04 May 2006 23:25 [Source: ICIS news]
WASHINGTON (ICIS news)--US ethanol producers urged federal policymakers on Thursday to maintain the 54 cents/gallon tariff on imported ethanol, saying domestic ethanol output is enough to meet US demand.
In a meeting earlier this week with members of Congress, President George W Bush raised the possibility of a temporary suspension of the ethanol import tariff as the White House and Congress explored ways of bringing down the high cost of gasoline.
Last month, the Department of Energy said some East Coast states were experiencing shortages at retail gasoline stations because of logistical problems in getting sufficient ethanol supplies to the region.
Bush suggested to lawmakers that the
The Renewable Fuels Association did not directly challenge Bush in its statement on Thursday, but the group argued that domestic ethanol output is sufficient to meet gasoline blending demands. The association, which represents US ethanol producers, also argued that ethanol supplies are tight in
The association also argued that eliminating the tariff would constitute a federal subsidy to Brazilian ethanol producers at US taxpayers’ expense.
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