Trump Admin Weighs Emergency Powers To Boost Refining As Diesel Tops $6
With national average diesel prices above $6 a gallon and regular gasoline firmly above $4.20, the Trump administration faces mounting pressure to deploy every available policy tool to contain fuel costs ahead of the midterm elections. Disruptions tied to the Russia-Ukraine war and turmoil in the Gulf are intensifying the global refining super squeeze.
Reuters reports late Friday afternoon that the Trump administration is considering whether to use the Defense Production Act to expand U.S. oil refining capacity as the Iran conflict drives up fuel prices.
According to the report:
However, expanding refining capacity comes as U.S. refineries are already operating near their limits. The latest data shows that utilization has topped 98%.
The discussions follow Trump's April decision authorizing support for domestic petroleum production, refining and logistics under the Defense Production Act. That directive identified financing constraints, long construction timelines, permitting delays and supply-chain limitations as obstacles to expanding capacity.
"America's refining capacity is essential to ensuring the United States has continuous access to secure, affordable, and reliable energy. Expanding that capacity is a top priority for the President and his energy team, who are evaluating concrete options to increase our refining capacity through regulatory reform, faster permitting, and additional investment," Taylor Rogers, a White House spokeswoman, told the outlet.
Reuters pointed out:
In March, JPMorgan's head of commodity research, Natasha Kaneva, outlined six policy levers the Trump administration could pull to contain oil prices. Some, including Jones Act waivers and Strategic Petroleum Reserve releases, have already been used. Other options include export restrictions and waiving federal fuel taxes.
Tyler Durden Sun, 09/13/2026 - 12:15
Continue reading...
[ H/T ZeroHedge ]
With national average diesel prices above $6 a gallon and regular gasoline firmly above $4.20, the Trump administration faces mounting pressure to deploy every available policy tool to contain fuel costs ahead of the midterm elections. Disruptions tied to the Russia-Ukraine war and turmoil in the Gulf are intensifying the global refining super squeeze.
Reuters reports late Friday afternoon that the Trump administration is considering whether to use the Defense Production Act to expand U.S. oil refining capacity as the Iran conflict drives up fuel prices.
According to the report:
However, expanding refining capacity comes as U.S. refineries are already operating near their limits. The latest data shows that utilization has topped 98%.
The discussions follow Trump's April decision authorizing support for domestic petroleum production, refining and logistics under the Defense Production Act. That directive identified financing constraints, long construction timelines, permitting delays and supply-chain limitations as obstacles to expanding capacity.
"America's refining capacity is essential to ensuring the United States has continuous access to secure, affordable, and reliable energy. Expanding that capacity is a top priority for the President and his energy team, who are evaluating concrete options to increase our refining capacity through regulatory reform, faster permitting, and additional investment," Taylor Rogers, a White House spokeswoman, told the outlet.
Reuters pointed out:
In March, JPMorgan's head of commodity research, Natasha Kaneva, outlined six policy levers the Trump administration could pull to contain oil prices. Some, including Jones Act waivers and Strategic Petroleum Reserve releases, have already been used. Other options include export restrictions and waiving federal fuel taxes.
Tyler Durden Sun, 09/13/2026 - 12:15
Continue reading...
[ H/T ZeroHedge ]
