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Switching to Ethanol - another snag

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
Here is a short article about one more hurdle faced by small businesses who sell gasoline. I thought it gave an interesting perspective, it also shows the problem of excise taxes at gas stations near the border of a state line. I often am called to testify in front of county and state legislators who are looking to impose higher excise taxes, and I always testify in favor of keeping the taxes at the lowest reasonable amount.

This little article shows just one small part of the problem with Ethanol.
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Switch to Ethanol ‘Too Costly’ for Some Small Retailers
June 12, 2006
TOWSON, MD – Two family-run gasoline stations in Maryland decided to stop selling fuel to avoid the “costly work” necessary for storing gasoline containing ethanol, reports the Towson Jeffersonian.

Cappie Troyer told the newspaper the decision to close her gasoline operation was extremely difficult, noting that her grandparents began selling fuel at the Troyer's Liquors store in 1932.

“I know I made the right decision, but I'm sorry for all my customers,” said Troyer, adding, “I just couldn't justify spending that much money to upgrade, then find out in a few years that I'll have to spend more on something else.”

Down the road, Jon Meadowcroft commented that his decision to close his pumps was also difficult. His father, Joe Meadowcroft, built the station in 1961.

“Selling gas hasn't been profitable for us for a long time," said Meadowcroft. "We sell under 10,000 gallons a month, and that's just not enough to make money.


Meanwhile, two other local independent station owners have decided to endure the costs and make the switch from MTBE to ethanol.


David Lawson, owner of the Prettyboy Market, which operates two pumps, told the newspaper he received his first delivery of ethanol-blended gasoline in May.


“I already made the switch, but it's hard to say if I'll keep selling gas,” commented Lawson, adding, “I absolutely don't make any money pumping gas. I do it for the convenience of the store's customers.”


Maryland Line Service Center Manager Ayda Swartz noted that it cost her about $1,000 to have her tanks pumped and installed with new filters.

“As an independent owner who’s close to cheaper gas just over the state line [because of a state tax differential], we're struggling here,” said Swartz, adding, “We're not ready to give up and have big corporate gas stations be the only ones left. We're hoping local people will support local businesses.”
 
B_Skurka said:
This little article shows just one small part of the problem with Ethanol.

I don't see anywhere in that article that says why they are stopping to sell gasoline. What "costly work" needs to be done? Physical upgrades? (As far as I know E10 requires no modifications.) Paperwork? Everything dealing with the gov and taxes requires headache paperwork.

This sounds more like small operators being squeezed out of business by the big boys, and choosing to use ethanol as reason to complain.

I am not saying that small business being crushed by conglomerates isn't a major problem, but it is a different problem, not directly related to ethanol in the gasoline.
 
Ethanol requires special filtering and you have to start with clean tanks. So if you have tanks in the ground, they must be pumped out, cleaned and then filled with the Ethanol blended fuel. Special filters are installed at the same time. Ethanol absorbs condensation in the tanks, that presents its own set of problems. That is also why ethanol cannot be pumped in pipelines.

I do agree that these folks are just using ethanol as a scapegoat but it is one of the many problems small gas operators face. It also helps to illustrate that ethanol may not be quite as good a solution as many portray. The reality is there is no way to sell it as cheaply as regular gasoline can be sold, at least not currently.
 
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