Posted by Indiana Ken on February 03, 2013 at 08:37:18 from (67.163.32.18):
In Reply to: E15 posted by JimEvans on February 01, 2013 at 17:16:37:
Quoting Removed, click Modern View to see
Yes, excellent point - this is typically not mentioned. My first job out of college was at an oil refinery - we had a knock engine monitoring the octane level of the the gasoline going to the tank farm. TEL (lead) was added as required to make the octane specification. A rail spur ran behind the blending building where the tank cars of TEL were parked - we pumped directly from the tank cars.
After TEL was banned the price increased approximately 10% (as I recall) to cover the additional costs of refining a higher octane product. Back then the oil companys were the villain and people complained, "they removed the lead and raised the price".
Fast forward 40 years; in my area 10 cents separates the gasoline grades. For example 89 octane is priced 10 cents above 87 and 91/92 is priced 10 cents above 89. Therefore, one gallon of ethanol blended with 9 gallons of gasoline results in 10 gallons of product with an added retail value of 10 cents per gallon. Remove the ethanol and the cost will again increase to reflect the refining cost of a higher octane product.
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