NEW YORK (Reuters) – U.S. renewable fuel credits (D6) hit $1.00 in early trading on Wednesday, traders said, as prices continue to surge in the wake of the U.S. Environmental Protection Agency’s decision to back off program reforms.
The rise in credit prices helped boost U.S. gasoline margins to $18.69 a barrel, a nearly 5 percent jump, traders said.
The U.S. EPA abandoned a series of proposed changes to the nation’s biofuels policy last week after a massive backlash from corn-state lawmakers worried the moves would gut the program.. The moves were aimed at helping U.S. merchant refiners, who argue the cost of the credits are crippling.
The retreat by the EPA helped push the price of the most popular form of credits from about 80 cents last week to $1.00 on Wednesday.
Reporting By Jarrett Renshaw; Editing by Chizu Nomiyama and Andrea Ricci