Quote:
Originally posted by LarryBible
Price levels in a free enterprise system are determined by one thing, supply and demand. It stands to reason that if the petroleum based fuel prices increase, the demand for the biodiesel should increase, thus the demand will cause price to increase.
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You are right, of course (ignoring the possibility that the oil companies are using monopoly tactics to manipulate supply and increase prices like the electric companies did here not too long ago).
I was willing to pay a little extra for B100, and apparently now that petro diesel is closer in price, so were a lot of other people. Demand went up. But now they've reduced it to B60 (literally diluting the only reason anyone would pay more to begin with)
and increased the price; I think they'll find demand will decrease... Maybe permanently (note that customer satisfaction and loyalty is worth a lot, and they've just thrown that out to try to make a few extra bucks). I'll sure be "voting" that way with my money.