Fuel Retailers Praise Ambitious Renewable Volume Obligations
ALEXANDRIA, VA — NATSO, representing truck stops and travel plazas, SIGMA: America’s Leading Fuel Marketers and the National Association of Convenience Stores (NACS) praised the Environmental Protection Agency and the Trump Administration for issuing ambitious Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard and simultaneously urged Congress to quickly enact biofuel tax incentives that can help bring down retail fuel costs.
NATSO, SIGMA and NACS, which represent 90 percent of fuel sold at retail, said reinstating the Biodiesel Tax Credit represents a significant opportunity to strengthen demand for renewable fuels – enhancing supply options and alleviating fuel price pressures caused by today’s market volatility and geopolitical risks.
“Fuel retailers applaud the Administration for keeping sight of the real-world implications of biofuels policy on American energy supplies and consumers,” said David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA. “Robust blending mandates such as those announced today can incentivize additional production of renewable fuels, creating additional supply and stabilizing prices.”
“At the same time, Congress should consider re-extending the Biodiesel Tax Credit to make diesel fuel — and all goods that move by truck — more affordable,” Fialkov said. “As the nation’s lawmakers seek urgent solutions to stabilize supply and mitigate fuel costs for consumers, they should turn to the solution we know works.”
Geopolitical instability in the Middle East has introduced significant uncertainty into global oil markets, placing upward pressure on diesel prices at a time when American consumers and businesses can least afford it. Biofuels play an important role in expanding supply while offering consumers a more affordable alternative to conventional fuel.
“Strong RVOs send an important market signal, but they work best when paired with consumer-friendly fuel tax policy,” said Matt Durand, Deputy General Counsel for NACS. “When Congress aligns the RFS with proven incentives like the Biodiesel Tax Credit, fuel retailers and their suppliers are better positioned to deliver lower-cost fuels to end users.”
When the Renewable Fuel Standard works alongside well-functioning incentives like the Biodiesel Tax Credit it makes it economically feasible for fuel retailers to buy and blend biofuels. These cost savings are passed on to consumers.
Biodiesel also historically has been the most widely used biofuel in trucking. Low fuel costs are essential for reducing the cost to consumers for goods transported by truck. When motor carriers can pay less for fuel, shippers pay less for freight.
NATSO, SIGMA and NACS look forward to working with the Administration to advance our shared goal of stable American energy supplies and affordable fuel prices for consumers.
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