Was at the pump filling up yesterday at a station that sold E85. My truck is not flex fuel so I was getting regular (or so I thought). The 87 octane regular was selling for $2.79 while the E85 was selling for $2.30. Then I noticed that I was actually getting a 10% blend (E10). No big deal. Well I got gas for the wife latter in the evening at a station that is straight gas (no E10 blend). It was selling for the same $2.79.
Now looking at the comodities page today Ethanol was trading at $1.69 and gas was at $2.07. No biggie really but it got me thinking why does E10 sell the same as regular gas considering that 10% of its content is a lower priced material. By my calculations it should sell for about 5 or 6 cents less then regular 87 octane gas.