Around America, drivers are feeling the pinch at the pump. But Michiganders and others across the Rust Belt have it worse than most, with prices far above the national average. One factor that can more easily be dealt with than others to reduce fuel prices is the Renewable Fuel Standard (RFS), a federal program managed by the Environmental Protection Agency (EPA) that requires transportation fuel sold in America to contain a minimum amount of renewable fuels such as ethanol. The concern is straightforward: another federal compliance cost in a market where families can least afford one.
The RFS is estimated to cost each Michigander $190.23 every year. At today’s fuel prices, that would cover more than a tank and a half of gas for the average SUV — the most popular vehicle type in Michigan. While consumers might notice that cost most directly at the gas station, we’re paying it in far more situations. Since RFS applies both to regular gas and diesel fuel, farmers, truckers, and other businesses who need to transport everyday goods to the consumer are seeing their costs increase as well, and that winds up in our prices for groceries and other goods at the store.
According to RealClearPolicy, the EPA has estimated the cost to consumers to be around $20 billion in 2026 and 2027, while other organizations have that number closer to $66 billion or even $70 billion. As writer Taylor Millard puts it, “Whichever way you cut it, the bottom line is, the RFS is expensive for refiners and consumers.”
No one can promise that fuel prices will fall quickly. The cost of diesel has been higher than that of standard fuel for more than 20 years, but that gap has widened in 2026 due to global refinery disruptions, export restrictions, and low inventory. That makes it all the more important to scrutinize costs Washington can actually control. And this policy is one that deserves the most scrutiny, as it’s widely considered to be a failed policy.
Get rid of the corn subsidies – make people see what the real cost of food is!
Get rid of the ethanol subsidies – make people see what the real cost of gas is!
Get rid of the oil subsidies – they reported record profits – let the people have some of their money back!