Trading of ethanol credits among banks has caused drastic increase in the prices gasoline refiners pay for the credits, the New York Times said.
The federal government made it legal eight years ago to trade the credits fuel refiners can buy if they don’t reach their ethanol-blending requirements from the Environmental Protection Agency, the Times reported Sept. 15.
Banks have bought many of the credits available just as new refining minimums took effect, creating a market for them. The price for the credits increased 20-fold in a recent six-month period, the Times found in its investigation.
The Commodity Futures Trading Commission told the Times it had been monitoring the credit-trading market and might look more closely because of the involvement of ethanol.