U.S. Renewable Credits Are Getting Pricier, Buoying Gasoline Costs
- Domestic gasoline, diesel prices are the costliest in years
- Renewable credits have risen with record high feedstock costs
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The cost to comply with the U.S. biofuels blending mandate is going up, adding directly to pump prices that are already their most expensive in years.
The renewable credits, or RINs, that the federal government uses to track every gallon of biofuels that U.S. producers and importers blend into their transportation fuels are surging in price. An aggregate basket of RINs is up 10% since the start of the year, while the most expensive type of credit, a biomass-based diesel RIN, rose to $1.66 apiece on Tuesday, up more than 30% in 2022 so far.