Abstract: A method and system for blending and dispensing fuels that makes it easier for a retail filling station (10) to provide blended fuels to its customers and that more effectively encourages customers to purchase the blended fuels. Gasoline and additives such as ethanol are received and stored in separate tanks (12-18) at the filling station. Customers of the filling station are then allowed to select the amount of additive, if any, to add to their gasoline. Once a selection has been made, a proportioner (40) blends the selected amount of additive with gasoline at the time of purchase and then dispenses the blended fuel to the customer.