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Drivers May Bear the Brunt of U.S. Biofuel Quotas

  • With higher blend credit prices come stronger gasoline margins
  • Refiners likely to pass higher costs at the pump: Wells Fargo
Vehicles sit in rush hour traffic on the Interstate 405 freeway in this aerial photograph taken over the Westwood neighborhood of Los Angeles, California, U.S.

Photographer: Patrick T. Fallon/Bloomberg

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Senator Ted Cruz may want to spotlight a new victim in the King Corn versus Big Oil tussle: U.S. motorists.

The Texas Republican took up arms for fuel makers after President Donald Trump upheld the Renewable Fuel Standard, the 12-year-old rule that forces refiners to either mix biofuels in with their gasoline and diesel or buy credits. Despite the petroleum lobby’s efforts, the Environmental Protection Agency last week rejected a petition from independent refiners including Valero Energy Corp. and CVR Refining LP to alter the rule and put the burden on companies that blend the finished fuel that goes into cars and trucks.