That probably would be true a while back, but commodity pricing of ethanol and gasoline is pretty close right now, so there is no real advantage to hiking the ethanol blend.
Actually, gas is cheaper now....
Friday close on gasoline... $1.375
Friday close on ethanol.... $1.520
Of course, that is general contracts and regionally it would be different, up or down, in relation to each other.
While the RFS does play into EPA decisions regarding amount of ethanol, how that gets distributed and in what blends also plays into it. There is more pressure being put on installation of blender pumps, which will allow consumer selection of E10, E15, E20, E30, and E85. Obviously, the higher blends take the pressure off any E15 requirement that is being considered (my personal preference for my vehicle use would be E20. I use E15 now). RFS only allows for a 13-14 billion gallon ethanol production per year for the U.S right now, and they will not allow sugar beet growers to turn a lot of their stuff into fuel ethanol like they have been wanting to do for some time. We are exporting ethanol because the U.S. RFS levels are met.
Actually, gas is cheaper now....
Friday close on gasoline... $1.375
Friday close on ethanol.... $1.520
Of course, that is general contracts and regionally it would be different, up or down, in relation to each other.
While the RFS does play into EPA decisions regarding amount of ethanol, how that gets distributed and in what blends also plays into it. There is more pressure being put on installation of blender pumps, which will allow consumer selection of E10, E15, E20, E30, and E85. Obviously, the higher blends take the pressure off any E15 requirement that is being considered (my personal preference for my vehicle use would be E20. I use E15 now). RFS only allows for a 13-14 billion gallon ethanol production per year for the U.S right now, and they will not allow sugar beet growers to turn a lot of their stuff into fuel ethanol like they have been wanting to do for some time. We are exporting ethanol because the U.S. RFS levels are met.