Trends and Factors Affecting Ethanol Prices

The growth in the ethanol industry is very promising and directly influences the price of ethanol. Over the years, E85 ethanol prices have fluctuated greatly, sometimes enjoying sharp spikes and, at times, suffering major declines. The prices also change based on demand, supply, and location. But although the prices differ per state, the prices maintain a close distance to a global average.

Historically, from 2005 to 2011, ethanol prices averaged at $2.04. In May of 2005, it hit bottom at only $1.16. However, in 2006, it reached a historic peak at $4.23. Ethanol prices today, as of December 28, 2011, average at around $2.23 per gallon.

For E85 ethanol fuel blends, the average price is $3, which is slightly lower than the average $3.30 price of gas. Prices differ per state, though, with California, Maryland, and Oregon having the highest at $3.29, $3.31, and $3.33 respectively.

In California and Oregon, E85 is cheaper than gasoline, which sells for $3.72 and $3.34 respectively. In Maryland, however, gasoline is a bit cheaper at $3.29. Other ethanol fuel blends are often more expensive than E85, though, but cheaper than gasoline alone. For example, in Michigan, E85 sells for $2.89 per gallon, gasoline for $3.55 per gallon, E50 at $3.09, and E30 at $3.29.

Ethanol Price Chart

Ethanol price charts can tell you how much ethanol costs in various states and in different blends. While some charts list down current prices, you can also see charts that show the monthly or annual trends of ethanol prices.

Ethanol historical prices charts, on the other hand, can give you a bird’s eye view of the general trend of ethanol prices. You can see periods of steep inclines and sharp declines, which sometimes coincide with major developments and changes in the fuel industry.

Ethanol Operating Cost vs. Ethanol Prices

If you are interested in investing in the ethanol industry, it is important for you to compare the ethanol cost per gallon to the ethanol operating costs for each gallon. If you supply ethanol and are determining the right price to charge, you need to take these costs into consideration as well.

Ethanol operating cost is divided into the costs of the materials used in production, such as corn, and the cost of labor and equipment. Thus, the purchase price of ethanol should be enough to cover all of these.

What Historical Ethanol Prices Tell You

When you observe the movement of historical ethanol prices, it is easy to see that the industry is a very promising one, albeit the infallible presence of risk. Historical price trends show that ethanol has become a steadily growing commodity. This is why historical ethanol prices are very important resources for any investor interested in the ethanol industry, either through ethanol ETFs or by entering the manufacturing market.