Help me understand

[1978elcamino]

Was at a Racetrack fuel station in Florida and filling up with regular 87 as usual. The pumps have three handles, one for diesel, one for regular, mid and premium. The third handle is orange, 88 octane and is 15% ethanol. What I need help with is the economics behind this. The cost of the E15 is 12 cents more per gallon than regular. Someone help me understand / find any logic in the price difference between the regular 87 and the 88 E15?. I would expect the E15 to cost less, not more.

 

[mk378]

It depends on the price of crude oil. Today's relatively low price of about $52 per barrel it becomes cheaper to produce gasoline than ethanol.

 

[czbrian]

The E15 is always exactly $0.05 cheaper per gallon than the E10 87 at the Murphy's near my house.

 

[SeaJay]

The 87 regular is very likely to be E10 in Florida.

 

[1978elcamino]

Originally Posted by SeaJay
The 87 regular is very likely to be E10 in Florida.


87 in Florida is 10% ethanol. This is why the higher price for E15 makes no sense. Im all for supporting Farmers but Dang!

 

[Skippy722]

I've never seen E15 higher than 87, at worst it was priced the same. I used to run it in my Caliber, car didn't care and got the same fuel mileage as it did on 87. But I certainly wouldn't pay more for it!

 

[Rmay635703]

Originally Posted by 1978elcamino
Was at a Racetrack fuel station in Florida and filling up with regular 87

The third handle is orange, 88 octane and is 15% ethanol.
I would expect the E15 to cost less, not more.


Your problem is Florida,
E15 should be cheaper by at least 5cents or you don't buy it.

My guess is your e85 is probably more than rug too while up here you save a buck.

Here in Wisconsin there is one particular station that carries e15 and it's usually 15 cents + a gallon cheaper than any other stations rug.

My guess is your station figureS they can get someone stupid to think higher octane higher cost.

Around here something equally confusing is when normal e10 "mid grade" 88 octane is 40 cents a gallon more than rug. I honestly don't know why a station would even offer 88 e10 as a premium mid grade but many do for some reason, not even worth using for even a penny more.

 

[K20FA5]

The newest Race Trac by us also has the E15 88 stuff. It's always $0.10 more than the E10 87 stuff. I've a,so never understood why anyone would choose it over good old 87?