Apr 19, 2022

Canada’s marine industry has a perennial problem with the disparity between the price of fuel at an on-the-water marina and the fuel prices at big-volume highway outlets. This year your customers will probably be paying $1.70 to $2.00 per litre at highway stations and so, what will your fuel dock price be?

It has to be more at the dock for many reasons. We know that. On April 13, the NMMA reported that to hold the fuel prices down in the US, the Biden administration announced that  it will ease restrictions on year-round sales of high-ethanol gasoline in an effort to curtail rising gas prices across the country. 

Reported by the Wall Street Journal on April 12, the announcement will allow for gas with 15 percent ethanol (E15) to be sold between June 1 and September 15. Typically, E15 sales during summer months has been prohibited, in part because of its contributions to air pollution. 

In the US E15 gasoline is prohibited by federal law for use in boat engines and voids many engine warranties.

We know that ethanol in gasoline is a problem for boats due in part to phase-separation, which occurs when the tanks (that need to be vented to the air for safety reasons), get water moisture through condensation because of variations in temperature. As you know, the water binds with the ethanol and settles as sludge in the bottom of the tank. Ethanol has also been known to be corrosive to metal fuel tanks and engine components. 

But, do your customers know that? And, do you ensure that your on-the-water fuel outlets sell only ethanol-free fuel?

If you haven’t already sent out customer communications to explain the issues around ethanol and the cost impact on marine fuel, we suggest it would be a good idea. A customer e-blast to raise awareness of the problem and to explain how your marina is protecting both the safety of boaters and their boat engines should be on your agenda this spring.

Get out ahead of the issue and make sure you are fueling the fun this summer instead of fueling customer annoyance at the record high fuel prices we are all facing with the war in Ukraine. Make sure you remind them of that as well!

Andy Adams Editor