Here is my take… Get rid of the ethanol program! (Do read the whole article)…
“The price of the credits has skyrocketed this year, amid complaints from fuel suppliers that they are being forced by the Environmental Protection Agency to blend more ethanol than consumers or car makers are willing to accept.
The EPA has raised the required ethanol amount to 10.5% of total fuel as required by legislation. But auto makers argue that anything above 10% is potentially damaging to some engines, and consumers have been slow to embrace the more ethanol-heavy blends.
Another area of dispute is the step in the fuel supply chain at which the credits are created. It takes place at the point where ethanol and gasoline are blended. That favors companies that control vast networks of gasoline stations and thus reap more credits than the amount of oil they actually refine into fuel, while disadvantaging smaller refiners without as much of a retail presence.”
The link is here: http://www.wsj.com/articles/big-oil-companies-reap-windfall-from-ethanol-rules-1477564201
Leave a Reply