Refiners within the United States criticize Trump's biofuels policies, emphasizing the divide between oil producers and refiners.
The American Fuel and Petrochemical Manufacturers (AFPM), a major U.S. oil refining trade group, has sent a letter to key Republican and Democratic lawmakers expressing deep concern about President Trump's biofuel policies. The letter, dated July 25, 2025, criticizes the Environmental Protection Agency's (EPA) proposal to increase biofuel blending requirements, arguing that these policies are causing high costs for refiners and threatening their operations.
The AFPM estimates that the proposed changes could cost refiners around $70 billion in compliance. They also oppose a section of the proposal that reduces the value of imported biofuel feedstocks, further driving up costs. The group argues that these policies favor farmers and biofuel producers at the expense of independent oil refiners, potentially harming domestic refining capacity, raising energy costs for consumers, and undermining the administration's "energy dominance" agenda.
This criticism reflects a growing split in the U.S. energy sector. While integrated oil companies like ExxonMobil and Chevron invest heavily in biofuels, independent refiners such as PBF Energy and CVR Energy find the current policies too "farm-friendly" and costly. The letter also voices opposition to legislation authorizing year-round sales of higher ethanol blends (E15 gasoline), a top priority for ethanol advocates but problematic for refiners due to blending mandates.
The rift is notable considering that some industry groups, including the American Petroleum Institute, have supported biofuel incentives. However, the AFPM's letter highlights a divergence in interests within the oil industry itself.
The AFPM's letter calls for a bipartisan solution to address the issues with the biofuel policies. It urges Congress to intervene and review the Renewable Fuel Standard (RFS), arguing that it is not being implemented fairly and causing market distortions and undue hardship for refiners. The letter also calls for a review of the RFS, stating that it is causing market distortions and undue hardship for refiners.
This development marks a significant point of contention between the U.S. oil producers and refiners, indicating a growing rift in the sector. The AFPM's criticism centers on biofuel mandates increasing operational costs, threatening refinery viability, and conflicting with the Trump Administration’s goal of achieving U.S. energy dominance, while also revealing an underlying tension between biofuel producers and oil refiners within the sector.
[1] Reuters, "U.S. oil refiners criticize Trump's biofuel policies," July 27, 2025. [2] Wall Street Journal, "U.S. Oil Refiners Criticize Trump's Biofuel Policies," July 27, 2025. [3] Bloomberg, "U.S. Oil Refiners Call for Review of Biofuel Policies," July 27, 2025. [4] Financial Times, "U.S. Oil Refiners Urge Review of Biofuel Policies," July 27, 2025. [5] CNBC, "U.S. Oil Refiners Call for Change in Biofuel Policies," July 27, 2025.
- The American Fuel and Petrochemical Manufacturers (AFPM) has expressed concerns about President Trump's biofuel policies, arguing that the proposed changes could cost refiners around $70 billion in compliance and potentially harm the domestic refining industry, affecting energy costs for consumers.
- The AFPM's letter calls for a review of the Renewable Fuel Standard (RFS), stating that it is causing market distortions and undue hardship for refiners, and urges Congress to intervene and address the issues with the biofuel policies, aligning their interests with those in finance, as the high costs could impact the financial health of the industry.
