Ethanol Blog
Valero: Gasoline Prices to Spike 10 Cents Gallon due to RINs
Valero Energy, an ethanol producer and gasoline refiner, predicts the increased cost of ethanol RINs would increase the cost of gasoline by 10 cents gallon this year.
Valero estimates D6 2013 ethanol Renewable Identification Numbers, the credits used by refiners, blenders and importers to show compliance with the Renewable Fuel Standard ethanol blending mandates, would increase Valero's costs by $500 million to $750 million compared to costs of $200 million to $250 million in 2012.
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2013 D6 RINs were less than 10.0 cents earlier this year, but averaged nearly 80.0 cents in March. D6 RINs were valued at 68.0 cents on Monday.
The price of gasoline "has to be higher," explained Bill Day, spokesman for Valero. "We will bear that cost to some extent, but we have no intention of bearing it all and will pass it on to consumers."
He said the elevated prices are hitting the East Coast now.
"It will probably hit the rest of country fairly soon if RINs prices stay high," he said.
Myke Feinman can be reached at myke.feinman@telventdtn.com.
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