Federal biofuel mandates are driving gas prices higher despite easing oil costs.

New aggressive federal biofuel rules require refiners to blend more biofuels or buy costly credits, pushing gasoline prices up. The EPA's rising quotas for renewable identification numbers (RINs) exceed current biofuel production, causing credit shortages and record-high prices. This raises fuel costs by up to $0.45 per gallon, impacting refiners without biofuel operations the most. Companies like Valero with biofuel production benefit, while others face margin pressure. Investors should watch EPA mandates and RIN costs as key factors influencing future gas prices beyond geopolitical events.