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December 18, 2024

The U.S. Environmental Protection Agency’s (EPA) Gasoline Sulfur program sets limits on the sulfur content of gasoline sold in the United States, with the aim of reducing a variety of vehicle emissions. The program relies on tradable credits that allow U.S. refiners and gasoline importers to reach compliance with sulfur specifications. For the second year in a row, in 2023, gasoline suppliers obtained and retired more sulfur credits than they generated, a trend that could increase supplier compliance costs and the price of octane in gasoline if it continues.

Sulfur is a natural component in crude oil that is present in gasoline, diesel, and other petroleum fuels unless it is removed. The presence of sulfur makes vehicle emission control systems less effective and contributes to air pollution. Reducing the sulfur content in

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