As Nebraska celebrates Renewable Fuels Month, a major fuel retailer says higher biofuel blends are gaining traction with drivers because they can lower prices and expand options at the pump. Randy Gard, chief operations officer of Bosselman Enterprises and a member of the Nebraska Ethanol Board, said demand for E15 has grown rapidly as consumers respond to price spreads and greater availability.
Gard said retailers are focused on what customers want, and he argued E15 often delivers a lower-cost option than standard E10 gasoline.
“It’s a big advantage. I’s we’re one of the few industries where we’re crazy enough to put our price sign on a 40 or 60 foot sign and so consumers that we’ve learned will turn left or right for a penny. So when you’re five, ten, in some cases 15 cents cheaper on your higher blended, gasoline products, they’ll consumers will run to those,” Gard told the Rural Radio Network.
A key issue for retailers, Gard said, is whether E15 can be sold year-round without relying on seasonal waivers. He said a permanent federal fix would give companies more confidence to convert additional tanks from E10 to E15 and reduce the uncertainty retailers face each spring.
“It would make a big difference to us because when when spring comes around and based on regulatory statute, unless you get the summertime waivers, you cannot sell E15. You really can’t go what I would call all-in on the product until that year round, legislation is passed. So there’s always a level of uncertainty in the summertime when I’m not the only retailer. All retailers face the same uncertainty every spring. So, boy, I sure would be nice to get that done,” he said.
Gard said he supports E15 legislation that is sponsored by Nebraska Sen. Deb Fischer and Rep. Adrian Smith along with support from the entire state congressional delegation.
On the diesel side, Gard said Bosselman offers biodiesel at some larger fleet-focused locations, including its Grand Island Travel Center. He said biodiesel can work well when blended with conventional diesel, but added that federal tax policy remains important to making the economics pencil out for retailers and customers.
Bosselman also offers a range of ethanol blends, including E15 and, at some locations, E30 and E85. Gard said the company expects to sell more than 15 million gallons of E15 this year, a sharp increase from just a few years ago. He said that growth suggests some drivers who try E15 are increasingly willing to consider higher blends if their vehicles are compatible.
Gard also pointed to Nebraska’s ongoing E30 testing work with state fleet vehicles, saying the results so far have shown no major problems and have reinforced interest in higher blends.
“We’re in our second session of testing is E30. We tested on state, state patrol car to the all Nebraska fleet vehicles that run on gasoline and with no problems whatsoever. So we’re really high on E30,” Gard said.
Ultimately, he said, retailers will keep offering renewable fuels as long as consumers see value in products that can cost less, perform well and provide another choice at the pump.
Renewable Fuels Month is observed in Nebraska each May and is promoted by groups including Renewable Fuels Nebraska and the Nebraska Ethanol Board. Nebraska is one of the nation’s leading ethanol-producing states, and industry advocates say the annual campaign is intended to highlight the economic and consumer impact of fuels such as ethanol and biodiesel.