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Low gas prices or better gas?
By dan | July 19, 2008
M&H has low gas prices in Duluth Minnesota. They primarily serve E-85 (85% ethanol / 15% gas) to a large base of loyal customers. A question arose in my mind as I pumped this expensive fuel – “Do I really want low gas prices or do I want better gas?”
This is 85% alcohol – 15% gas. I am paying for gas that is diluted by a cheaper product but billed as if it were a better gas product. Sometimes the difference between E85 gas pricing from M&H in Duluth and a service station over the high-bridge into Superior can range from $.10 cents to $.20 cents gallon to gallon.
This is sometimes questioned by those who think it is truly illogical that Wisconsin’s only oil refinery in the state which is in Superior, Murphy Oil, does not distribute gas locally. Add on to that fact Wisconsin charges high gas taxes. They say that is why the huge difference in prices between our cities.
As I thought about it longer I considered how I am losing 20% efficiency using the E-85 blend as opposed to using 100% unleaded gas. That means I need to use 20% more E85 gas to get the same mileage efficiency if I were to use unleaded gas.
I would be willing to pay for better gas. That would then justify these high prices.
Topics: gas price | Comments Off
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