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American Fuel & Petrochemical Manufacturers President Charlie Drevna on the factors driving up the price of gas.
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We'll write the -- are shooting up higher for fifteen days at a route they are now what their highest level since may nineteenth the average price across the country.
Three dollars and 69 cents a gallon.
So is this the end of the road or isn't just the beginning joining me now is Charlie -- -- president of the American fuel and so chemical manufacturers.
Try thanks for joining us.
Good to be here Melissa thanks for having me again so what do you think I mean is this a trend that's gonna continue is it just a temporary spike which are -- Our I don't know if you -- betting on -- market's betting on what's gonna happen in the global oil.
Picture is is is a fool's -- On Yahoo! -- -- -- really Melissa you know you know where it right now where are we're looking at at basic market fundamentals that in a Tug of war with each other.
Globally.
And we're looking at domestically the you know -- -- continuing -- Be forced to put ethanol biodiesel.
In our gasoline and diesel supply and you we don't know what's going on an innovative in the agriculture and that the business.
-- got a couple combined forces going on -- and there's a lot of upward upward pressure on on supplies and -- I bring down some of those different factors that are impacting -- right -- -- got a lot of refinery problems that -- surprised -- two fires the same refinery out in California we -- it just this -- problems in the midwest.
But then also there's the ethanol -- that you're talking about the spiking prices after all do you think that -- the temporary.
Lifting of that mandate was put in place that that would make a big difference.
They did renewable fuel standard -- that calls for ethanol will be put in it good but -- high volumes and -- would buy diesel.
You know they're there -- those calling for temporary -- temporary -- they don't know so we need it we get a permanent solution to this problem.
They are they renewable fuel standard.
Is is is a law that needs to be repealed or significantly reformed.
In order to provide the consumer with the products they need.
You only think you all of the price of gas every single day we have people on his support ethanol -- say that if we repealed that mandate or just took it away temporarily but the price of gasoline would immediately go op.
Is that true or false.
I did indeed we're gonna use ethanol Melissa as as as -- the -- -- gasoline we're gonna use biodiesel the problem is when you mandate these these.
Terribly high qualities that just can't -- -- you just can't visit.
We don't know where -- it no wait we gotta come back if we're right now if you took ethanol out of the equation prices at the pop when I went to the gas station a week from now.
With a price the higher -- -- -- you -- ethanol out of the -- for -- Odd that that I can't answer that question because this and again it's a longer term the problem then is that some short term fix.
In -- address -- addressing a symptom rather than the cost.
So we what we've been saying Melissa and -- consistently saying is we're gonna use ethanol we're gonna use biodiesel in our fuel supply.
Just don't tell us to use qualities that are gonna of rock and potentially.
Harmed the -- arm engines.
-- the consumer increase costs and and where we can do much better things.
Quickly Israel and our -- -- the problem nonstop on this use ethanol is part of the problem -- that you know farmers -- price is gonna -- the price of corn has gone up so it seems like.
If we didn't have to blend ethanol the price of gasoline would go down appear.
If you're not willing to stand behind that I'm getting a little nervous about the rest of it.
On on the run on no you can't you can't do you can't have a a system that in fits and starts.
You did the system is set for us for using ethanol -- certain percentage.
You take it odd that in the refiners you have to do have to reconfigure so why again what I'm saying is the problem is the total renewable fuel standard.
Just not a one drought in one summer which is a problem not -- -- the pressure corn went up the price of gasoline is gonna go up.
But there are other market factors to Melissa -- coming in a -- as I said earlier that we're looking at a Tug a war going on between basic market fundamentals globally so they combine those with what we're saying domestically with.
Without being being using ethanol whatever increasing volumes there's a problem so in -- for.
For the price to go down you would have to remove ethanol permanently -- a temporary -- wouldn't necessarily make -- I'll -- -- not saying remove we're not saying remove ethanol permanently what we're saying is we as refiners are going to use ethanol.
Yeah a lot it -- -- did great qualities.
Not to quantities that are dictated by provided by the law not the coins are dictated by EPA.
We should be able to use ethanol and qualities that make sense and what I'm saying is as -- the renewable fuel standard as is currently.
Written in law and is currently being implemented by the Environmental Protection Agency.
Makes absolutely no sense it makes no sense for the refiners and it certainly doesn't make sense for the consumer all right Charlie -- -- President of the American film petrochemical manufacturers -- coming on today thanks Sharon.
