The Trump administration announced Friday that oil refineries must significantly increase their biofuel blending requirements over the next two years, sparking fierce opposition from industry leaders who warn the mandate will push fuel costs even higher amid ongoing conflict in Iran.
The decision has created an unusual public disagreement between the Trump White House and petroleum companies that have historically supported the administration’s pro-fossil fuel policies.
“It’s baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers,” said Chet Thompson, president and CEO of the American Fuel & Petrochemical Manufacturers.
“This is not what energy dominance looks like,” Thompson added.
The Environmental Protection Agency established biofuel blending targets of 26.81 billion RINs for 2026 and 27.02 billion RINs for 2027 under the nation’s Renewable Fuel Standard program. These requirements force refineries to mix billions of gallons of corn-derived ethanol and other alternative fuels into America’s gasoline and diesel supply annually, or purchase tradeable compliance credits known as RINs from companies that exceed their quotas.
Each RIN generally represents one gallon of biofuel blended into the fuel supply. The new quotas incorporate approximately 70% of roughly 2 billion gallons that were previously exempted between 2023-2025 through a small refinery waiver program.
Friday’s final numbers substantially exceed the EPA’s initial proposal from June 2025, which called for 24.02 billion RINs in 2026 and 24.46 billion RINs in 2027, without addressing how many waived volumes should be restored.
Agricultural groups praised the administration’s action, particularly when combined with this week’s decision to extend year-round availability of E15 gasoline containing 15% ethanol.
“Today’s announcement, coupled with the Trump administration’s E15 summertime waiver earlier this week, is a positive move for the nation’s corn growers who are navigating an exceptionally difficult economic environment,” the National Corn Growers Association stated.
However, the Renewable Fuels Association, representing ethanol manufacturers, expressed disappointment that only 70% of waived volumes were reinstated rather than the full 100% they had sought.
Thompson from the refining trade group claimed existing biofuel mandates have already added 25 cents per gallon to consumer fuel costs, with the new requirements expected to drive prices higher still.
Regular gasoline currently averages approximately $3.98 per gallon across the United States, representing an increase of more than one dollar since fighting began in Iran on February 28. Diesel fuel costs have climbed even more dramatically.
Rising energy expenses present a significant political challenge for Trump and Republican candidates heading into November’s midterm elections.
Congress established the biofuel blending requirement roughly twenty years ago to decrease American reliance on foreign oil imports while providing economic support to farming communities.
Beginning in 2028, the EPA announced that international fuels and raw materials will earn only half the RIN credits compared to domestically-produced alternatives, a policy designed to strengthen America’s biofuel sector.
