Skip to main content

Star Herald editorial

Ethanol consumers can feel fine about their purchases after rumors of price fixing were dispelled last week. Minnesota Attorney General Mike Hatch released a report reviewing the pricing of E85 during the fall of 2005. Customers and small wholesalers questioned rapid price increases during that season, but Hatch’s investigation found there was no evidence of price fixing.Rather, the price rose with demand and retailers matched the price of the fuel to the price of gasoline.Consumers can be assured that what they’re paying for the fuel isn’t a con. While some aren’t in favor of subsidies the industry receives, it’s those subsidies that helped get the plants up and running.As a side note on the government subsidies, plants built since June of 2000 don’t receive state subsidies. Since 1986, the state has paid $279 million to ethanol plants. The federal government also pays subsidies.We all know ethanol is good for farmers, better for the environment than standard fuel and good for local economics. Buying ethanol supports Rock County farmers who sell direct to the local Agri-Energy plant and the investors who helped start the company. … And we hope those profits are spent locally, since local people have been so supportive of the industry.

You must log in to continue reading. Log in or subscribe today.