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Ethanol RIN cap chatter already hurting prices

Ethanol wholesalers say they and consumers are already feeling the impact of a possible RIN cap.

Mike Lewis of California-based Pearson Fuels blends ethanol and sells fuel to more than 130 west coast sites.  He says the RIN prices have already been damaged by Senator Ted Cruz’s efforts to cap RIN prices.  “In the last three months, while this RIN discussion has been happening, RINs have gone from about 75-cents to about 30-to-40 cents today so that is (about) 35-cents per RIN.  That’s brought our wholesale price up 29-cents a gallon, and that’s in the last three months.  And, that’s not even a cap.  That’s just a discussion of a cap.”

Lewis says the consumers are paying more because of the RIN uncertainty.  “A dollar a gallon less than that (price of regular gas) is really appealing to a lot of people, in fact, a lot of our consumers are middle and lower income people and they buy based on price.”

Lewis told reporters Friday during a press conference with the American Coalition for Ethanol that if RIN prices are capped at ten cents, it would raise ethanol blend fuel prices another 25 cents at the pump, making them even less attractive to consumers.