And the oil price keeps on rising…

Last month I wrote about how the price of bio-ethanol in Germany had gone up for the first time since I bought my bio-ethanol car, however it is still much cheaper than the prices at the petrol pumps last weekend: around 1,559EUR per litre!

Today those prices look set to rise even more, as the price of oil rises to $135 per barrel!

What is shocking is the fact that this is a 50% increase on the price that I was blogging about only half a year ago.

So where is it going to stop?  How long until we reach the 2EUR/litre price?

Bio-ethanol price rise

I guess it had to happen in the end.  After months of blogging about the price of oil and hence the price of petrol, now the price of bio-ethanol has gone up.

The following sign greeted me when I went to fill up this week:

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So now the price is at 0,949EUR/Litre, but that’s still a lot cheaper than buying normal petrol!

Is bio-ethanol driving up food prices?

Readers in Germany may find this article interesting.  Once again, bio-fuels are being blamed for taking the food out of other peoples’ mouths.

What’s new about the argument this time, is that there is an explanation as to why this is happening.

Normally I hear a straight forward claim, that the production in Europe is taking food out of the mouths of people in Africa – without any thought as to whether the food would have actually been transported to Africa in the first place.

The new claim is somewhat different – due to the bio-ethanol production the price of the raw materials has risen, and that means that aid agencies have to pay more for things such as grain.  This in turn means that they can buy less of it to feed people.

Perhaps more regulation of the system is required so that the aid agencies still get their grain at a reasonable price, without stifling the competition of the bio-fuel producers?

I assume that other types of bio-fuel, eg. from wood chippings, is not affecting these prices and could therefore be a better option?

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