Addendum to Potential Supply and Cost Impacts of Low Sulfur, Low RVP Gasoline

Baker and O’Brien Inc. for the American Petroleum Institute

[From an article in E&E News PM by Nick Juliano, sub. req’d]   An upcoming rule to lower the sulfur content of gasoline and diesel will not force any refineries to shut down but will increase their operating costs by between 6 and 9 cents per gallon, according to an industry-backed study released today.

The American Petroleum Institute released an updated assessment of U.S. EPA’s upcoming Tier 3 fuel rule based on assumptions that more closely mirror the requirements EPA officials have said they will include in the rule. A study released last year, which was based on more aggressive assumptions, predicted price increases in the range of 12 to 25 cents per gallon and that four to seven refineries would close…


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