Historical Pricing of RINs Since Their Origins
Early RIN Market (2008-2010)
When RINs were first introduced following the 2005 Energy Policy Act and 2007 EISA implementation:
- Prices were relatively low, typically under $0.10 per RIN
- Trading was limited with minimal price volatility
- Market infrastructure was still developing
- D6 (conventional ethanol) RINs dominated the market
First Major Price Movements (2011-2013)
The market began experiencing its first significant price fluctuations:
- D6 RIN prices jumped from under $0.10 to over $1.40 in 2013
- This "RIN price spike" was triggered by concerns about hitting the "blend wall" (the practical limit of ethanol that could be blended into gasoline)
- The EPA's proposed 2013 volume requirements created uncertainty
- Price volatility attracted significant attention from policymakers
Market Differentiation Period (2014-2016)
Different RIN categories began showing distinct price patterns:
- D4 (biomass-based diesel) RINs typically commanded premium prices
- D5 (advanced biofuel) RINs traded at intermediate values
- D6 (conventional) RINs prices moderated but remained volatile
- Prices generally ranged from $0.30 to $1.00 depending on category
High Volatility Era (2017-2019)
This period saw extreme price swings influenced by policy uncertainty:
- D6 RIN prices reached nearly $1.00 in late 2016/early 2017
- Prices then collapsed to under $0.10 in 2018 due to:
- - Expanded small refinery exemptions
- - Potential RFS reform discussions
- - Export policy uncertainties
- D4 RINs remained more stable but still experienced significant fluctuations
Recent Trends (2020-2025)
The market has continued to evolve with notable developments:
- COVID-19 pandemic initially depressed RIN prices in 2020
- Prices surged in 2021, with D6 RINs exceeding $1.80 and D4 RINs over $2.00
- Prices moderated somewhat in 2022-2023 but remained elevated compared to historical averages
- Increased focus on advanced biofuels has maintained premium pricing for D3/D4/D5 RINs
- Policy developments around the "Set Rule" and electric vehicle RINs (e-RINs) have influenced market expectations
Key Price Drivers Throughout History
Several factors have consistently influenced RIN pricing:
- EPA annual volume requirements
- Small refinery exemption policies
- Feedstock costs (particularly for biodiesel)
- Petroleum fuel prices
- Blend wall constraints
- Policy uncertainty and court decisions
- Seasonal demand patterns
Market Maturation
Over time, the RIN market has:
- Developed more sophisticated trading mechanisms
- Attracted more participants, including financial institutions
- Established more reliable price discovery
- Created more complex hedging strategies
- Implemented fraud prevention measures
This historical pricing overview demonstrates how RINs have evolved from a simple compliance mechanism to a complex market with significant economic implications for the renewable fuels industry and petroleum refiners.