The stock prices of multiple biofuel makers are climbing. The gains are occurring after media outlets reported that President Joe Biden will raise the amount of ethanol that can be used in gasoline this summer. Among the ethanol stocks climbing today are Alto Ingredients (NASDAQ:ALTO), Green Plains (NASDAQ:GPRE) and Archer-Daniels-Midland (NYSE:ADM).
During a visit later today to Iowa, Biden is expected to announce that he will waive a rule which prevents a 15% ethanol blend of gasoline from being sold in the summer months. According to CNBC, “Most gasoline sold in the U.S. is blended with 10% ethanol,” and the 15% ethanol blend is usually prohibited from June 1 to Sept. 15 in order to ease the impact of pollution.
By allowing the 15% ethanol blend of gasoline to be used in the summer, Biden will attempt to lower Americans’ gasoline costs by “an average of 10 cents per gallon” in some parts of the country, CNBC quoted unnamed sources as saying.
What Is Happening With Ethanol Stocks Today?
Among ethanol stocks, ALTO stock surged 6% to $6.71, GPRE stock climbed 8% to $31, and ADM stock added 1.7% to $96. Gevo and Bunge, which produce fuel using biofuels other than ethanol, rose 2% to $4.70 and 2.4% to $120, respectively.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.