1. THE SHIFTING FUEL LANDSCAPE
Change is inevitable, key retail considerations for alternative fuels like E15

2. TIMES ARE CHANGING
Significant consumer shifts are occurring in the United States.
Demographics are shifting towards older consumers that drive less
and towards younger drivers that don’t currently own or in some
cases don’t even want to own automobiles.
There is much media attention paid to the next wave of auto
technology; electric, CNG, hybrids, hydrogen. They all garner a
great deal of media attention whether real or imminent. However, odds are, like all market
trends, the shift in fuel retailing will likely be more subtle over the next decade.
This paper is intended to identify some of the market shifts taking place that garner little
attention but added together will have a significant impact on fuel retailers in the
foreseeable future.
THE SHIFTING FUEL LANDSCAPE
Learn More at www.EthanolRetailer.com
GOVERNMENT REGULATIONS;
READY OR NOT?
Government regulations are a part of life in the fueling retail world.
Some of the regulations proposed or nearly finalized will make it an
even more competitive fight for consumer business.
Most people are aware of the increasing CAFÉ standards required for automotive manufacturers
to meet in the near future. But what most people don’t consider is that the 2016 requirement of
35.5 mpg is a 47% increase over the 2012 target of 24.1 mpg. By 2025, auto manufacturers must
meet a target of 55.4 mpg, or a 100% increase vs. 2012!
Though implementation of these new standards will take time, eventually CAFÉ affects will be
felt through decreased consumer demand for fuel. Making the retail landscape even more
competitive.

3. DO CONSUMERS CARE ABOUT
WHAT’S IN THEIR GAS?
A recent nationwide poll conducted by Carbonview research took
a closer look at consumer attitudes towards ethanol in their gas
supply. With nearly 1,000 interviews completed, less than 30%
of those polled knew ethanol was in the fuel they currently purchase.
When pressed further, 19% of consumers surveyed had strong positive feelings about ethanol
while less than 1% had negative feelings about ethanol.
ENGINES CHANGING AND
A WORD ABOUT OCTANE
In order to comply with government changes, auto manufactuers are
deploying a litany of new engine technologies. One move, though
very prevalent, is receiving little coverage in the main stream press.
Quite simply, downsizing engine size, increasing compression ratios
and turbo chargers are resulting in cars that not only deliver better mileage but acceptable con-
sumer performance.
The fuel for these high performance engines will need to change in order to optimize perfor-
mance and mileage. Octane is a key component of that change. Given ethanol’s 113 octane
rating, it is currently the lowest cost octane additive by a factor of close to 300%.
Given engine changes, regulatory changes like Tier III and CAFÉ standards, the stage is set for
higher ethanol blends like E15 and even E25 having a much larger role in fuels.
THE SHIFTING FUEL LANDSCAPE
Learn More at www.EthanolRetailer.com

4. WHAT DO CONSUMERS
CARE ABOUT?
No surprise, in the same Carbonview consumer survey,
consumers again stated they are simply interested in finding the
least expensive fuel that their car can operate on. E15 has been
available for three years and by the end of 2015 will be available at
more than 300 major retail locations in more than 19 states. E15
typically retails for $0.05 to $0.10 per gallon less than regular 87.
When told they could save $0.05 per gallon with E15, 49% of the consumers polled stated they
would try E15 while another 42% stated they would consider E15. When told they could save
about $0.10 per gallon with E15, more than 60% of consumers said they would try it while an
additional 34% stated they would consider E15.
The bottom line is consumers care more about savings at the pump.
GENERATE MORE GREEN
WITH E15
Retailers offering E15 to 2001 and newer vehicles are finding early
sales success. Given the typical price advantage of $0.05 to
$0.10 per gallon for E15 consumers are responding with using the
new fuels. Retailers reporting their sales, have seen E15 climbing as
a percentage of total sales from 12% in November of 2014 to more
than 18% in March of 2015.
Some sites are reporting that E15 gallons sold are exceeding gallons of 87 regular now.
THE SHIFTING FUEL LANDSCAPE
Learn More at www.EthanolRetailer.com

5. THE ROAD TO SUCCESS
The only constant we can count on is change. Given shifting
consumer demographics, government regulations, automotive
technologies, oil market shifts and constantly changing consumer
preferences one thing is certain. The fuel market will change in
the next 10 to 15 years.
History will likely repeat itself during these changing times. Those that embrace and drive
change in the fuels market will likely prosper the most.
THE SHIFTING FUEL LANDSCAPE
Learn More at www.EthanolRetailer.com