Trump to Shift Biofuel Blending Burden Off Refiners

The head of the Renewable Fuels Association said on Tuesday that it had been informed by President Donald Trump's administration that it would order a change to the U.S. biofuels program, lifting the responsibility for fuel blending off refiners.

Oil refiners, including Valero Energy Corp and CVR Energy Inc, had long sought the change, saying the structure of the country's biofuels program hits them with burdensome costs.

The Renewable Fuel Standard requires that fuel companies use increasing amounts of biofuel blended with gasoline and diesel.

"We received a call from an official with the Trump administration, informing us that a pending executive order would change the point of obligation from refiners to position holders at the terminal," Renewable Fuels Association Chief Executive Officer Bob Dinneen said.

"Despite our continued opposition to the move, we were told the executive order was not negotiable," he said.

The news sent prices of compliance credits used to meet annual standards tumbling to as low as 30 cents apiece on Tuesday from 47 cents to 48 cents previously.

(Reporting by Chris Prentice; Writing by Richard Valdmanis)