In a July 25, 2025 letter to House Speaker Mike Johnson and Senate Republican leader John Thune, the American Fuel and Petrochemical Manufacturers (AFPM) challenged federal biofuel and tariff policies. Reuters reported the letter on July 29, describing it as a sign of growing tension between refiners concerned about compliance costs and oil companies investing in biofuels. AFPM’s cost claims and policy criticisms are the trade group’s position, not independently established effects.
What AFPM objected to
Reuters reported that AFPM opposed several policies affecting fuel refiners and biofuel markets:
- A higher ethanol target: AFPM opposed congressional efforts to raise the corn-ethanol share target in gasoline from 10% to 15%. This was a proposed change, not an enacted target change in the Reuters report.
- Higher required biofuel volumes: The group objected to an Environmental Protection Agency (EPA) proposal to increase the annual biofuel volumes refiners must blend into fuel.
- Small-refinery waivers: AFPM criticized the EPA’s handling of exemptions for small refineries.
- Summertime higher-ethanol sales: The group objected to temporary nationwide summertime sales of higher-ethanol gasoline.
- Tariffs on imported feedstocks: AFPM raised concerns about tariffs affecting imported materials used to produce biofuels.
The Reuters account did not establish the current status or final outcome of these proposals and policies. The objections describe AFPM’s position, not a finding that the policies necessarily raise costs for consumers or harm refiners.
What the group said the policies could cost
AFPM put compliance costs associated with the EPA proposal at approximately $70 billion, according to Reuters. That is the group’s estimate as reported on July 29, 2025—not a verified amount already incurred or an independent forecast.
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AFPM president Chet Thompson said the policies would hurt “consumers, our members, and the President’s energy dominance agenda,” Reuters reported. An AFPM spokesperson told Reuters the group had “deep concerns with federal biofuel policy and the latest RFS proposal, especially,” and hoped to address them with the administration and Congress.
Why oil companies are divided over biofuels
Reuters contrasted integrated oil companies ExxonMobil and Chevron, which it said had invested in biofuel production, with independent refiners PBF Energy and CVR Energy, which had complained about the costs of pro-biofuel policy. Reuters also reported that AFPM had taken a more neutral stance on ethanol in recent years. The letter drew attention because it put the trade group more visibly on the side of refiners worried about policy costs; it does not establish that every member company shares the same view.
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AFPM’s letter, as quoted by Reuters, acknowledged the policies’ intended support for domestic agriculture and biofuel businesses, while arguing that they should not come at the expense of U.S. refiners and consumers. Reuters reproduced the group’s statement: “We understand support for some of these policies is intended to help promote the domestic agriculture and biofuel industries, for which the above are clearly designed. But these policies should not come at the expense of the domestic refining industry and U.S. consumers.”
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the letter means for consumers
The letter is evidence of a dispute over who bears the costs and benefits of federal biofuel policy; by itself, it does not show that gasoline prices will rise, that the proposed ethanol target will take effect, or that consumers have already paid AFPM’s estimated compliance costs. Those outcomes depend on policy decisions and market effects not established in the July 2025 Reuters report.
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Reuters also discussed anticipated California refinery closures and their potential effect on U.S. refining capacity. Those were historical forecasts in its July 2025 coverage, not confirmation of current capacity or closure outcomes, so they do not establish the present impact on fuel supply or prices.
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Sources
- Reuters, July 29, 2025: U.S. oil refining trade group challenges Trump biofuel, tariff policies in letter
- Reuters coverage of AFPM’s objections and the policy context
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