Cheap Oil and Empty Roads Are Halting American Biofuel Plants
- Demand is also dropping as coronavirus keeps drivers at home
- End result may be cutting back production or closing plants
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U.S. ethanol makers are either halting or significantly cutting their production after the rout in oil prices made biofuels uncompetitive against gasoline, and as coronavirus keeps many drivers off the road.
With oil prices down, ethanol makers lose about 25 cents per gallon of biofuel, said Scott Richman, chief economist at the Renewable Fuels Association trade group. Ethanol this week fell to a record low of less than $1 per gallon.