[rock58seg]

Think of the price you pay for cheap whisky or vodka. $5.00 a quart = $20.00 a gallon. But for commercial alcohol lets say the price is $5.00 per gallon. lets say you use a mixture of $1.50 a gallon gas at a ratio of 9 parts to 1 gas/alcohol, you would have $1.35 gas plus $.50 alcohol = 1.85 per gallon, for the mixture.

[redgolum]

Remember that most of the cost of drinking alcohol is taxes. Fuel grade ethanol is running above $1.10 a gallon on the spot market. Most of the ethanol in California would have been contracted for less months ago.

I work in ethanol (for the time being!). The reason that some places experience higher prices with blended gas is that many refineries don't have the facilities to blend ethanol.