home Oil field services, Production, Refining U.S. oil groups face rising biofuels costs, see higher pump prices

U.S. oil groups face rising biofuels costs, see higher pump prices

U.S. oil companies will likely pay close to $1 billion this year to put more ethanol and renewables in gasoline and diesel and face even higher compliance costs in 2016 after the U.S. government set targets for alternative fuel use above industry expectations.

Higher costs could be passed on to consumers, pushing fuel prices higher and prompting further calls from the oil industry for reductions in the quotas.

Companies such as Marathon Petroleum Co and Valero Energy Corp are scrambling to digest the requirements for biofuel use set by the Environmental Protection Agency and work out how much they may have to pay for paper credits to help them meet quotas.

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