RVP… “Easy as… 15, 13.5, 9, 7.8”

By: Daniel Guttman / April 5, 2019

     According to the EPA, RVP is an abbreviation for Reid Vapor Pressure, a common measure of and generic term for gasoline volatility. EPA regulates the vapor pressure of gasoline sold at retail stations during the summer ozone season (June 1 to September 15), to reduce evaporative emissions from gasoline that contribute to ground-level ozone and diminish the effects of ozone-related health problems. RVP is regulated throughout the distribution network of petroleum from the refiners to the pipeline shippers, distributors, retailers, and consumers.  RVP is also regulated based upon geographic region as specified in the 1990 Clean Air Act. The EPA set the RVP standard at 9.0 psi for designated volatility attainment areas… and the RVP standard at 7.8 psi for certain designated volatility nonattainment areas. Since 1990 geographic regions have come and gone from nonattainment areas with the help of waivers and pollution cleanup.

     The question remaining is how this product will flow through the system in order to get into our vehicles in time for the “summer grade” switchover. The first step in the process is that refiners begin to produce and ship lower RVP subgrade material. Next, pipeline shippers are required to begin sending lower RVP products through their systems in order to have their large bulk tanks turned to low RVP by (See Buckeye’s chart below). Once completed, distributors are required to start purchasing and storing lower RVP into their facilities in order to be compliant by the date required for their area. Lastly, retail stations are required to have all of their storage tanks at the low RVP level by the date required for their area so that consumers will be burning the low RVP fuel by the beginning of summer. Refer to the chart below for compliant dates.

            rvp

   Why is this important? Well, the simple answer is price. Cleaner fuel equates to more expensive fuel. During the shipping phase, the price delta between low and high RVP can be as much as 15 cents per gallon. At the retail level, consumers can expect to see a price difference passed along to them. Therefore, as consumers and distributors we should be cognizant of these upcoming dates and therefore not react when prices rise throughout the system as we approach the summer months.

https://www.epa.gov/gasoline-standards/gasoline-reid-vapor-pressure

http://www.buckeye.com/LinkClick.aspx?fileticket=9iaDRdk9OOs%3d&tabid=125


Categories: RVP gasoline


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us