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Oil Refining Trade Group Asking for Help with Rising Costs

Dan Biofuels/Energy, Economy

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(NAFB) — The price of renewable fuel credits in the U.S. hit new multi-year highs this week, and that has an oil refining trade group asking the White House for help in stabilizing the industry. Prices for the Renewable Identification Numbers have climbed all year as the costs of feedstocks like soybean oil continue to climb higher.

Reuters says the American Fuel and Petrochemical Manufacturers group sent a letter on Monday to the Environmental Protection Agency saying that uncertainty about blending obligations for 2021-2022, which have been delayed since missing a November 30 deadline, is contributing to the rising cost of RINs. The group says the high RIN prices threaten the viability of refiners already hard-hit by COVID-19s effect on fuel demand.

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Renewable fuel credits for 2021 were trading at $1.43 each earlier this week, the highest price since 2013.

Also, in the letter to the EPA, the group is asking the agency to finalize proposed extended compliance deadlines for the RFS and urging the EPA to consider the demand destruction brought on by COVID-19 as it decides on the blending requirements for 2021.

(From the National Association of Farm Broadcasters)