Oil refineries buying credits, not blending ethanol, says RINexchange

Rinexchange is reporting that the high price of ethanol, compared to gasoline, is persuading oil refiners to buy credits, or RINS, from other refiners instead of buying and blending ethanol. The Renewable Fuels Standard mandates 11.1 billion gallons of ethanol blending in 2006, but permits individual oil companies to determine whether to blend ethanol or buy Renewable Identification Number (RIN) credits, which are issued for each gallon of fuel blended by a refiner. Refiners that blend excessive ethanol can sell their credits.

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