FAQ
What is the ethanol "subsidy"?
The "subsidies" attributed to the ethanol industry is actually the volumetric ethanol excise tax credit, better known as the blenders credit. Ironically, this 45 cent per gallon credit does not go to the ethanol industry, but rather to the oil industry as an incentive for oil companies to mix ethanol into its gasoline. Left to their own devises, most oil companies would not choose to use any renewable fuel such as ethanol because it is not something they produce, even though blending it with gasoline increases octane allowing them to charge a premium for it. At UB, we do not buy pre-blended fuel from the oil companies. Our fuel is blended at each station at the time of purchase. This allows us to pass along the tax credit created for the oil companies back to the consumers reflected in the price of the fuel.
