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RINs Not Driving Any Profits: Motiva
(Argus Media) No one profits from credits used to track compliance with US biofuel mandates, Motiva chief executive Dan Romasko said today, wading into a controversy that has split the industry.
Refinery margins rise and fall to offset the cost of markers called renewable identification numbers (RINs) refiners and importers need to acquire to prove biofuels enter the US transportation supply each year, Romasko said.
His view counters merchant refiner arguments that have gained traction in recent weeks that the market creates "windfall profits" for large retailers and blenders, imperiling smaller retailers and refiners that do not operate blending businesses.
But there was no correlation between RIN prices and profitability in any segment along the downstream chain, Romasko said.
"We actually do not believe anyone pockets any profits from the RIN," Romasko said. "What impacts margins across the refinery is what always has impacted margins in refining, and that is supply-demand variables." READ MORE