In Michigan and the Rust Belt, drivers are experiencing higher fuel prices significantly above the national average. One contributing factor is the Renewable Fuel Standard (RFS), a federal program that mandates renewable fuels in transportation fuel.
• The RFS adds a financial burden of approximately $190.23 annually for each Michigander, costing them more than a tank and a half of gas for an SUV.
• This cost affects not only consumers at the pump but also increases transportation costs for farmers and businesses, resulting in higher prices for groceries and goods.
• Estimates suggest the RFS will cost consumers between $20 billion to $70 billion in 2026 and 2027.
• Despite diesel prices being historically higher, the gap has widened, highlighting the need to examine federal policies that impact fuel costs.
• The ongoing Senate debate includes proposals to maintain the RFS, with legislators needing to justify the consumer impact.
• High fuel prices are politically significant as tight Senate races approach, possibly influencing voter decisions.
• Call for the EPA and Congress to prioritize affordability over the RFS and consider reforms that provide relief to consumers.
Michigan families are feeling the strain of high costs. Addressing the RFS could offer essential relief and support more economically sound policies.