On Wednesday, U.S. fuel prices average $4.16 per gallon, as reported by the AAA. To ease high pump prices, some states are resorting to drafting their own legislation on year-round E15—the federal decision ultimately falls on the EPA, an authority Congress granted the agency in March to be used in only “extreme or unusual” fuel or fuel additive supply circumstances.
Riding the Ethanol Train
Fellow countries might be increasing their ethanol blends at pumps, as U.S. ethanol exports continued a steady climb in February to 143.1 million gallons, up 16% from January, according to the Renewable Fuel Association.
Canada, leading the charts for U.S. imported ethanol for 11 months straight, purchased 31 million gallons in February alone.
Upticks in American ethanol imports have been occurred in:
1. India—up 35%
2. South Korea—up 56%
3. Brazil—up 44%
4. United Kingdom—up 168%
5. Netherlands—up 21%
February import records show the U.S. did not take in any ethanol for the month, compared with 10.5 million gallons in January.
Trade Barriers Shift
Tariff changes are likely part of the reason U.S. ethanol exports have increased, particularly in Brazil.
In late March, Brazil’s Ministry of Economy announced waivers on import tariffs for several U.S. products, including ethanol, through the end of 2022, due to inflation resulting from COVID-19.
Brazilian officials have reduced tariffs more than once in the past year. In November 2021, the country enacted a unilateral 10% reduction of import tariffs on 87% of all goods and services to be recognized through the end of 2022.
China has not purchased U.S. ethanol for nine consecutive months.
