Illinois C-store Chain to Sell Ethanol Fuel

SPRINGFIELD, Ill. -- Qik-n-EZ, operated by Lincoln Land Oil Co., is phasing E-85, a high-ethanol fuel, into its Ill.-based convenience stores, according to a report by the Ill.-based Journal-Register.

"We hope within the next week to have E-85 at our Peoria (Road) store, maybe within the next couple days," said Grady Chronister, spokesperson for Lincoln Land Oil Co. "We'd like to add it to all our stores, as time permits." Qik-n-EZ pumps containing E-85 will be clearly identified, according to Chronister.

The ethanol fuel sells for significantly less than regular unleaded: At one of the locations where E-85 is already for sale, it was selling for $1.62 a gallon this past Wednesday, while regular unleaded was $2.07, the paper reported. Michelle Kautz, spokeswoman for the National Ethanol Vehicle Coalition said that, on average nationally, E-85 costs about 25 cents less per gallon than regular unleaded.

The main reason E-85 is cheaper than regular unleaded in Illinois is because the state isn't charging certain taxes -- which support roadwork and state police operations -- on the product, said David Sykuta with the Illinois Petroleum Council. "If it catches, eventually it's going to be taxed, and the price will be higher. It'll be interesting to see how it competes on an even playing field," he said.

Illinois Gov. Rod Blagojevich eliminated the state sales tax for E-85 in 2003, to make it more competitive with regular unleaded fuel. Earlier this year, he also earmarked $500,000 to help gasoline outlets throughout the state offset the cost of providing E-85 fuel for customers, as reported in CSNews.

The handful of gas stations in central Illinois currently selling E-85 fuel include Fuel 24 in Taylorville and Mason City, and Qik-n-EZ outlets in Lincoln and Bloomington.