Fuel marketers say oil refiners are supressing ethanol to keep prices, profits high; not so, says refiner association

A spokesman for the National Petrochemical and Refiners Association said that oil refiners was blending more ethanol than required to by law and that “demand for more ethanol just isn’t there”, according a a report on money.cnn.com.

An analyst from Oil Price Information Service confirmed that ethanol marketers were probably right in asserting that oil refiners were avoiding blending ethanol in order to use more oil and raise prices and profits.

The president of the Renewable Fuels Association, Bob Dinneen, questioned oil refiners’ motives when he noted that the US produces 6.5 billion gallons of ethanol and uses 140 billion gallons of gasoline. Ethanol prices have dropped more than 30% this year amidst talk of an ethanol “glut”.

Dineen said that only a federal government mandate would force oil refiners to use more ethanol and less of their own petroleum.

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