I took the picture below when I was filling up the tank earlier today in Nebraska. Weird, right?
The higher octane gas (“Plus”) costs $0.15 less per gallon than the regular. I thought it was a mistake in the signage, but no. Along with higher octane, the “plus” contained 10% ethanol—the regular was corn-free.
Still, why was it cheaper? I spoke to one native who told me this price differential is pretty recent.
I know—don’t draw conclusions from samples where n=1. But I wonder: could it be the case that with ethanol subsidies under attack from all sides, producers and retailers started passing part of the subsidies along to consumers? That way, they build allegiance for the subsidies at the retail level and can warn drivers how much prices will rise if Congress does the right thing and gets rid of the subsidies.
Any Nebraskans out there to confirm or deny this allegation?