2 Responses to "Alternative fuel for cars question! please help!?"

• 

  Breath on the Wind says:

  December 2, 2010 at 10:42 am

  Gasohol is a name used to refer to E10. This is 10% ethanol and 90% petroleum derived from crude oil. The effect of each is a matter of math. Petroleum prices will have 9 times the influence of ethanol prices.
• 

  J. says:

  December 2, 2010 at 10:42 am

  The corn used for ethanol production in the US comes not only from US crop lands but also South American crop lands. The prices a farmer gets for his crop is determined by brokers, not set by farmers. Since there is a direct link for corn, any increases in corn prices mean a higher price for the finished ethanol. With gets transferred to the customer. Be it E10/gasohol or E85.

  The price of crude is also directly linked to the E10 and E85, so fluctuations in that will also influence what the consumer pays at the pump. Since Ethanol is often subsidized by government, the fluctuations in whole sale prices of ethanol are slightly mitigated, but both components influence the price at the pump with slightly more influence from the crude oil pricing being influential.

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