SubsidyEye

Ethanol Stocks: Six Reasons To Be Cautious

This is an excellent article, and you are right to point out the difference between the cost of producing gasoline and its price. Of course, to independent gasoline refiners, the difference between cost and price is pretty small, as they, too, must procure their feedstock (crude) at the market price. Perhaps that is what Mr. Khosla means.

As for the risk of a cost-price squeeze for ethanol producers, such an outcome is foreseen in our recent study, "Government Support for Ethanol and Biodiesel in the United States", which can be downloaded for free from globalsubsidies.org/ar...;var_mode=calcul