Rail Delays May Mean Higher Gas Prices

A group representing ethanol producers has told the U.S. Surface Transportation Board that service issues on Class 1 railroads could lead to higher gasoline prices.

The comment was contained in a letter to the Board written by Growth Energy, a trade association that represents 89 ethanol producers.

The letter said its members are experiencing significant rail service delays and disruptions.

Growth Energy said ethanol shipments that move in manifest freight trains have been taking two to four days longer than usual and in some instances delays have reached 10 to 14 days.

Even ethanol moving in units have seen delays ranging from three to 12 days because railroads have failed to pick up loaded trains on schedule.

Some refiners have cut their production as they wait for empty tank cars to arrive and some fuel terminals have run out of ethanol while waiting on loaded shipments.

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