White House biofuel push sparks row with oil refiners

The Trump administration ordered US refiners to blend a record amount of biofuels into petrol and diesel this year and next, in a move designed to support farmers.
The refining industry, however, warned the policy would backfire, pushing pump prices even higher at a time when they are already surging because of the war in Iran, Reuters reported.
The backlash from US refiners has exposed an unusually public split between President Donald Trump’s White House and oil companies that have long backed his efforts to strengthen the fossil-fuel energy sector.
“It’s baffling that, with fuel prices already climbing because of the conflict in Iran, the EPA is finalising a rule that will make things much worse for consumers,” said Chet Thompson, president and chief executive of the American Fuel & Petrochemical Manufacturers. “This is not what energy dominance looks like.”
Trump is trying to shore up support among key farming and energy voters ahead of the November midterm elections, while also grappling with consumer inflation that is most visible at the petrol pump. Since the start of the Iran war, average US petrol prices have jumped to nearly €4 a gallon nationwide.
Under the US Renewable Fuel Standard, oil refiners must blend billions of gallons of corn-based ethanol and other biofuels into the country’s fuel supply each year, or buy tradable compliance credits — known as RINs — from companies that do the blending.
Each RIN typically represents one gallon of biofuel blended. Farmers and biofuel producers say the programme is crucial for rural America, while refiners argue it places a heavy and costly burden on the industry.