Bio-fuels not providing relief at the pump

by Nora Gathings (hsgathings@wsbt.com)

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The cost of some biofuels has surpassed diesel fuel. Only E-85 is cheaper right now

The cost of some biofuels has surpassed diesel fuel. Only E-85 is cheaper right now. (WSBT photo)

By WSBT News1

MISHAWAKA — Some people thought bio-fuels would help them save money, but it's not putting more money into everyone's pocket. Drivers say bio-diesel now costs $1 more per gallon than diesel.

Like diesel, bio-diesel prices fluctuate based upon the cost of crude oil, but it also changes because of the cost of soybeans.

A local seller says it's too early to tell whether this year's sales will be affected.

Not all forms of bio-fuel are skyrocketing. Some people are reaching for E85 and saving.

"I'm happy. I'm paying $2.89 versus $3.39," said a driver who uses E85. "Every time I fill up, I'm saving at least $10."

But only ethanol consumers are saving right now.

"The price of bio-diesel fluctuates along with the crude oil price," said Jason Lemler of Lemler Oil in Bourbon.

Lemler has purchased the soybean-based diesel alternative for five years.

"Our local farmers started pushing bio-diesel for their soybean use ... to get a little more out of their soybeans," he said.

Cold causes bio-diesel to congeal, so he only purchases it when it's warm.

That happens to be the time 95 percent of his clients need it.

"I'm sure here, in a few weeks when farmers get out, there will be more interest, but it depends on what the price is," said Lemler.

This year's supply will come from the bio-diesel plant in Claypool. It doesn't expect soybean prices to affect production or cost.

Cost isn't stopping some people from buying other bio-fuel, like E85.

"I'm trying to sell everyone this car," said one driver of her fuel flex mini-van.

AAA says gas stations in Hawaii and California started selling $4 gas this week.

With crude oil prices at an all-time high of $110 a barrel, more people say they're thinking about ethanol.

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