Congress Warns Further Increase in Current Gasoline Prices

Congress is cautioning that the gasoline prices that have been rising for the last several weeks may increase even further with the renewable energy mandate of the Environmental Protection Agency that will take effect soon.

According to the report of Politico, refiners are spending more for credits of corn ethanol that are utilized to meet the renewable fuels standards of the EPA. Refiners previously spent just several cents for each gallon, but they now pay almost $1 per gallon. That implies that refiners may spend another $7 billion before the year ends, which may consequently lead consumers to also assist in paying for costs.

Federal and Government Affairs Vice President, Mr. Stephen Brown, of the refining firm Tesoro, said that the company is seeking to know what it is supposed to do.

However, Brown said that they are all in agreement that what is happening is not to the benefit of consumers.

To counteract rising prices, refiners can increase their exports of gasoline, lower the quantity they refine or pass it (the higher costs) on to the buyers.

Spokesman Bill Day of refinery firm Valero said that he believes that there is a combination of the three factors that occur with refiners.

In the meantime, the members of the Congressional Energy Committee are seeking solutions. Committee members will conduct hearings on the mandate of the EPA regarding renewable energy. However, they are still about to set a date.