Dinneen: Big Oil's blocking of higher ethanol blends lifts RIN prices

03/7/2013 | EthanolRFA.org/The E-Xchange blog

Oil companies are making the E10 blend wall a convenient excuse for the rise in ethanol renewable identification number prices, which was really brought about by their continuing refusal to accept higher ethanol blends, writes Bob Dinneen, president and CEO of the Renewable Fuels Association. Despite the ample supply of ethanol in the market for blending, oil companies claim they need to buy RINs rather than increase ethanol use to comply with the RFS, Dinneen states. "Ethanol prices remain at a significant discount to gasoline prices. ... Yet, oil companies have so far avoided increasing their use of ethanol, and have instead chosen to stockpile excess RINs," Dinneen notes.

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