Report: 2013 RIN prices did not affect gas prices

By Staff | February 18, 2014

An analysis performed by Informa Economics Inc. has determined that the price of renewable identification credits (RINs) did not affect retail gasoline prices during 2013. Informa used statistical methods to explore any causal relationship between RIN prices and retail gas prices, and found that although both RIN and gas prices increased and remained elevated midyear, the changes occurred for different reasons. In fact, the analysis showed that the increase in gasoline price early in 2103 actually predated the increase in RIN prices. 

Informa’s analysis also investigated the cause of higher gasoline prices, finding that the primary driver of retail gasoline prices is the price of crude oil. Secondary factors include changes in the spread between domestic and international crude prices and changes in U.S. demand, which varies seasonally.