Chevron Corp. plans to begin selling fuel made mostly from ethanol in California this summer to test demand, reports the Los Angeles Times. Southern Nevada’s gasoline comes by pipeline from refineries in California, which means the price in both states track very closely.
The new concoction, called E85, is 85 percent ethanol and 15 percent gasoline. That practically inverts the usual proportions and greatly reduces the crude oil component in the price. The trial will begin at three stations.
The announcement has not pleased everyone. “I’m at a loss as to why Chevron would be doing this, unless it’s some sort of PR move,” U.S. Energy Department Economist Anthony Radich tells the paper. “That’s certainly what it sounds like.”
The company says it is a trial to test whether it is viable but the outlook isn’t good. E85 is unprofitable in California now because rising demand for ethanol has pushed prices for the additive above wholesale gasoline, the company says.

