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 Representative.

Several additional 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.