Soaring Renewable Fuel Costs Spark New Fight over Ethanol Mandate
< < Go Back
Renewable fuel credit prices rose to record highs recently, reigniting the debate over repealing the federal government’s ethanol mandate, says the Daily Caller.
– For months now, refiners and the petroleum industry have been pushing for the full repeal of the Renewable Fuel Standard (RFS), which requires that 13.8 billion gallons of ethanol be blended into gasoline this year and 14.4 billion in 2014.
– However, refiners are hesitant to blend more than 10 percent ethanol into the fuel supply over safety concerns.
– Skyrocketing renewable fuel credit prices indicate that the industry is nearing the limits of what it can blend, or the “blend wall.”
As renewable fuel credit prices increase, refiners are burdened with higher costs.
But the ethanol industry contends that its product does not drive up the cost of fuels, instead making them cleaner and cheaper.
Read More:
Rss Feed