In Blow to Big Oil, EPA Says Oil Refiners Recover RINs Costs
by Chris Prentice (Reuters) Oil companies ultimately recover their costs of complying with the U.S. biofuels program, according to an Environmental Protection Agency (EPA) analysis that marks the regulator’s clearest challenge yet to a key criticism of the policy.
The report, written in May but released this week to back up a recent proposal for use requirements, is significant for both its detail and its timing.
The influential oil lobby has protested that the surge in RIN prices two years ago hurt profits and would be passed along to consumers.
In its report, the EPA said that the volatile ethanol RIN market does not cause higher retail fuel prices nor hurt consumers at the pump, ultimately supporting a key argument of biofuels supporters.