WASHINGTON – In response to what appears to be some misunderstanding concerning the findings of a draft report issued by the Environmental Protection Agency on the impact of boutique fuels, API has issued the following statement:
“API, the primary trade association for the nation’s oil and natural gas industry, has consistently stated that it does not believe the patchwork of localized gasoline and diesel specifications – the so-called boutique fuels – has led to the recent run-up in prices. It is inaccurate to say, as some press reports have, that the industry has claimed that boutique fuels have contributed to current high fuel prices. However, this rigid system of state- and local-specific fuel qualities can reduce supply reliability by making it more difficult to reallocate supplies in response to even relatively minor disruptions in the gasoline supply and distribution system. In this way, boutique fuels could increase price volatility and add to consumer costs during those disruptions.
”New laws designed to reduce the current number of regional fuels could help to reduce gasoline price volatility if they address the primary driver for increased boutique fuels—state renewable fuels mandates.