Getting an Answer to the Question: How Much is Biodiesel Cost Per Gallon in 2011?

Regarding one of the most known alternative source of fuel, the biodiesel cost per gallon is the topic most people are curious about. Many people keep asking, How much is biodiesel per gallon in 2011?” Biodiesel costs more than petrodiesel. B100 or biodiesel in its purest form has a selling price of around $2.20 to $2.50 each gallon, excluding taxes. Fuel tax is around fifty cents per gallon. B100 has 100% biodiesel content. B20, a biodiesel blend, is 20% biodiesel and 80% petrodiesel. B20 will cost about 15 cents to 20 cents more each gallon than B100.

How to compute biodiesel cost per gallon

B20 Biodiesel costs : $4.50 x 15% is $0.65

Add: $ 2.00 x 85% is $ 1.70

Sum: $ 2.35

Less tax credit $ 0.15

Difference $2.20

Plus Tax per Gallon $ 0.50

Biodiesel Price per gallon $2.70

There are some retailers that sell B2 blend at exactly the same price as petrodiesel. This is a temporary price scheme that will not be the case in future times. The price of B2 is slightly higher than petrodiesel. Fuel with biodiesel content of 2% has, in reality, a higher price by 1 cent to 2 cents per gallon than petrodiesel. However, if the same price scheme continues, more people will be able to use B2.

The United States Government is convincing the biodiesel trade to come up with a reduced biodiesel cost per gallon The Department of Energy is giving incentives to companies and individuals who are doing studies, research and implementation on the subject. The government is offering the biodiesel industry different subsidies to promote the use of biofuel. The government is bent in teaching the people to use alternative sources of fuel.

The government is giving tax credits for the biodiesel users. They want people to begin a trend on biodiesel fuels. Hollywood stars are riding on the trend and are now into biodiesel conversion. Conversion cost of biodiesel is relatively low as compared to the positive effects to the air we breathe. Biodiesel conversion is the process of having your diesel engine adjusted or modified to be compatible to biodiesel. Some car companies do not cover car repairs that are due to biodiesel conversion.

Biodiesel conversion cost as much $1000++. A conversion kit plus a technician or engineer to do it for you or to tell you on how to go about it are two needed factors. Some drivers do not care about the mechanism of their vehicles and rely on the services of a hired expert.

There are biodiesel engine conversion kits available in the market. They are the do-it-yourself kits that are available and user friendly. They cost an average price of $995 up to $1000++. Some types of biodiesel do not necessarily require conversion kits. The ones who need conversion kits are those who live in extremely cold weather or has vehicles that date way back in 1994. Most cars after that period have been adjusted to use different fuels with the B factor. Using biodiesel fuel will enable us to make the environment a clean one.