OLSON DISPUTES IOWA REP. STEVE KING'S ASSERTION ON RFS & GAS PRICES
Washington, DC - Rep. Pete Olson (TX-22) today responded to comments made by his House colleague Rep. Steve King (R-IA) claiming that ending the ethanol use mandate known as the Renewable Fuel Standard (RFS) would increase gasoline prices for consumers across the country.
"I respectfully disagree with Mr. King. Saying that removing the Renewable Fuel Standard will hurt consumers assumes that gasoline refiners will ignore basic economics. At the right level, the use of ethanol in our fuel supply can have many benefits. Because of that fact, even if the mandate went away entirely those who blend our transportation fuels would still utilize plenty of ethanol, and everyone from industry experts to economists from the Department of Agriculture have confirmed that fact. The difference is that they wouldn't be required by the government to blend in more than the fuel supply can handle. It's this government mandate – the RFS - that is driving high costs.”
"While ethanol has some very real benefits, imposing unachievable mandates onto the marketplace through the RFS is not the answer. The free market will allow producers and refiners to find the best balance that keeps prices low for consumers. We can reap the benefits without paying the penalty of skewed mandates. That’s how free markets work."
Olson is a member of the House Energy and Commerce Committee.
Media Contact: Melissa Kelly