Biodiesel pricing

[lotzagoodstuff]

So I'm just wondering: what's up with biodiesel pricing? Back when fuel was cheap, like $2.40 or so, I remember seeing biodiesel (B99) at around $3.00 per gallon locally here in Vancouver. I remember very clearly saying "I'm going to run this stuff when and if diesel goes up above $3/gallon". So why is bio at the same station $4.40 when diesel at the next pump at the same station is $4.05?

I'm a capitolist and I want everybody to make a living (i.e. profit is not a dirty word),and I'm ok with bio chasing the diesel pricing, but why is it still 10-20% more than traditional diesel?

 

[RKOCH]

greed!!!

 

[bbressler]

Around here, there are a couple of reasons.

The first is that the Govm't has subsidized fuel prices, giving a 1 cent per percentage of bio in a blend. The fuel can be up to $1 cheaper if they sell B99. I think that's really the only reason why bio prices are even close to regular. As prices have climbed, I'm sure the price for methanol has gone up a bit for the producers and they raised prices accordingly. I'm also thinking that fuel producers weren't making enough to begin with, they had to use all of that dollar credit to make the product so that SOMEONE would buy it -- sacrificing profit margins, but now as the cost of diesel begins to creep up, they can begin to take some of that to improvements, and profit.

Depending on how the fuel is distributed (trucks running regular diesel) -- they may be faced with higher distribution costs because of the increase of regular diesel fuel.

 

[hheynow]

Besides the spike in methanol prices, soybean futures have skyrocketed. Two years ago a cubie of soy oil (4.5 gal) was about $15. Today it's about $25.

 

[RKOCH]

Methanol has not gone up that much. I was first paying 1.95 from univar in a 55 gal drum 2 years ago and just got 2 barrels yesterday and it was still only 2.25 a gal.

 

[Reefdiver72]

In Ohio today Bio diesel was 4.26 regular diesel was 3.79. I needed 7 gallons to make my 50 gallon batch of used oil fuel my truck likes it better anyways.

 

[Whit]

same deal here

I have access to B-20 but its 20 cents a gallon more

I usually run atleast a 5% blend of bio for the lubricity it provids

 

[whitebear]

Vancouver.BC. Canada bio 50 is 2cents a liter cheeper still not much of a savings

 

[jimraelee]

Besides the spike in methanol prices, soybean futures have skyrocketed. Two years ago a cubie of soy oil (4.5 gal) was about $15. Today it's about $25.

yup its starting to hit the open market and look at corn... its also on the rise because of bio fuels need

 

[Mike]

greed!!!

I believe the proper definition is supply and demand.

 

[rip van sparky]

I just fueled up, 3.99 for dino and 4.05 for B20, When dino was cheaper B20 was about 10 cents more, when dino recently spiked they were the same price. I've been running B20 for awhile now, no problems, engine seems to be slightly smoother but it could be in my head, too.

 

[dezl]

cause they can sell if for however much they want and people will pay it.


I make my own biodiesel and its costs me about 1.50 a gallon, that with methanol at 4.60 a gallon. So i dont think methanol pricing going up is why its so expensive. Its because the gov't has to tax the hell out of everything!