Analysis: RFS waiver isn't likely to dent refiners' demand for ethanol

12/5/2012 | Southwest Farm Press

Little can be gained from a Renewable Fuel Standard waiver because refiners have grown to depend on ethanol as an oxygenate and gasoline extender, write Daryll Ray and Harwood Schaffer, director and research assistant professor, respectively, at the University of Tennessee's Agricultural Policy Analysis Center. Moreover, refiners have adapted their distribution systems to take advantage of ethanol, Ray and Schaffer note. "Without a reduction in demand for ethanol by refiners, little would be gained by granting the waiver," they write.

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