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In February, this column  took note of a  system that tracks the use of ethanol by refineries.

Known as RINS, the mechanism has long drawn criticism from the refining industry, which claims the system is subject to abuses and adds costs that are passed on to motorists. 

PBF Energy, the owner of Delaware City Refining  Co., has been an outspoken opponent of the current system and has gained support from government leaders in the First State.

Farm interests in the Midwest feel otherwise and continue to support the system, despite suspicions that the process that converts corn to alcohol is an overall loser. In addition to the energy consumed in producing ethanol, there is the fuel consumed when the product is transported by rail.

Foes will get ammunition from a recent Environmental Protection Agency decision that gives a tiny refinery in Oklahoma a hardship exemption from RINs.

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The refinery in question is owned by a profitable company whose largest stockholder is  billionaire  Carl Icahn, an individual who is hardly in a hardship situation.

Earlier, Philadelphia Energy, which has a massive refinery complex, also got a break on RINs. This case was different, since the company was in bankruptcy proceedings in Delaware, with the renewable fuel system cited as one of the reasons for the filing.

Meanwhile, the EPA and the Trump Administration have hinted at an overhaul of the RIN system. So far, nothing has happened.

One would guess that smaller refiners, like PBF and even industry giants, will be getting in line for hardship exemptions.

Enjoy the warmer weather and brace for another round of gasoline price hikes. The betting is that the price will stop short of $3 a gallon here. – Doug Rainey, publisher.

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