US oil refiners are pushing back against the Environmental Protection Agency's proposal to deny small refinery exemptions and other aspects of the latest biofuel mandate. They argue the policy will force some plants to close and increase gasoline prices further at a time the Biden administration is looking to ease pain at the pump for US drivers.
In its long-awaited Renewable Fuel Standard proposal, EPA adjusted down blending volumes for 2020 and 2021 to take into account the severe drop in transportation fuel demand resulting from coronavirus pandemic lockdowns.
Refiners report gasoline and diesel demand inching back up to over 90% of 2019 levels, but a full recovery is not expected until late in 2022.
Platts senior writer Janet McGurty spoke with Derrick Morgan, senior vice president for federal and regulatory affairs at the American Fuel & Petrochemical Manufacturers, about the small refinery waivers, RIN market volatility and how refiners view the latest blending targets.
This Capitol Crude podcast was produced by Meghan Gordon in Washington and Derek Sands in New York.