Icahn-Hated Fuel Mandate Makes Profit for Gas-Station Owners
- Refiners to spend $1.8 billion on biofuel credits to meet rule
- Blenders like Murphy, Casey’s see windfall on sale of credits
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Listening to oil-refinery owners like billionaire Carl Icahn, you’d think the entire fuel industry opposes a mandate for more renewables in U.S. gasoline. But few complaints are coming from the likes of Murphy USA Inc. or Casey’s General Stores Inc. They’re making a lot of money from it.
Filling-station operators and suppliers who mix their own gasoline with ethanol or biofuel are enjoying a profit bonanza by selling renewable-fuel credits to refiners struggling to comply with federal standards. Transactions this year are set to reach a record $1.8 billion. It’s an obscure corner of the petroleum business that companies like Icahn’s CVR Energy Inc. say is “rigged” against them.