Sorry, Wall Street Journal: Renewable Fuel Lowers Gas Prices
Posted 22 July 2013 in
In its new editorial, the Wall Street Journal is concerned you might be feeling some extra pain at the pump:
The summer is high driving season, so $4 gasoline in many parts of the country will add to the cost of family vacations.
And we couldn’t agree more. As they concede early on, the price of gas is mostly set by global supply and demand. But when the WSJ goes on to claim that the Renewable Fuel Standard is driving prices up even more, that’s when their argument fallsl apart. Renewable fuel actually lowers the price of gas, plain and simple.
Here’s what the WSJ gets wrong:
- The so-called blend wall is a fabrication, essentially the oil industry’s attempts to evade its responsibilities under the Renewable Fuel Standard. E15 fuel has been extensively tested and is ready for sale, and misinformation about its safety or efficiency only confuses consumers (who we know want more renewable fuel options when they fill up).
- The RFS and its associated “RIN credits” have not been a factor in higher retail gasoline prices, according to an analysis conducted by Informa Economics, Inc. In fact, the study found ethanol costs significantly less than gasoline at the wholesale level and is reducing pump prices for consumers across the country.
- Renewable fuel and the Renewable Fuel Standard are helping reduce carbon emissions. In 2012, the use of renewable fuel slashed greenhouse gas emissions by 33.4 million metric tons.
Remember this: as long as the WSJ continues to take its talking points straight from the oil companies, we’ll be here to make sure you’re getting the facts.