Study Shows How Big Oil Rigs the System in St. Louis

In E85, Ethanol by Cathryn

Big Oil continues to rig the system. Using its stranglehold on infrastructure, it uses pricing strategies to edge out ethanol at the detriment of consumers’ pocketbooks and the environment.

A study recently conducted by the Renewable Fuel Association in the St. Louis area highlighted this point quite clearly.

The study looked to see if anti-competitive pricing strategies were being employed to discourage E85 sales in this unique market, where the only stations offering the fuel are owned by one of the “big five” oil companies. Less than shockingly, the study found that E85 sold for one percent more than E10 on the retail market despite being priced 12 percent below E10 on the wholesale market.

To read the full study, click here.

The results show clearly how some gas companies and their franchised retailers strategically price E85 to discourage consumers from using the renewable, domestically produced biofuel. Big Oil has grown so good at what it does that, in many cases, they manage to make consumers to feel negatively toward E85 at the same time they continue to take choice out of their hands.

Does this Machiavellian plan end there? Of course not. Big Oil is better than that.

The pricing strategy they designed to ensure that affiliated refiners cannot meet the blending requirements outlined in the RFS provides them with data to undermine to use when arguing against the statute. The RFS was designed to benefit Americans. Big Oil has orchestrated an effort to ensure it fails and then, in turn, to cry out as if they are being asked to do something unreasonable.

It seems what is unreasonable is acting as good corporate citizens and in the best interest of all citizens, not creating workarounds to evade laws and continue to hold us over their barrels.

Find out what you can do to stop Big Oil from rigging the system by clicking here.