Oil refiners seen hit by higher RIN compliance costs due to COVID-19

In Washington, Reuters reports that with COVID-19 impacts crushing oil refining margins and demand for fuel, oil companies are likely to be hit with hard having to comply with the Renewable Fuel Standard. The pandemic has also hit biofuel production, reducing the amount of RINs available for purchase which in turn has increased those prices which will make compliance more expensive for the oil companies. For example, Valero Energy expects it will have to spend as much as $500 million on RINs this year compared to $318 million last year.