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E85 ethanol sales up 27 percent

http://blogs.desmoinesregister.com/dmr/index.php/2011/05/24/e85-ethanol-sales-up-27-percent/

12:46 PM, May 24, 2011 | by Dan Piller |
Categories: Green Fields: Agriculture and Alternative Energy


As the price of unleaded gasoline climbed by 90 cents per gallon during the first quarter, sales of cheaper E85 ethanol blend rose by 27 percent during the same period over the fourth quarter of 2010, the Iowa Renewable Fuels Association said today.

According to the Iowa Department of Revenue, sales of E85 by Iowa retailers reached 2,645,038 gallons during the first three months of this year. Compared to the first quarter of 2010, E85 sales were up 64 percent in 2011.

While the price of unleaded gasoline with the ten percent ethanol blend rose from $2.99 per gallon at the end of 2010 to $3.90 per gallon by late April, E85 remained below $3 per gallon at most Iowa outlets.

“Consumers have increasingly sought out E85 as an affordable, homegrown alternative with gasoline prices approaching $4 per gallon,” stated IRFA Executive Director Monte Shaw. “It was especially exciting to see E85 sales increase robustly even as the Iowa E85 retailer tax credit was cut by half on the first of January.”

Since January 1, 2006, Iowa retailers have received a tax credit for each gallon of E85 sold. Under the 2006 law, the E85 tax credit was reduced from 20 cents per gallon to 10 cents per gallon on January 1, 2011.

Iowa currently has 142 retail outlets offering E85. A list of all the E85 stations can be found at: www.iowarfa.org/ethanol_e85refueling.php.