Ethanol Exec Says Don’t Blame the Flood for Higher Prices at the Pump

Business News/Analysis, California, Nebraska, Opinions

April 24, 2019

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by Brent Martin (St. Joseph Post) … CEO Geoff Cooper with the Renewable Fuels Association acknowledges a decrease in ethanol production has played a role, but contends the oil industry is just looking for an excuse for a 60-cent rise at the pump since the beginning of the year.

“Not surprisingly, the oil industry is trying to hide its role in the gas price spike and they’re looking for scapegoats and so of course they’ve been trying to suggest that flooding in the Midwest is to blame, because it affected rail shipments of ethanol,” Cooper tells KFEQ Farm Director Melissa Gregory.

Cooper says ethanol makes up only 10% of the fuel supply. He says oil prices have gone up, which has caused gas prices to go up.

…

“If you really want to know what’s driving gas prices, you really don’t need to look any further than what’s happening in the crude oil market and in the refining sector,” according to Cooper. “A barrel of oil today is about $20 more expensive than it was on January 1^st. So, we’ve seen about a 40% increase in the cost of a barrel of crude oil and that is by far the largest cost involved in making gasoline.”

Cooper says you simply cannot blame the flood for high gas prices.

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Cooper says the flood caused a temporary disruption in ethanol production, which he says has since been alleviated. READ MORE

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