Estimating the impact of new US sulfur limits on fuel on gasoline costs

An article in the Wall Street Journal (March 29,2013) describes the differing estimates of the proposed plans to limit sulfur in fuel to under 10 parts per million (ppm) from the current 30 ppm. Petroleum executives claim a price impact of 10 cents a gallon but the Federal government estimates a 1 cent per gallon impact. The difference lies in the government estimates that 95 out of the current 111 plants already comply or can easily be modified, the remaining plants will be given more time. Auto industry executives like the new standard because it is already enforced in California. Should industry estimates based on the largest cost to comply plants drive decisions or should standardization drive decisions ? Or should the benefit of lower sulfur in fuel aiding reduction of tailpipe emissions drive standards?

About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , . Bookmark the permalink.

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