Refiners Warn of Less Fuel, Higher Prices in EPA Plan

Major oil refiners testified June 15 that the new, reduced-sulfur standard of 15 parts per million for diesel fuel could shrink production for several years and keep prices high for trucking.

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At a Senate subcommittee hearing, Jerry Thompson, senior vice president of Citgo Petroleum based in Tulsa, Okla., said up to “30% of highway diesel could be lost and take four years to replace,” if refiners were forced to comply with the proposed rule from Environmental Protection Agency.

He told legislators that the shrinkage in supply was attributed to the difficulty involved in making the ultra-low sulfur diesel fuel and preventing its contamination in a shared pipeline.

EPA wants to lower the sulfur level in diesel fuel from an on-road 500 ppm cap by June 1, 2006, to address public health concerns and improve air quality for more than 100 million Americans.

For the full story, see the June 19 print edition of Transport Topics. Subscribe today.

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