U.S. President Donald Trump’s administration could expand exemptions for U.S. oil refineries from biofuel blending requirements as early as Monday, seeking to curb rising gasoline prices. Reuters reports this, citing two informed sources, writes UNN.
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The U.S. Environmental Protection Agency (EPA) is expected to grant small refineries exemptions covering more than 1.8 billion renewable fuel credits. This is approximately twice as much as the agency had previously planned.
The companies whose facilities have applied for exemptions include Marathon Petroleum and Chevron. Refiners view easing the requirements as a way to reduce fuel production costs.
Farmers fear a drop in demand for corn
Representatives of agricultural states oppose a large-scale expansion of the exemptions, as reduced biofuel use could lower demand for agricultural products, particularly feedstock for ethanol production. The EPA is considering offsetting this by revising the 2027 biofuel quotas and adding about 500 million renewable fuel credits.
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The American Petroleum Institute also opposed a larger-than-expected package of exemptions. It warned that a sharp change in the rules could create additional uncertainty in the fuel market.
The expansion of the exemptions is part of White House measures to curb gasoline prices, which rose sharply during the U.S. conflict with Iran. At the same time, the Trump administration is trying to avoid angering farmers ahead of the congressional elections in November.
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