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Originally Posted by BigAls87Z28
http://www.msnbc.msn.com/id/12676374/
yet another article.
Case closed. E85 will offer us better gas and for cheaper. This might cause the price of oil itself to come down as people will not need it as much and will not be in demand. Its a win win for everyone.
Dont wana use it? Fine. Id be more then happy to use E85.
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you are still missing the same point about fuel pricing. the fuel companies are not going to give up their profits. they will merely roll the lower costs into better margin and leave you and i stuck paying the same or with in a few cents of what we pay now.
need proof, diesel. it costs about 40% LESS to produce diesel as it is sold at the pump in the US. is teh price 40% lower? no, it is usually with in $.10 of regular gas. why? because they know a captive market when they see it.
this is high school level economics. if someone NEEDS something, you can stick it to them as hard as you want, and if you competitors follow suit(anyone who watches gas station prices knows how this works) then you can just keep on jamming penny after penny out of them.
ethanol as an additive or as a primary source only has a shot at changing the prices at the pump for a very brief period of time, if at all. as of right now every BP and Luk i see is priced the same as the gas station they are next to. so that 10/15/whatever percentage of ethanol is that they are saving produciton costs on isn't helping anyone.
Profit > Being fair to consumers