Ethanol Prices Stabilizing
3 Comments
Posted by Cindy Zimmerman – July 25th, 2006
All the complaining about high ethanol prices may soon come to an end. Reports are that ethanol prices appear to be leveling out and should start falling. An article in the Waterloo Cedar Falls Courier today quotes Tami Foster, an energy data analyst with the Iowa Department of Natural Resources.
Foster said high ethanol demand on the east and west coasts has stabilized. At the same time more ethanol production capacity is coming on line in Iowa and elsewhere.
That means several months of rising ethanol prices may be at an end, Foster said. And she predicts in a week or so ethanol’s price at the pump will fall back below regular unleaded.
3 Comments »
Darin Grimm
I have been following prices on this website recently: http://www.axxispetro.com/ace.shtml
The first of July, the average across all listed states was $3.80. Yesturday it hit 2.81, so average rack prices dropped $1 in about 2-3 weeks. Certianly appears like the huge runup is over and we have already had a significant correction.
Corky Estrada
All the complaining about high ethanol prices may soon come to an end.
“http://www.wastenews.com/headlines2.html?id=1154104701″
Increased federal and state subsidies for ethanol production will not benefit consumers in the form of lower gas prices, according to a study by a nonpartisan consumer tax group.
Taxpayers subsidize the ethanol industry to the tune of $2 billion per year through an ethanol tax credit of 51 cents per gallon and government corn-crop payments, the National Taxpayers Union report said. The report criticized the industry for not being able to compete in the marketplace despite “nearly 30 years of government help and protection,” said Jeff Dircksen, NTU policy analyst and author of the study.
Cindy
As the entire article you are referencing points out, the study is misleading and does not note the fact that the petroleum industry has received incentives for decades.
The report incorrectly states that ethanol producers benefit from the 51-cent Blender´s Tax Credit when it is actually an incentive the petroleum industry receives for blending ethanol into gasoline.
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