“The supply situation for pure gasoline is still fairly speculative at this point,” spokeswoman Jenny Love Meyer said. “The supply at terminals in the central Oklahoma area may decrease in the future. I am not aware of a specific timeline though when this might occur.”
Oil and natural gas industry groups like the American Petroleum Institute have urged the U.S. Environmental Protection Agency to reduce the ethanol mandate, without success.
“The program is outdated and needs to be repealed once and for all,” said Bob Greco, director of the institute's downstream group. “Under the current RFS (Renewable Fuel Standard) regime, ethanol requirements will continue to increase while gasoline demand continues to decline.
“That's why we need a full repeal by Congress.”
Ethanol advocates maintain the renewable fuel mandate has increased the country's fuel supply, while keeping the price of gasoline from climbing further.
“It is as if the U.S. oil refining industry had found a way to extract 10 percent more gasoline from a barrel of oil,” Iowa State University professor Dermot Hayes said in a statement released by the Renewable Fuels Association. “This additional fuel supply has alleviated periodic gasoline shortages that had been caused by limited refinery capacity.”
Hayes said the mandate has reduced fuel prices by an average of 29 cents a gallon.
Adam Wilmoth, Energy Editor