Jump to content
Sign in to follow this  
Fuelinggood

Happy Holidays!

Recommended Posts

I just wanted to reach out and thank everyone for their continued support of E85prices.com, this forum and the mobile app. We have yet another update to the app coming soon, might be the first week of January with the holiday and end of the year, but some additional tweaks to make it even better. In 2018, we will turn our focus to the website, and continue to make it better for reporting, user interaction and data collection. As always, we welcome all ideas, and will do our best to incorporate what we can when we can.

 

Happy Holidays!

 

Robert

RFA

Share this post


Link to post
Share on other sites

Today’s smaller, independent refineries do not blend on site. Big oil companies and gas station chains in turn game the system by building their own blending facilities and stockpiling credits that they sell back to refineries at artificially high prices.​

 

This is the issue I am concerned about.   Change this policy so the credits can not sold back at artificially high prices.   Thus--lower ethanol prices?

Share this post


Link to post
Share on other sites

I can guarantee that most retailers do not have the volume of RINs to manipulate the market, and there are really only so many players. Less than 150 obligated parties by most accounts. I am all for more transparency in the RIN market, and we have publicly supported that too.

 

But, I don't understand the logic, although I hear it often. How would lowering the price of a RIN lower the price of ethanol, or the price at the pump? Today you are seeing some of the most favorable economics for higher blends of ethanol like E85. The price differential is more than what the gasoline and ethanol markets alone are providing, and that is solely based on the RIN and its value. Independent refiners have had 12 years now to figure this out and some have done it and quite well. Others have hedged that they would be successful in repealing or reforming the RFS, and that simply hasn't happened. They are recouping the cost in other ways, even they admit that. If you want the price of E85 to go up, capping RINs is definitely the way to do it, but in my opinion it won't sell any more ethanol. We have shown over and over and over that higher RIN prices have translated to savings at the pump, especially for those using this website.

 

Robert

RFA

Share this post


Link to post
Share on other sites

How the oil industry is manipulating the RIN market: “That oil companies are willing to pay $1 or more for a RIN, just to avoid buying ethanol at 70 cents per gallon less than gasoline and offering consumers safe, tested, and affordable blends such as E15 and E85, should tell Congress everything it needs to know about the RFS: it is needed now, more than ever. The lack of transparency in the RIN trading marketplace leaves open the possibility that unscrupulous traders or even oil companies could create skewed transactions for the purpose of manipulating the RIN market for financial gain or to make a political point​.    

 

This is the concern.

 

 

 

Share this post


Link to post
Share on other sites

I understand the theory, and said we support RIN market transparency. That said, we have never blended more ethanol than today and every year is bigger. This year saw the largest growth of E15 and E85 on record, and those gallons have truly not been realized yet. Minnesota is opening an E15 station a day, as an example. 2018 doesn't look too bad either with the extension of USDA's BIP Program for many states, and other infrastructure development efforts. Wayne's move to E25 standard dispensers, slow, but steady movement on an RVP waiver, and thousands seeing these fuels for the first time is good news. 

 

What Congress and EPA ultimately sees is that the obligated amount of ethanol prescribed by the RFS to be blended is being blended. I don't understand why we would care who is doing the blending if we just want more ethanol in the marketplace.

 

Robert

RFA

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×