- Surging ethanol credit costs hit refiners in Q2, further squeezing profits already down because of higher crude oil prices.
- PBF Energy (PBF) spent $37M on RINs in Q2 and another $32M in Q1, prompting CEO Tom O'Malley to say PBF can't absorb the costs and consumers will have to pay.
- Last week, no. 1 refiner Valero (VLO) said it spent $125M on the credits during the quarter.
- Refiners who do more of their own ethanol blending into refined fuels rather than leave it to third parties feel somewhat less pain; Western Refining (WNR) says it can cover ~85% of its own RIN obligations.