A member of MRAA sent
staff a note with great concern about significant increases to the price
that distributors will be charging for gasoline beginning on September 16. According to the material supplied to the
MRAA office, the primary driver of the conversion to sub-octane (typically 84-octane)
gasoline is the Renewable Fuels Standard passed by Congress in 2005. That law requires a refiner to off-set fossil
fuel production with a renewable fuel such as ethanol. Pipelines are transitioning to sub-octane
gasoline due to limited tank space at the terminals.
After September 16, it is
anticipated pipeline systems will convert to 84-octane with an increase of up
to 60 cents per gallon at wholesale.
MRAA is attempting to
verify this report. Contact has been
made with the national association for gasoline refiners. The national association for gasoline refiners did
not have a solid answer to the report.
This group believed it may be a distribution or storage system
issue. "There may not be capability in
some areas to carry both finished products (multiple octane gasoline) that can
be splash blended with ethanol,” said Geoff Moody, AFPM Washington
inquiries have been placed with other oil industry groups in Washington to
determine the scope of the issue.
MRAA is a strong
supporter of the elimination of the renewable fuel standard and is working with
the oil industry and other boating groups on ethanol issue.