[Diy_efi] Is E85 worth it?

[Klaus Allmendinger]

In Kuwait, I believe it is government mandate that
fuel is sold basically at cost withint the borders of
the country.  Last time I checked, gasoline there was
about 39 CENTS per US gallon.

That just means that in Kuwait gasoline is government subsidized. With crude trading at ~$70.-/barrel last I checked, and at 42 gallons per barrel, what the crude is "worth" in the current market is $1.66 per gallon. 
It's similar to diamonds. They are worth a lot of money because somebody is willing to pay that. From a material standpoint they should be extremely cheap because they are after all just hunks of carbon.
With gas prices here in SoCal around $3.20 /gallon it means the enduser price of the processed product is about 2 times the raw material cost for the manufacturer. That is actually much lower than in most other industries.