Trump Considers Expanding Refinery Waivers Amid Biofuel Demand Concerns

US President Donald Trump is considering expanding refinery waivers under the Renewable Fuel Standard to help contain gasoline prices, but this move could weaken demand for ethanol and other biofuels, affecting US farmers.

The White House discussed potential exemptions with senior officials on August 26, according to Reuters. A significant expansion of the small refinery exemption program could push traders to anticipate weaker biofuel demand, contributing to a sharp decline in prices for Renewable Identification Numbers (RINs).

Some farm groups are warning that bigger waivers could hit corn and soybean demand. The scale under consideration is substantial: up to 1.8 billion renewable fuel credits, compared to the current 990 million.

The administration is weighing a possible compromise: restoring waived gallons in future annual biofuel quotas. However, details on this mechanism remain unclear.