Tuesday, June 06, 2006

"Cheap" Ethanol?

At one of the bazillion graduation parties over the weekend, a friend confidently assured me that 'ethanol is cheaper than gas.'

I told him to get acquainted with the CBOE, which would tell him otherwise in hard, cold prices.

Beyond that, thanks to Jib, we learn that the GWB Ethanol Plan has an interesting feature:

Mitchell says the ACGA calculates that the other part of the administration’s plan – paying the 51-cent per gallon blenders’ tax credit to gasoline distributors on the imported ethanol – would cost taxpayers $1.7 billion for every billion gallons of imported ethanol

That's $1.70 a gallon in tax credits.

Cheap, my fourth-point-of-contact...

1 comment:

steveegg said...

That would be CBOT (Chicago Board of Trade), and corn-a-hole for July '06 delivery is going for $3.405/gallon (compare that to the NYMEX regular unleaded gasoline price of $2.182/gallon and the NYMEX reformulated gasine price of $2.346/gallon, both also for July '06 delivery).