Fuel Retailers Call on Congress to Restore Biodiesel Tax Credit to Help Reduce Retail Fuel Prices
PR Newswire
ALEXANDRIA, Va., March 10, 2026
ALEXANDRIA, Va., March 10, 2026 /PRNewswire/ -- Ahead of today's Senate Agriculture Committee Hearing examining the need to increase domestic production and consumption of U.S. agricultural products, fuel retailers reminded lawmakers that the transition away from the Biodiesel Blenders' Tax Credit to the '45Z' Clean Fuel Production Tax Credit is stifling demand for renewable fuels made from corn and soybeans, leading to higher fuel prices for consumers.
NATSO, representing truck stops and travel centers, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) said in a letter to the Senate Committee on Agriculture, Nutrition and Forestry that the biodiesel market has dried up since the expiration of the Biodiesel Blenders' Tax Credit and its replacement with '45Z.'
"Recent policy changes have left consumers and American farmers behind," the organizations said in the letter. "We encourage the Committee, starting with today's hearing, to work with stakeholders throughout the country to bring back the Biodiesel Blenders' Tax Credit so that biofuels can go back to playing the role that they used to play: lowering retail fuel prices in the United States. Farmers, producers, and consumers all benefit from a tax credit that incentivizes the consumption of biofuel. Biofuel policy works best when it helps the entire supply chain lower consumers' costs at the pump."
Representing 90 percent of fuel sold at retail, NATSO, SIGMA and NACS said when Congress enacted the One Big Beautiful Bill, fuel retail prices were stable. Extending a producer credit rather than a blender credit did not present clear-and-present economic downside for fuel consumers. Now, the harmful economic ramifications of transitioning from a blender credit to a producer credit are rapidly materializing in the form of increasing oil prices and a corresponding increase in retail fuel prices, harming American consumers who continue to grapple with affordability concerns.
Until 2025, the $1 per gallon Biodiesel Blenders' Tax Credit served as a brake on accelerating fuel prices. The Biodiesel Tax Credit incentivized fuel retailers to blend higher quantities of biodiesel by providing a clear, understandable tax credit that allowed fuel retailers to mitigate price increases and sell fuel to consumers at the lowest possible price. It further helped lower fuel prices for the nation's trucking fleets, which move the vast majority of consumer goods. Without the biodiesel tax credit in place, rapidly rising diesel prices stand to exacerbate price pressures throughout the broader economy.
NATSO, SIGMA and NACS urge swift legislative action to restore the $1 per gallon Biodiesel Blenders' Tax Credit and look forward to working with the Committee to address their concerns about U.S. Domestic Agriculture production.
About NATSO, SIGMA, and NACS
NATSO is the trade association representing America's travel center and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel center, truck stop and off-highway fuel retail industries; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. For more information visit NATSO.com. Follow NATSO on Facebook; Instagram; LinkedIn; and X. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459
SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. For more information visit SIGMA.org.
NACS For more than 60 years, NACS has been recognized as the premiere association for convenience and fuel retailers. NACS has more than 1,000 retail member companies that cumulatively represent more than 200,000 stores in 50-plus countries, including 90,000 stores in the United States alone. The U.S. convenience store industry, with more than 152,000 stores nationwide selling fuel, food and merchandise, conducts 160 million transactions daily and had sales of $837 billion in 2024. For more information, visit convenience.org. Follow NACS on LinkedIn, Twitter, Facebook and Instagram.
CONTACT: Tiffany Wlazlowski, twlazlowski@natso.com
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SOURCE NATSO, Inc.

