Eli5 why is isopropyl alcohol so much cheaper than ethyl alcohol?
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It’s a combination between taxes and the fact that alcohol is a product with many different ingredients. Isopropyl alcohol is not drinkable at all, and as such it doesn’t matter who makes it or how it’s made. At the end of the day, it’s still isopropyl alcohol. Extra contents are frowned upon, since isopropyl alcohol is a medical supply, a cleaning product, and a chemical used in scientific experiments.
But, with alcohol you *can* drink, there’s a lot that goes into it and different or extra contents are often celebrated. Certain alcohols are aged for years in very specific barrels with very specific conditions, certain beers are crated with specific ingredients, certain tequilas need to be made with very specific types of Agave, some spirits can only be made in certain parts of the world, etc. There is a ton of craftsmanship that goes into creating alcohol you can drink. That’s where the majority of the cost difference comes from.
But, taxes also add a lot of cost. As always, governments want their cut, but alcohol is one of those products that includes an extra type of tax called an “Excise Tax”. An Excise Tax is a type of extra tax that is applied to a specific good or or service like gas, cigarettes, and of course alcohol. It’s just another way for governments to make money!
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