I was wondering today, how much of the profits being reported (demonized) by “Big Oil” comes from government mandated and subsidized ethanol? How much extra profit can be attibuted to regional blends that decrease the supply and decrease competition? These are good questions that those who want the government to solve the rising prices of gasoline.

UPDATE:

An analysis shows that ethanol profits are at at an 8 month high

Citigroup Global Markets analyst David Driscoll said in a research note that average distilling margins were about 18 cents per gallon as prices for ethanol held at about 8-month highs (LINK)

I’m betting that this margin does not include subsidies.

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