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  #1  
Old 06-24-2008, 01:50 PM
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grrr, why is biodiesl cost so high...?


ok, so we are getting spanked on diesel prices.
Can anyone explain to me why biodiesel has been inflated just the same, to continually cost more than regular diesel?

seems like gouging to me. vegetable oil has not gone up in price like petroleum.
even the used oil folks are jacking up their prices. any excuse here other than greed?

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  #2  
Old 06-24-2008, 02:01 PM
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China is buying up all the Chinese food oil. They also made a deal with all the fast food chains to buy their oil...?

Exxon is veggie oil and feeding it to sick whales?

Aliens?



All I know is the price of my local B100 guy is now on par with D2
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  #3  
Old 06-24-2008, 02:01 PM
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Quote:
Originally Posted by Jimmy Joe View Post

ok, so we are getting spanked on diesel prices.
Can anyone explain to me why biodiesel has been inflated just the same, to continually cost more than regular diesel?

seems like gouging to me. vegetable oil has not gone up in price like petroleum.
even the used oil folks are jacking up their prices. any excuse here other than greed?
half the corn belt is under water. my guess is it isnt going to come down soon
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  #4  
Old 06-24-2008, 02:03 PM
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Bio users are willing to pay a premium; until that changes, the costs will remain higher than D2 regardless of the economics of Bio.
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  #5  
Old 06-24-2008, 02:08 PM
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Originally Posted by TMAllison View Post
Bio users are willing to pay a premium; until that changes, the costs will remain higher than D2.
That is changing. Folks I know are disgusted with price gouging; here on the West Coast, dino-diesel is $4.75 and up, BD is now $5.35 and up.

We were always willing to pay a little more, but if the profiteers are going to scam several $ per gallon off of people's environmental concerns, they are gonna lose them; now that it is getting really expensive to drive.
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Old 06-24-2008, 02:17 PM
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here is how one such company explains it:

Thursday, February 28, 2008
The price of biodiesel
Fellow Biodiesel Drivers ::

"We have all noticed the increase in fuel prices over the last six months. During this period, SeQuential and our network of distributors have not changed margins on biodiesel, meaning that these price increases are from the increased costs for producing biodiesel.

About 40% of the biodiesel SeQuential distributes comes from recycled cooking oil and most of the rest comes from soybean oil grown in the Midwest. This will continue to be the case in the short term, as local production from recycled oil increases; as Oregon production of oilseed crops increases (currently about 10% of our supply); and as technology companies develop alternative feedstocks, such as algae. As demand for soybean oil has increased of late, so has the price. In addition, a major ingredient in biodiesel production is methanol, which increased in price by about 300% since September 2007. We will do everything we can to get price relief.

We understand that these price increases are hard on your wallet, so we want to take a moment to say that we appreciate your dedication to and support of biofuels. We are all in this together, and together, we are growing a renewable fuels industry and bringing better fuel options to Oregon."

So half the oil they use is not impacted at all by food oil prices. Then I find this: "The soybean oil that can make up to about 80% of a typical plant's production costs is approaching record prices, at a time when the soybean crushing industry is almost swimming in a record supply of oil.

That's right. Near-record prices. Record stocks. If that doesn't make economic sense to you, it doesn't to a lot of people in the industry..." (http://www.agriculture.com/ag/story.jhtml?storyid=/templatedata/ag/story/data/1178843659009.xml)

Sniff sniff, i smell something fishy...
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Old 06-24-2008, 02:22 PM
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Supply and demand, market economics. If you'll buy something from me for $1, why should I only charge you .90??

I spoke with 2 folks at commercial biodiesel suppliers last week, they both said that our federal govnt is giving $1 gallon tax credit for biofuel exported to Europe. Thus making it harder to get here at home, and raising prices. 67% of USA biodiesel is going to Europe.
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Old 06-24-2008, 02:23 PM
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A good chunk of our BD production is being shipped to Europe as well. The way the various tax laws are set up, a US producer can get US tax breaks/credits makings it then ship it to European countries that give incentives for selling BD in the country. The tax breaks wind up being bigger than the cost of shipping across the Atlantic.

One more example of how government can short circuit the free market without really helping the taxpayer.
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  #9  
Old 06-24-2008, 03:11 PM
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Quote:
Originally Posted by Jimmy Joe View Post
That is changing. Folks I know are disgusted with price gouging; here on the West Coast, dino-diesel is $4.75 and up, BD is now $5.35 and up.

We were always willing to pay a little more, but if the profiteers are going to scam several $ per gallon off of people's environmental concerns, they are gonna lose them; now that it is getting really expensive to drive.
I got a tank of B99 recently in San Jose; was surprised it was $5.70 a gal when D2 was $5.15 or so. Their bio is made from rapeseed oil which i understand isn't a foodsource. They've undoubtedly expirienced increased manufacturering and shipping costs, but I doubt that is what was responsible for the +20% cost increase since the last time I purchased there. I'd use Bio if it were competitive in cost but even though all my commute fuel is purchased by my work I cant justify paying a premium for something providing 10% less mpg's.
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  #10  
Old 06-24-2008, 03:29 PM
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Originally Posted by TMAllison View Post
I'd use Bio if it were competitive in cost but even though all my commute fuel is purchased by my work I cant justify paying a premium for something providing 10% less mpg's.
Ya, that is my point. Biofuel is getting a black-eye over this price gouging. Less folks are gonna use it, and who can blame them? When all along we have paid a premium for BD, now the suppliers are just getting greedy, this is an insult.

Charging .75 cents more per gallon when the fuel is already over $5 a gallon is shameful. An embarrassment to the movement.
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Old 06-24-2008, 03:46 PM
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I get Bio-D also, that is made from WVO. According to the processor, the people who take, steal, suck-n-run, etc. also cause part of the problem. The WVO delivery co now charges more, and delivers less. Couple that with increased cost of methanol, and it is cheaper to run Dino. The WVO Bio-D is still cheaper than SVO Bio-D.
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  #12  
Old 06-24-2008, 03:53 PM
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Just got 10 gallons...for $55

They seem to always be 75 cents higher...

I'm sure they could completely undercut the petro-diesel prices, however, this stuff sells pretty quick around here, regardless. Somebody's gotta make money, right?

Oh...and random thought...my car smells like lo mein! Ha! Great!
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  #13  
Old 06-24-2008, 04:52 PM
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i guess my town is an anomaly, but in Tucson b99 has been 20-30 cents cheaper per gallon than petro ever since i started using it last year. the supplier here says it is 100% virgin soy. still, the fact that it is diverting crops away from food has me investigating making wvo biodiesel at home. any websites you guys can recommend for getting supplies and learning methods for this?
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  #14  
Old 06-24-2008, 04:57 PM
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Glad to hear some distributors have some integrity out there.
This is a great sight, referred to as the Maui board:
http://biodiesel.infopop.cc/eve/forums/a/frm/f/419605551
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  #15  
Old 06-24-2008, 11:30 PM
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Last time I fueled a diesel, I paid about 24 cents a gallon less for B20 than the station around the corner was charging for regular diesel.

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