Analysis of RIN Credits and Price of Gas Ignores Math and Physics
WASHINGTON, March 27, 2013 /PRNewswire-USNewswire/ -- American Fuel & Petrochemical Manufacturers (AFPM) President Charles T. Drevna issued the following statement in response to an analysis commissioned by the Renewable Fuels Association (RFA) on Renewable Identification Number (RIN) credits and the price of gasoline:
"Another day, another breathless defense of an indefensible program. This study is brought to you by RFA, the same group who claims that using 40 percent of the corn crop doesn't impact corn prices and has promised that cellulosic biofuels are 'just around the corner' every year for the last decade. While continuing to select 'facts' for their story, RFA conveniently neglects to point out that ethanol prices increased about 45 cents per gallon since the beginning of the year.
"Additionally, RFA's cost comparison ignores the fact that ethanol has only about two-thirds the energy content as gasoline. In fact, at today's wholesale price consumers would pay $1.04 more per gallon to drive the same distance using ethanol as they would if they used gasoline. AAA reports that consumers filling up with E85 will pay 55 cents more than regular gasoline on an energy-adjusted basis.
"Perhaps RFA's members would understand markets better if they had to compete rather than having the use of their product mandated."
AFPM, the American Fuel & Petrochemical Manufacturers is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life. AFPM members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support 2 million American jobs.
SOURCE American Fuel & Petrochemical Manufacturers