Dave, Good question. There's an increasing amount of palm oil coming in from South America, priced *very* aggressively. And then there's PWVO as a secondary source, priced at $1 or thereabouts in low to moderate quantities (tanker loads), plus $.50-.75 to process per gallon. Lee
_____ From: dave walton [mailto:[EMAIL PROTECTED] Sent: Monday, February 06, 2006 11:45 AM To: [EMAIL PROTECTED]; Mercedes Discussion List Subject: Re: [MBZ] Truckers fight biodiesel mandate How do you come up with $1.75 given the current spot price of Refined Soy Oil? Futures are even worse. -Dave Walton On 2/5/06, Lee Levitt <[EMAIL PROTECTED]> wrote: Mitch writes: > You seem to think that the price of bio stays constant while > the price of dino goes up. Three years ago, bio was $1.70 > while dino was $1.40, both fully taxed. One might have > thought demand for bio would go through the roof when dino > hit $2.50, but it's not happening. Biodiesel is completely supply constrained. Until that's fixed it's going to be a fringe fuel. Once the Big Guys can count on quality and quantity, you'll see it regularly at truck stops. Then we'll see how closely the price tracks dino. There's no reason why it should, except that it can. The true cost of B99 at the pump, factoring in manufacturing costs, transportation, fuel taxes and credits, is in the neighborhood of $1.75. Anything over that is pure profit. If diesel goes to $4/gallon, the only thing that will increase the price of B99 is the greediness of those distributing it. B100, by the way, comes in at $2.75. There's a $.99/gallon tax credit for cutting it to B99. Your tax dollars at work. Lee '93 300D 2.5L 182K _______________________________________ http://www.striplin.net For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://striplin.net/mailman/listinfo/mercedes_striplin.net
