[New York 11th Reuters]-According to several sources, the National Economic Council (NEC) announced on January 11 that the ratio of biofuels to gasoline will be increased to 5 in 2020 to domestic biofuel producers and refiners. Called for acceptance of a government proposal to raise
The US Renewable Fuel Standard (RFS) requires refineries to mix biofuels such as ethanol with gasoline, but the Trump administration announced an exemption from 31 refineries in August. Agricultural officials are repelling that this will weaken the market for corn-based ethanol, and the administration is trying to relieve the anger of farmers whose export sales are declining in the trade war with China.
At the meeting held on the morning of the 11th, NEC announced a government proposal to representatives of major biofuel producers such as Louis Dreyfus, a major grain trading company, and Archer Daniels Midland (ADM) <ADM.N> by the 13th. Asked to accept. Beyond this, it will be difficult for the administration to carry out the procedures necessary to change the mix ratio by next year. The range of increase in the mixing ratio is lower than the industry demand. In the afternoon of the 11th, government officials met with representatives of oil companies such as Marathon Petroleum <MPC.N>.