Categories: News

E85: why have prices soared so suddenly?

In recent weeks, the E85 has increased well. But what is the reason for this sudden surge in prices at the pump?

For some time now, Superethanol, also known as E85, has been a real hit with motorists. And for good reason, it has many advantages, starting with its price, well below that of conventional gasoline. A rate still below the 1 euro mark, due in particular to its composition, with 85% ethanol, against only 10% for the unleaded 95 E10 that we know well. In addition, E85 is also more environmentally friendly. In short, it has everything good, and its only real flaw is its slightly higher consumption. Praised for its price, this fuel has experienced a real leap in recent months.

A rising price

Yes, but now, for the past few weeks, the price at the pump has risen sharply. Displayed at €0.76 a year ago, it is now set at €1.12 per litre. A historic increase of around 47.4% in just one year, while E85 has never exceeded €1. But then, what explains this increase so strong and above all, so sudden? Well you have to go and look on the side of the ethanol price, which also increased. The latter is indeed “sold on annual contracts for a volume determined between the buyer and the seller”. As a result, the price hardly varies over a year, unlike gasoline and diesel. The buyer and the seller agree on a price valid for one year.

Read also :
Ethanol: Everything You Need to Know About E85 (Box, Price, Benefits, etc.)
Three Tips to Pay Less for Fuel at the Pump
Fuel Prices: The Government Does Not Want To Help The French Anymore

A tariff shield

This mode of operation then acts as a shield for motorists. As explained by Sylvain Demoures, secretary general of the National Union of Agricultural Alcohol Producers (SNPAA), interviewed by Auto-Moto.com, “ in 2022, consumers were partly shielded from costs by the year-before annual contracts, established in 2021, before the war in ukraine“. It is therefore logical that prices should rise so suddenly in 2023. Let’s hope that the following year will be a little less catastrophic…

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