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Federal Biofuel Mandate Adds Up To 37 Cents To Every Gallon Of Fuel, Estimates Show
Estimates suggest the federal Renewable Fuel Standard adds between about 7 and 37 cents to each gallon of fuel, with costs varying by method and fuel type. The figures have renewed debate over who ultimately pays for the mandate, which requires fuel suppliers to blend biofuels and is intended to support renewable fuels.
The EPA estimates the 2026 cost at 6.8 cents per gallon of petrol and 18.6 cents for diesel, while the Energy Policy Research Foundation’s estimates range from 27 to 37 cents. Its higher estimate implies an annual cost of about $74 billion; the lower one suggests $54 billion. A refiners’ group says compliance costs have recently been around 30 cents per gallon and consumers bear a substantial share, while the EPA says it weighs effects on fuel users when setting requirements.
In short
- Estimates put the mandate’s cost at 7 to 37 cents per gallon.
- The EPA’s 2026 estimate is higher for diesel than petrol.
- Industry groups say consumers bear much of the compliance cost.