US refining group says record biofuel quotas may worsen Iran war price spike - Reuters

A US refining industry group has warned that record biofuel blending quotas could exacerbate fuel price increases tied to the Iran conflict. The refiners argue that higher mandated biofuel volumes reduce their production flexibility at a time when global energy markets are already volatile due to Middle East tensions. The concern centers on how rigid fuel-mixing requirements limit refiners' ability to adjust output in response to supply disruptions or geopolitical shocks. Biofuel mandates are set by the Environmental Protection Agency as part of the Renewable Fuel Standard, which requires blending increasing volumes of ethanol and other renewable fuels into the national fuel supply. The refiners' position puts them at odds with the renewable fuels industry and environmental advocates who support the quotas.