Sleeping With the Enemy - Ethanol and Oil Consummate Relationship

The Ethanol Industry and Oil coming together giving birth to collusive agreements to keep ethanol priced pegged to the price of gasoline .

Minneapolis, MN (PRWEB) July 10, 2006 -- E85 was a true pricing alternative to gasoline 2 years ago, at that time you could buy E85 for as much as $1 less a gallon . Today E85 on average runs as much if not more than Gasoline.

As http://E85Vehicles.com has discovered , the reason has nothing to do with increased demand , nothing to do with an insatiable appetite for ethanol , but appears to have everything to do with the the Ethanol Industry and Oil coming together giving birth to collusive agreements keeping the price of pegged to the price of Gasoline.

This revelation comes directly form the Renewable Fuels Association:

"Most ethanol is sold under long-term contract. These contracts are private agreements between ethanol producers/marketers and petroleum companies. According to industry observers, roughly 90 to 95% of ethanol is sold under these long-term contracts (6 to 12 months). Many of these contracts are "fixed price." In other words, the price a petroleum company pays for the ethanol doesn't change, regardless of changes in the spot (wholesale) market price. Some of these contracts may be "pegged" to a gasoline benchmark. In this case, when wholesale gasoline prices move up or down, the price a petroleum company pays for ethanol moves accordingly. The remaining small amount of ethanol is sold on the 'spot' market."

http://www.ethanolrfa.org/industry/statistics/

This collusive relationship ensures that E85 can never be a true pricing alternative to Gasoline and also ensures the two industries will never need to actually compete against each other.
Instead of competing they simply make these agreements that ensure massive collusive profits for each Industry , once again at the consumers expense.

The solution is quite simple. Politicians need to decide they will actually work for the consumer instead of for these Ethanol and Oil Industries with legislation that:

1.)Puts an end to private collusive agreements between Ethanol and Oil.

2.)Ethanol must create it's own private network of E85 Stations, with incentives at State and Federal Levels.

3.)Banning Oil from owning and investing in Ethanol.

4.)Drop blending of E10,E20 (which do nothing but tighten the ethanol production levels) and use that supply of ethanol for a true alternative fuel E85

The best support that our Politicians can offer their constituents is a legal separation of Ethanol and Oil . The consumer cannot win if these industries are allowed to continue to come together and create agreements that allow them from actually having to compete for the consumers business.

E85Vehicles.com offers data, commentary and forum discussion.

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