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Originally Posted by shakran
That's because now you'd have regular, midgrade, premium, E85, and now we're adding E70. Some of the gas that used to be in the regular, midgrade, and premium pumps is now going to be diverted to the E70 pumps. You're cutting the supply of gas. You still have to maintain a large supply of actual gasoline because you're not going to get all the people with 3 or more year old cars to convert. And since we're not increasing the gas supply, but we are increasing demand on that gas into yet another boutique fuel, we're making the price of that gas raise.
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I don't think your point really follows logically. Especially the part about cutitng gas supply. There are going to be a finite number of cars and a finite amount of fuel pumped into them regardless of whether every car in the country ran on 87 Octane Unleaded or whether there were 20 types of petro. How does this change the bottom line supply? If there are 1000 people driving cars that take unleaded, and you have 87, 89 and 91 octane, then 200 of those people start driving on E85, and then another 50 start driving on E70, that's actually an INCREASE in petro supply compared to consumption because the E70 and E85 fuels use less actual petro.