Trump Admin Pushes to Reopen U.S. Refineries Amid Fuel Price Crisis
Energy Secretary Chris Wright announces efforts to revive closed refineries as diesel prices hit record highs.
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Energy Secretary Chris Wright announced Tuesday that the Trump administration is exploring the reopening of previously closed U.S. refineries to boost fuel production. Wright emphasized that discussions are ongoing with owners of every refinery that shut down in the past decade, with the goal of identifying the most practical options to restart operations.
“We are talking about reopening every refinery we can,” Wright said at an event in Houston, according to Reuters. “There are dialogues there, and that’s a tough challenge. I’m not saying all these are going to happen.” One of the refineries under consideration is Valero’s facility in Benicia, California, which was the most recent U.S. refinery to close. Phillips 66, which announced plans to shut its Los Angeles-area refinery by the end of 2025, stated that its conversations with government officials remain private, though it does engage with them for operational updates.
Diesel prices have surged to record highs due to the Iran war, which began on February 28, and Ukraine’s attacks on Russian refineries. Energy Department Under Secretary Kyle Haustveit noted efforts to find innovative ways to increase refinery throughput. The Energy Department also announced it will lend up to 315,000 barrels from the Northeast Home Heating Oil Reserve, a stockpile used in emergencies like Hurricane Sandy in 2012.
Vice President JD Vance revealed plans to use the Defense Production Act to help Delek grow its refinery in Tyler, Texas, while campaigning for Republican Texas Attorney General Ken Paxton. Wright described Delek’s proposal as “very attractive” during a Houston event. American refiners are already operating at 95 to 100 percent capacity and have delayed maintenance to maintain output amid high prices. The American Petroleum Institute highlighted the importance of China’s policies on diesel exports, stating Beijing will be key to long-term price stability.
Wright told CNN’s “State of the Union” that fuel prices are falling, citing a recent decline in both diesel and regular prices. The American Automobile Association reported the national average for diesel at $6.32 per gallon, down from $6.51 a month earlier. The administration also indicated that commercial vehicles can now use red-dyed diesel, typically reserved for off-road equipment.
Source: Daily Caller
