28 Aug '12, 4pm

Waiving RFS will lower food cost per household $3-9/yr, but raise fuel cost by $33-88/yr. Consumers lose! #ethanol

Waiving RFS will lower food cost per household $3-9/yr, but raise fuel cost by $33-88/yr. Consumers lose! #ethanol

Another important factor that may result in greater impacts on gasoline prices, and therefore household expenditures, is octane replacement cost for refiners if ethanol production is curtailed under a waiver. It is well established that many refiners blend ethanol with sub-octane gasoline to increase octane content to the minimum levels necessary for sale at retail. If a waiver of the RFS resulted in less ethanol output, some refiners may be forced to use other, more expensive, sources of octane. Toluene, for example, is an alternative source of octane that is currently selling for 160% the price of ethanol. Another octane source, benzene, has sold for as much as $5/gallon in recent weeks (nearly double current ethanol prices). Using these sources of octane in lieu of ethanol would raise the cost of producing finished gasoline, and those increased costs would be passed on ...

Full article: http://www.ethanolrfa.org/exchange/entry/impacts-of-waivi...

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