US Environment Protection Act Permits E15 Sales to Go on Until the Summer of 2023
- 03-May-2023 5:06 PM
- Journalist: Xiang Hong
Texas- The US government has come forwards with a decision relaxing the end-use (biofuel) consumers for the upcoming summers. The Environment Protection Act (EPA) and the US government also focus on increasing the domestic production and the exporting quantity of Ethanol in the domestic and overseas markets. The US government plans reflect the Ethanol industry's aim to grow into aviation after years of stagnant demand for corn-based fuel as an ingredient in petrol, as well as estimates that future motor fuel demand will shrink due to improved efficiency and the rise of electric vehicles. Towards the end of the fourth month of 2023, Ethanol prices were observed at USD 812 per MT, FOB Texas.
The US EPA issued an emergency permission in the last week of April that will allow E15 sales to continue countrywide through the summer driving season of 2023. Representatives and major consumers from the Ethanol business in the US applauded the agency's decision as the gap created in the domestic market via tight supply of fuel amidst the higher demand can now be narrowed. Ethanol plays a major role in governing the overall market dynamics of the US Biofuel market.
According to the EPA, the abandonment of using 165% Ethanol blended fuel will relieve Americans at the pump from ongoing market supply challenges caused by Russia's invasion of Ukraine by expanding the fuel supply and providing customers with additional options at the pump. According to the EPA, the agreement will help protect Americans against fuel supply emergencies by reducing our reliance on imported fossil fuels, increasing energy independence in the US, and promoting American agriculture and industries. Moreover, the Ethanol blended fuel becomes cost-effective for manufacturers as E15 is around 25 cents per gallon less expensive than E10. As per ChemAnalyst, Ethanol prices are expected to regain their market strength in the upcoming weeks on account of inclined demand and inclined production rate.
