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The news segment did the math and calculated the cost per mile.
Well, not sure what news segment did the math, or how they calculated it. USA Today did a story a few months ago about E85 (which is only 85% Ethanol) actually costing MORE than E10 (10% ethanol which is used in a lot of places). Yet they quoted its efficiency as only 72% of E10. So that means that in order to make it break even, the cost per gallon of E85 would have to be 27% less than regular unleaded gasoline. Now I've read stories where E85 was projected to sell at about 10% below gasoline prices, but no where near 27% below.
But I also watch for alke at the gas pump. I think this situation will change soon. With gas going over $3.00 / gal you will see more of this. The cost advantage will switch to alcohol even with the BTU difference. I wish the MB and Vet could run 100% alcohol and be dual fueled. But then it is difficult to get 2 drops of lemon in the gas tank.
I would have no problem running E85, or even 100% ethanol if it did not cost me more money. Even if that meant I got less miles per gallon, and I had to fill up more often. But today, the drop in efficiency does not make up for the price difference.
My point is that companies like GM who are making and marketing their "flex fueled" cars, and marketing E85 are in a sense trying to fool the consumer into thinking that this is good for them. Until it actually is good for them, I don't see this catching on. In fact, I see a lot of E85 users probably wondering why their fuel costs are higher than when they ran regular gasoline.
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