Biodiesel for everyone - in Minnesota

Todays news:
On Tuesday, August 23, 2005 Agriculture Commissioner, Gene Hugoson authorized publication in the August 29th edition of the Minnesota State Register that the state of Minnesota has at least 8 million gallons of biodiesel. Pursuant to
Minnesota Statutes 239.77 this will result in the implementation of the state-wide 2% biodiesel fuel use requirement effective September 29, 2005.

So - what will this do to prices in MN? Will it be an excuse to jack them up?

Scott

At 2%, I don't think they'll have a very good argument for raising the price.

To provide a little perspective, there is a station in Apple Valley that is already selling fuel labeled at the pump as B2, at a price that was not very different (the last time I checked) from other diesel prices in the immediate area.

Here in southern Minnesota B2 IS the same as D2, pricewise.
I don't forsee a fluctuation outside of the so-called norm.

If anything, it should make the price go down, shouldn't it? Every gallon of B2 they sell takes 2c out of the 24.4c federal excise tax (unless they're sourcing from animal fat for some odd reason). Just 'cause they have to do it doesn't mean they don't get the benefits.

Of course, 2c on a gallon doesn't even mean a 1% price difference these days.