 PM CDT May 25, 2018 in News
COLUMBIA - Aircraft and pilots met at Columbia Regional Airport Friday to prepare for the 30th annual "Salute to Veterans"... More >>
22 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:45:00 PM CDT May 25, 2018 in News
CALIFORNIA - A high-speed car chase ended Sunday when the suspect slid into a ditch, according to a press release... More >>
22 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:30:00 PM CDT May 25, 2018 in News
JEFFERSON CITY- It's no secret more cars will out for Memorial Day weekend, but many drivers are taking precautions before... More >>
22 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:16:00 PM CDT May 25, 2018 in News
JEFFERSON CITY - More than five hundred Missourians have lost their hunting, fishing and trapping licenses after a Department of... More >>
23 hours ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 1:48:00 PM CDT May 25, 2018 in News
HARRISONVILLE (AP) — Authorities say a 12-year-old western Missouri boy fought off an attempted abduction by hitting the... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 8:53:00 AM CDT May 25, 2018 in News
COLUMBIA - Missouri State Highway Patrol is investigating an early morning crash on I-70 Westbound. It caused major backups... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 8:47:00 AM CDT May 25, 2018 in News
COLUMBIA - On Thursday, the Columbia Airport Advisory Board announced the TSA approved a security screening lane to open by... More >>
1 day ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 11:41:00 PM CDT May 24, 2018 in News
COLUMBIA- May is known for Mother’s day, Memorial Day and in Missouri, the start of tick season. “May, June... More >>
1 day ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 8:21:00 PM CDT May 24, 2018 in News
Columbia, MO
Broken Clouds 85°
1pm 89°
2pm 91°
3pm 91°
4pm 91°