Oil refiners suffering from higher ethanol and RIN prices

May 18, 2016 |

In Texas, oil refiners are getting squeezed by requirements to blend ethanol at ever higher prices while margins shrink due to low oil prices. HollyFrontiner Corp., for example, had to pay $36 million in ethanol premiums during Q1 due to ethanol averaging 30 cents per gallon higher than gasoline in Chicago, while it paid $46 million for RINs. Ethanol premiums vary greatly across the country from 2 cents in Chicago to 24 cents in Los Angeles.

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Category: Producer News

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