Rising costs have increased pressure to change US biofuel mandates this year, raising the volume from refiners including Valero, PBF Energy and other acutely affected fuel businesses seeking changes to the program.
Refiners have increasingly pointed to profits enjoyed by larger retailers. The strategy shifts their complaints a little closer to a space drivers and other customers understand – the pump – and benefits from including hardships faced by much smaller businesses.
Retailers had not said much in response until a few made time for me in late August.
Retailers dispute refiners’ proposed RIN changes
Houston, 29 August (Argus) — Proposed changes to federal biofuel mandates would slash liquidity for compliance credits without improving prices for consumers, fuel retailers tell Argus.
Vocal refiners facing rising costs have warned that the Renewable Fuel Standard (RFS) encourages market manipulation more than biofuel blending. But retailers including Murphy USA, a frequent target of refiners this year, said the complaints were misdirection.
“For an industry whose margins have collapsed by 50pc, it’s disingenuous to point to this, when I think the bigger issues are staring them in the eyes,” Murphy USA chief executive Andrew Clyde said.
The rest at Argus Media – http://www.argusmedia.com/news/article/?id=1302590