“Industry representatives also blamed the pump prices on the renewable fuels standard, which requires refiners to blend biofuels, such as ethanol, into gasoline. If refiners fall short of the volume requirements, they must purchase credits, called RINs, to reach their mandated blending volumes, and they pass those increased costs to distributors, who make up for it from consumers.”
Klesse said the mandate will cost Valero between $500 million and $750 million this year because of the cost of RINs, which are around $1.33 per gallon of advanced biofuel and biomass-based diesel, and $1.32 for corn-based ethanol.
GOVT ethanol mandates cause the price of gasoline to go up $1.32/gallon. Add the recent federal and state tax increases, and the manipulation of the US dollar and we get the $3.50 gasoline. The recent increase of $.15-.25 is the typical summer driving season gauge.
Ethanol is worse than the price change per gallon. It is less efficient as well. Your price per mile is even worse than the price per gallon it adds.
Ethanol also wrecks your engine. It is a crap fuel. Biodiesel is crap as well, the cloud point is too low. It gels at low temperatures.
Look at refining margins.