Bush supports reduction in Ethanol import tariff
Bush administration supports reducing, maybe temporarily, the import tariff on Ethanol. The recent price surge in gasoline has been blamed on the short supply and high prices of ethanol. With MTBE phased out in several states the use of and demand of Ethanol has grown and will continue to grow. Brazil will definitely benefit from any reduction in import tariffs. Public companies such as Pacific Ethanol (NASDAQ: PEIX) and Green Plains Renewable Energy (NASDAQ: GPRE) should have no effect if the import barriers are removed. These companies don’t produce any Ethanol right now but if the barriers are forever removed then we can see the price of Ethanol coming down and hurting their margins. The price has oil has come down to the $70 level so that should help with the price at the pump.
- Green Plains Renewable Energy Inc. (Nasdaq: GPRE) more than triples on its IPO on 3/15/2006
- WSJ: Big Oil curbing the growth of Ethanol
- Another outstanding day for Ethanol Companies
- Third Pacific Ethanol plant likely to be built in Visalia, CA
- Insider purchase at Green Plains Renewable Energy Inc. (NASDAQ: GPRE)
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