Fellow Biodiesel Drivers ::
We have all noticed the increase in fuel prices over the last six months. During this period, SeQuential and our network of distributors have not changed margins on biodiesel, meaning that these price increases are from the increased costs for producing biodiesel.
About 40% of the biodiesel SeQuential distributes comes from recycled cooking oil and most of the rest comes from soybean oil grown in the Midwest. This will continue to be the case in the short term, as local production from recycled oil increases; as Oregon production of oilseed crops increases (currently about 10% of our supply); and as technology companies develop alternative feedstocks, such as algae. As demand for soybean oil has increased of late, so has the price. In addition, a major ingredient in biodiesel production is methanol, which increased in price by about 300% since September 2007. We will do everything we can to get price relief.
We understand that these price increases are hard on your wallet, so we want to take a moment to say that we appreciate your dedication to and support of biofuels. We are all in this together, and together, we are growing a renewable fuels industry and bringing better fuel options to Oregon.