November 24, 2021
Ethanol blending mandates are a part of the exploding cost of gasoline.
From the Wall Street Journal:
The price spike is adding grist to a yearsÂlong poÂlitÂiÂcal deÂbate over the federal ethanol blendÂing manÂdate, known as the ReÂnewÂable Fuel StanÂdard. PolitiÂcians from oil-and-gas states have sought to reÂpeal the reÂquirement, callÂing it inÂeffecÂtive and exÂpenÂsive, while corn-state politiÂcians have defended it, arÂguÂing it has added to U.S. fuel supÂplies and de-creased conÂsumer costs.
Since the ReÂnewable Fuel StanÂdard, or RFS, beÂcame law in 2005, ethanol has traded at around the same price as unblended gasoÂline, or at a disÂcount to it. The two have diverged this year as ethanol has inÂcreased about 157% to $3.42 a galÂlon in 2021, while unÂblended gasoÂline is up about 61% to $2.28 a galÂlon, acÂcordÂing to FactÂSet data.
The price of the finÂished U.S. gasoÂline conÂsumers buy, which inÂcludes ethanol and other adÂdiÂtives, is up about 62% this year, the highÂest levÂels since 2014. It was about $3.40 a galÂlon on avÂerÂage WednesÂday.
The price of corn has skyrocketed along with other commodities and yet we are wasting so much in gasoline. This was imposed on us by the feckless and fatuous George W. Bush, who went all Jimmy Carter after the terrorist attacks. This was to ostensibly help diminish our need for foreign oil, something that hydraulic fracturing actually accomplished. But the Biden Junta doesn't want fracking, and has kept the mandate in place. So the price of corn rises and the price of gasoline does likewise - at a time when we are producing less oil.And refining less. Several U.S. refineries were shut down during the deep freeze last winter and will not be coming back online thanks to our government. And we will not build any more.
So, less oil being drilled, less being refined, and spiking ethanol prices are driving up costs. All of this is a result of government regulation.
But it's in no way BIDEN'S fault!
Posted by: Timothy Birdnow at
11:01 AM
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Posted by: Dana Mathewson at November 24, 2021 10:31 PM (zjwe/)
Posted by: Timothy Birdnow at November 25, 2021 12:54 AM (+udfQ)
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