Oil exec wants U.S. biofuel mandate reviewed as gas prices rise | Reuters

 

By Ayesha Rascoe

The Renewable Fuel Standard (RFS), which calls for increasing amounts of biofuels to be blended into U.S. gasoline and diesel supplies, requires refiners to buy biofuel credits, or RINs, from renewable fuel producers to comply with the mandate.

Oil companies have complained about spiking RIN costs this year, as the nation nears a point where the law will require use of more ethanol than can physically be blended into the fuel supply at 10 percent per gallon. A broker said RIN prices hit a record of $1.29 on Monday.

"This has led to higher prices and substantial uncertainty in the gasoline market," Klesse said in his prepared testimony. "The RFS needs to be completely redone."

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