I saw my first E85 pump in Colorado last weekend. I was shocked to see the price of E85 was way less than regular gasoline. Is this common nation wide? At the gas station I belive it was about $.25 cheaper. Since ethanol is more expensive than gasoline, there are a lot of tax subsidies going into all those E85 fill-ups. This helped put some of the ethanol issue in perspective for me.

Think on an energy/kg basis, you are actually paying more for that fuel, because your milage will fall!(and thus you are required to purchase more fuel to get the same distance)

In Minnesota E-85 is consistently forty cents a gallon cheaper than 87 octane regular. This spread is so consistent among the hundreds of E-85 pumps in Minnesota that I think it is set by the oil companies.