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S Illinois | That pricing structure doest have anything to do with ethanol or RBOB pricing and I feel thats where some are confused to think that ethanol is so cheap. What you are seeing is the effect of mandate. That ethanol free gasoline has to have a RIN value added on to it or use other credits the company has. So the fuel company can take the extra ethanol gallons they sell above 10% and sell them as RINS to someone else or they can use them as a credit on their ethanol free gasoline. Right now R6 RIN values are pushing a dollar. Mandates matter.
Edit: Looks like gasoline futures are around 1.95. Ethanol prices received are in the $1.70-1.75 in the heart of the corn growing areas. Ethanol to the coasts are similar in price to gasoline futures once freight is added in. The mandate is also why SRE's get so much attention when they come up.
Edited by w1891 8/27/2025 08:30
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Does anybody else agree?
