Oil Companies Forcing E85 Prices to Rise

Bulk purchases of Ethanol by Oil Companies causing shortage of E85 forcing E85 to rise at pumps.

(PRWEB) February 23, 2006 -- E85 is 85% ethanol and only 15% gasoline. Americans are itching for an alternative to expensive gasoline. In 2004/2005 during the rise of gasoline to over $3 a gallon across the Country consumers thought they found that pricing alternative in E85. E85 was at that time selling up to $1 less a gallon than Unleaded. Finally it seemed a true pricing alternative to gasoline.

Then a funny thing happened. The price of E85 skyrocketed even though the number of stations carrying E85 barely grew, even though Ethanol production had reached its highest point ever. Today E85 cost just as much if not more than Unleaded at most stations around the Country.

E85Vehicles.com could find no shortage of E85 and no viable explanations for E85 to be priced the same as and higher then gasoline. Manipuation in the price of E85 is being explored by Mike Hatch , Minnesota's Attorney General and investigations have begun in other States.

The Oil Companies are claiming the increase in bulk ethanol purchases is to replace the banning of MTBE for oxygenation of it's gasoline fuels. The problem with that argument is that there are only a few states that haven't already converted away from MTBE's. This isn't a situation that arose overnight, MTBEs have been fazed out over the past 10 years, and yet almost overnight the Oil Industry feels a need to start cornering the Ethanol Market. It's not difficult to see the urgency when you understand the multi Billion dollars they make each quarter and the need to protect those Oil profits.

The most disturbing issue may be the appearance of the Ethanol industry bedding down with the Oil Industry. If thats the case then the consumer cannot win on pricing as long as these Industries are allowed to be partners in a collusive manner . It's far to easy for them to simply work together, assuring huge profits for both Industries instead of actually competing for the consumers dollar .

For E85 ethanol fuel to ever be a pricing alternative to Oil it means that Oil and Ethanol must be banned from coming together. There is no competition between the two Industries when Oil is allowed to own and dictate the production of Ethanol and when Ethanol not only allows it but invites the Oil Industry in.

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