Marathon Oil in Garyville notified it's distributors on June 6th that effective June 21st this month, they will NO LONGER PROVIDE ethanol FREE gas from their Garyville Refinery. Guess they too fell for the $0.45/gallon tax credit and has decided to blend ALL of it's fuel from Garyville as ethanol gas.
That's real bad for our sources of ethanol FREE gasoline. Marathon was one of the largest suppliers of ethanol free gas in not only south Louisiana but also north Louisiana. I spoke with a retail station owner in the Shreveport area about two weeks ago and he told me that he was notified that effective the end of June he was not going to be able to get ethanol free gas from the Arcadia terminal. I'm sure this terminal is supplied by Marathon by pipeline.
Not only will Marathon's decision hurt boaters and fishermen in finding a source of ethanol free gas, but many small grocery and convenience store owners have told me that if they cannot continue to get ethanol free gas they will stop selling gas altogether as they cannot afford the high cost to clean their tanks and install new electronic water monitoring equipment and expensive filters to sell ethanol gas. The average cost to get fuel tanks ready to sell ethanol gas is between $1,500 to $2,500 per tank, depending on the size of the tank. Marathon's decision will hurt small business people also.
I spoke with Waguespack Oil today and they indicated to me they will try to get ethanol free gas from the Murphy Refinery in Chalmette, but it will likely be 5-10 cents/gallon higher due to the longer distance they have to truck it. The only other refinery that is still supplying ethanol FREE gasoline in the south Louisiana area that I am aware of is Placid Refinery in the Baton Rouge area. I'm not sure if the Lake Charles area refineries have also yet gone all ethanol. I do know that all Exxon/Mobil, Chevron/Texaco, Shell and BP are 100% ethanol in Louisiana. Marathon going 100% will hurt everyone very badly! All for the almighty $$!
So, we can now add Marathon to the list of refiners Exxon/Mobil, Chevron/Texaco, Shell and BP hated by boaters and fishermen.
I will testify before a State Commerce Committee in Baton Rouge next week to try to make them aware of the growing ethanol free gas problem and hopefully get some support in addressing it. I tried this last year before the Agriculture Committee and ran against a total roadblock (learned they won't dare do anything that in the remotest way hurt farmers). If we cannot continue to find sources of ethanol FREE gas, when 15% ethanol replaces the current 10% ethanol, it will SHUTDOWN the entire marine industry in Louisiana! There is not one marine engine that can operate on 15% ethanol gas, and neither can motorcycles, four wheelers, jet skis, chain saws and lawn and garden tools. We're in for a tough fight fellas.
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