They’ll say whatever it takes
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They’ll say whatever it takes
Posted 23 May 2013 in
Today, the American Petroleum Institute gathered reporters on a conference call to try and escape blame for what are sure to be record-high gas prices this summer. And while this event was full of API’s typical misdirection, one particular claim stood out to us – that compliance with the Renewable Fuel Standard will cause gasoline prices to increase by 30 percent in 2015. This could not be further from the truth.
The RFS and its associated “RIN credits” have not been a factor in higher retail gasoline prices, according to a new 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.
Underlying API’s claims about the RFS is the idea that there’s a “blend wall” preventing the wider adoption of E15 renewable fuel (which happens to be the DoE’s most extensively tested fuel, ever). Back when the RFS was first passed, oil companies who supported the law effectively pledged to invest in the infrastructure necessary to bring E15 to our gas pumps. But now that they see renewable fuel as viable competition, they’ve done everything in their power to prevent its adoption. That means engaging in frivolous lawsuits, fabricating safety concerns about E15 and discouraging franchisees from carrying the fuel.
The oil companies don’t want to blend more renewable fuel into gasoline because it hurts their bottom line. In fact, it cost them (and saved you) $50 billion in 2012, so it’s no surprise they’re doing what they can to squash the competition. So who benefits from renewable fuel? You do, in the form of lower gas prices, reduced carbon emissions and increased national security. The choice should be clear.
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