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February 05, 2010

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Warde Eckert

It is very good to see that there are more stations
adding pumps for E85, why are more not avaiable?
I live in the northwest and you can't find a pump.
There are thousands of vehicles that can use E85
however there is no avaiability. Why is this??
Also why is it taxed the same as gasoline?
Does anybody have an answer?

Matt Merritt

To a degree, this has been a chicken-and-egg argument. More flex fuel vehicles (FFVs) will encourage stations to get blender pumps/more blender pumps will encourage drivers to get FFVs. The industry's been working on both fronts to break the gridlock, and I expect it will ramp up in the future in all areas of the country. Just the other day, for instance Ford recommitted to its promise that half its vehicles will be FFVs by 2012. It's already doubling it's FFV numbers this year.

As for taxes, in today's market, much of the ethanol tax credit is, in fact, passed on to the consumer.

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