That sets a renewable fuels standard of 10.2pc of fuel output for 2009, compared with the 7.8pc for 2008.

The Environmental Protection Agency (EPA) says that, under US law, the increase is needed to keep the US on track for the country's goal of using 36 billion gallons of renewable fuels by 2022.

EPA is charged with calculating a percentage-based standard for the following year by Nov. 30 of each year.

That percentage is the minimum volume of renewable fuel each refiner, importer and blender of gasoline must use.

EPA is also developing rules that will implement additional changes mandated by the Energy Independence and Security Act.

For more information about US EPA rules regarding renewable fuels, visit: www.epa.gov/otaq/renewablefuels/index.htm.

The increase comes despite ongoing attacks on biofuel usage airisng from the corn-for-feedd vs. ethanol debate and the alleged impact of biofuels in forcing up world food prices.

A large coalition made up of US environmental groups, food industry organisations and hunger advocacy groups held a press conference in Washington, DC, this week calling for the US government to end all ethanol subsidies.

Many of the coalition’s members were supporters of the unsucessful attempt to repeal the US renewable fuels standard earlier this year.

They contend that ethanol subsidies are the cause of higher food prices.

But US National Corn Growers president Bob Dickey says this is simply not true.

“These same ethanol critics are the ones who virtually promised to reduce food prices immediately and have failed to do so, even though corn prices and energy prices are down by more than

half in the last few weeks,” Dickey says.

“Food prices remain at a new high.”

Since June, when corn reached a high of $US7.88/bus, the price has come down to $US3.85.bus as of Monday this week.

Similarly, US gasoline prices have dropped more than 50pc since July when the national average gas price was $US4.11/gallon.