GASOHOL PRICING AND ALLOCATION

To provide incentives for the production and marketing of gasohol, DOE proposes either to amend pricing and allocation regulations for gasohol and the unleaded gasoline used as a blend stock, or to decontrol both product. The proposals (Federal Register, May 22) would assure unleaded gasoline for gasohol production to any firm with consistent access to at least 800 gallons of alcohol a month. Gasohol producers would have to submit gasohol marketing plans and DOE could limit assignments of unleaded gasoline for gasohol production if regional supplies of unleaded gasoline were adversely affected. Alcohol made from petroleum rather than grain or other biomass is excluded from the program. DOE's proposal also discourages the use of petroleum or natural gas as boiler fuel in producing alcohol. Under current regulations most refiners are required to sell gasohol at the selling price of unleaded gasoline, even though gasohol is a higher quality product and more expensive to manufacture. The proposed amendments would designate alcohol as a separate type of gasoline so that refiners may recoup all the costs associated with producing gasohol in its selling price. The DOE proposal would also increase the fixed markup that gasohol retailers and wholesalers are allowed in calculating their prices. As an alternative, DOE is proposing to exempt gasohol and the unleaded gasoline component of gasohol from all pricing and allocation regulations, allowing gasohol blenders to distribute their product at whatever price the market would allow, so long as they adhered to their marketing plans. (Author)

• Corporate Authors:

  Department of Energy

  Office of Consumer Affairs
  Washington, DC  United States  20585
• Publication Date: 1980

Media Info

• Pagination: p. 35

Subject/Index Terms

• TRT Terms: Cost allocation; Deregulation; Exemption; Gasohol; Gasoline; Incentives; Policy; Pricing; Unleaded gasoline
• Old TRIS Terms: Allocations; Lead free
• Subject Areas: Geotechnology; Highways; Materials; Policy;

Filing Info

• Accession Number: 00315376
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 11 1980 12:00AM