Ethanol Blending Falls as Projected Gasoline Demand Drops 3.5 Billion Gallons Below Orginal Estimate

The combination of reduced gasoline demand and a proposed D4 RVO that was well below market expectations, led to the slowing of renewable fuel production in April.  Obligated parties are likely reassessing the market ahead of the EPA’s expected June announcement that will finalize the 2023 through 2025 RVOs and could lead to an adjustment in one or more of the RVO categories.  Slowing gasoline demand in a somewhat suspect economy led to a reduction in ethanol blending.  D4 credit generation, which appeared to be getting ahead of itself, also slowed during April. 

There was 1.6 billion gallons of renewable fuel blended into the national transportation motor pool during April according to data released today by the Environmental Protection Agency.  Renewable fuel consumption was 4.4 percent below March,…