Even after yesterday’s 14 percent decline, the price U.S. refiners are paying to adhere to a 2007 law that requires companies to blend ethanol with gasoline is at least 10 times more than at the start of the year.
Renewable Identification Numbers, or RINs, tradable credits tied to each gallon of ethanol to show compliance with the law, tumbled to 89 cents yesterday after President Barack Obama’s administration responded to criticism by allowing four extra months to reach this year’s mandate and signaled an adjustment may come next year. RINs traded at $1.43 on July 17, compared with 7 cents at the start of the year.
