Cost of Ethanol Rises on Increased Demand

This is what happens with success. Balancing supply and demand is the key to the ongoing viability of a comodity. This is a critical time. Ethanol producers will expand output based on these higher prices, but it needs to happen rapidly so that consumers do not turn away from ethanol permanently. High fuel economy flex-fuel vehicles like the Saab 9-5 Biofuel would help as well by eliminating the mileage deficit. This car is now available only in Europe. -- Jeffrey Goettemoeller
USATODAY.com - Cost of E85 fuel is higher than gasoline:
by James R. Healey, USA Today -- 2/14/2006
"The price of ethanol has been driven up because major oil refiners are suddenly buying in bulk. They're stocking up on ethanol as a replacement for MTBE, a petroleum-based additive suspected of causing cancer. MTBE and ethanol boost the octane of gasoline and can reduce pollution."