I don't think anybody counted profit in the methanol supply chain or fuel taxes into this.
“Given that a gallon of gasoline now costs $3, then methanol costs ($1.6/67%)=$2.5 and is cost competitive even in a mix with gasoline, but not by a lot.
I don’t think anybody counted profit in the methanol supply chain or fuel taxes into this.”
You got your numbers wrong. Zubrin says that methanol currently sells for $.80 and he goes on to divide that number by .50(to account for methanol’s lower bang for your buck than gasoline) to come of with the $1.60 figure. So he already factored that in and at an even lower rate than you did. Now if we use your figure of .67 and divide that into $.80 for the current price of menthanol then we come up with $1.19 per gallon comparable price of methanol to gas’s 3 bucks per gallon.