Friday, January 07, 2011

Gas prices decrease - driving costs more

With the new year the sale of 95E10- type petrol started. It's unleaded, 95 octane petrol and can contain up to 10% of etanol. The non-fossil component content will help reduce carbon dioxide emissions from road vehicles. That does not say what happens to emissions from old car engines exploding when the engine is not compatible with the new petrol. Huge balls of flames everywhere, in best hollywood action movie style. It will be interesting :)

Because the alcohol in the petrol is taxed more lightly, the new 95E10 is a little cheaper than the old 95E. About 60% of the price is taxes. But because alcohol is not as efficient fuel as petrol, the motorists will need to buy some more fuel to drive the same distances. The net effect is that driving will be a little more costly.

I went out and rode around and checked the current prices on two stations nearby. Both had the same price, 1,499€/l. That is about $2 USD per liter, or $7,5 per gallon. So you can see why cycling can be an appealing alternative to ridiculously short car trips.

1 comment:

  1. Wow! If gas were $7.5/gallon in Chicago, I think people would mutiny - and we already have the most expensive gas prices in the country due to our taxes.