AFC’s Cost Comparison Calculator
Whether you are currently blending or considering to incorporate blending into your business, being aware of your current or potential margins is a top priority. The AFC Cost Comparison Calculator can give you an estimate of your potential margins with just a few pieces of pricing information:
Calculator Field Definitions
- RIN Equivalence Ratio: The standard ratio for ethanol is 1.0 whereas biodiesel is 1.5.
- RIN Value: The dollar value of a RIN. This pricing information may be available from your supplier, but can otherwise be purchased through price-reporting agencies such as OPIS.
- Clear Price Per Gallon: The price of neat gasoline, diesel, or heating oil.
- Alternative Fuel Price Per Gallon: The price of B100/B99 or E100.
- Alternative Blend %: The percentage of alternative fuel being used in the blend. For example, 11% should be used for a B11 blend.
- Biodiesel Tax Credit: The dollar value for the biodiesel tax credit. This value can range from 0 – $1.00 depending on any agreements you may have with your supplier
Interpreting The Results
- Clear Gallon Cost: The price-per-gallon of clear fuel that was provided to the calculator.
- Blended Gallon Cost: The calculated price-per-gallon of blended fuel based upon the information provided.
- Price Differential: The price difference between the clear and blended gallon cost. Note: A negative number represents a more advantageous fuel cost for the blended product.
The calculator below should only serve as a general estimate on your potential fuel margins. Some factors such as transport cost are not taken into consideration. For a more in-depth look at your potential margins, please consider reaching out to AFC to schedule a consultation.
The management and marketing of RINs plays an integral role in the fuel blending process. AFC’s RIN Management Application can assist with handling your RINs from the moment they are purchased until the time comes to sell them.