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E85: should we expect further price increases? Auto Plus news in your smartphone Auto Plus news in your inbox

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E85: should we expect further price increases?  Auto Plus news in your smartphone Auto Plus news in your inbox

This is one of the most affordable alternatives to diesel fuel and gasoline: bioethanol, or E85 superethanol (as they call it at the gas station). This fuel consists of unleaded 95 mixed with 60-85% ethanolreceived fermentation of vegetable raw materials (rapeseed, corn, beets, carrots, etc.) Because this fuel uses very little fossil fuel, it benefits from favorable taxation in France. So E85 is exchanged at the pump for €1.02 per litre In average ! It also benefits from a free registration document in most departments! We find almost 2,700 superethanol E85 distribution stations in France compared to 1,500 LPG stations. So is this really a bargain?

Fuel is also increasing

first, Like gasoline, the price of ethanol has risen dangerously in recent months : traded on average 0.75 euros per liter a year ago! Overall, its sales volume increased significantly, which shows that it is of increasing interest to the French: +83% between 2021 and 2022, now with a market share of 6.5% (compared to 4% in 2021). . The use of E85 in a thermal car requires first installation of the E85 box.

This is used to change the data that is sent to the computer to adjust the injection system. The main manufacturers of equipment are represented on the market sets from Approximately 700 to 1600 euros (installation included), depending on the model. But now there is a new problem in the conditions of the explosion of prices for gasoline and diesel fuel: will the price per liter of superethanol continue to depend on inflation?

To the increase of agricultural materials and therefore E85?

Unlike other types of fuel, it is not currently discounted to lower prices. Moreover, being is indexed to the prices of agricultural materials and energy carriers, its price can fluctuate very quickly. This applies, for example, to gas (one of the components of the E85 index), which increased by 250% from January to August 2022! In reality, E85 superethanol prices should not experience such a dramatic increase in the coming months. despite galloping inflation: wheat, corn and beet prices are stable. However, what is uncertain is that upcoming negotiations between agriculture and food and/or energy industry professionals, which should revise the prices of agricultural materials. At this point, we still know very little, but according to several observers, we can expect an increase of 10 to 20%…

Read also:

E85: what are the risks of driving on this fuel?

What is the future of superethanol E85 after 2035?

E85: before tax increases?

Author: Quentin Panno
Source: Auto Plus

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