Fuel Retailers Push Congress to Reinstate Biodiesel Tax Credit Amid Rising Prices
Event summary
- NATSO, SIGMA, and NACS urge Congress to restore the $1 per gallon Biodiesel Blenders' Tax Credit, which expired in 2025.
- The transition to the '45Z' Clean Fuel Production Tax Credit has stifled demand for biodiesel, leading to higher fuel prices.
- The biodiesel market has dried up since the credit's expiration, impacting consumers and farmers.
- Fuel retailers argue the blender credit was more effective in lowering retail fuel prices.
- The letter was sent ahead of a Senate Agriculture Committee hearing on March 10, 2026.
The big picture
The push to restore the Biodiesel Blenders' Tax Credit highlights the strategic tension between renewable fuel incentives and retail fuel price stability. The shift from a blender credit to a producer credit has disrupted the biofuel market, underscoring the need for policy alignment with economic realities. The outcome of this legislative push could influence fuel pricing dynamics and agricultural sector stability.
What we're watching
- Legislative Action
- Whether Congress will respond to the call to reinstate the Biodiesel Blenders' Tax Credit.
- Market Impact
- How the absence of the tax credit will continue to affect biodiesel demand and fuel prices.
- Economic Ripple Effects
- The pace at which rising diesel prices could exacerbate broader economic price pressures.