Trump to push US officials to use Defense Production Act to raise oil, fuel output, three sources say
President Trump is utilizing the Defense Production Act to increase U.S. oil and fuel output to combat near-record diesel prices. The administration is specifically expanding a Texas refinery owned by Delek US Holdings to increase its 74,000-bpd capacity. This move follows a meeting with nearly a dozen refiners who prefer federal support for efficiency and existing plant expansion over new construction. Vice President JD Vance confirmed the use of this wartime authority during a rally in Tyler, Texas, as the administration seeks to lower fuel costs before the November elections.
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- β The Trump administration is using the Defense Production Act to expand a Delek US Holdings refinery in Texas.
- β President Trump is directing department heads to find ways to control diesel fuel prices which are near record highs.
- β U.S. refinery utilization has reached 98%.
- β Refiners favor federal support for boosting efficiency or expanding existing plants over building new facilities.
What changed
The administration has moved from weighing the Defense Production Act to actively applying it to expand the Delek US Holdings refinery in Texas.
Live updates
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Trump uses Defense Production Act to expand Texas refinery capacity
President Trump is utilizing the Defense Production Act to increase U.S. oil and fuel output to combat near-record diesel prices. The administration is specifically expanding a Texas refinery owned by Delek US Holdings to increase its 74,000-bpd capacity. This move follows a meeting with nearly a dozen refiners who prefer federal support for efficiency and existing plant expansion over new construction. Vice President JD Vance confirmed the use of this wartime authority during a rally in Tyler, Texas, as the administration seeks to lower fuel costs before the November elections.
Why it matters
U.S. refinery utilization has reached 98%, leaving the domestic supply vulnerable to global crude disruptions. The Defense Production Act is a Cold War-era law allowing the government to prioritize industrial production for national security. These actions occur amid prediction market forecasts that gas prices will not drop significantly before Election Day.
What is confirmed
- The Trump administration is using the Defense Production Act to expand a Delek US Holdings refinery in Texas.
- President Trump is directing department heads to find ways to control diesel fuel prices which are near record highs.
- U.S. refinery utilization has reached 98%.
- Refiners favor federal support for boosting efficiency or expanding existing plants over building new facilities.
Still unconfirmed
- President Trump announced a deal with Russia for 300,000 metric tons of fuel immediately and 500,000 more by November.
- Trump issued directives to agency heads on October 10.
What to watch next
- Changes in diesel and gasoline prices leading up to November 3
- Further directives to department heads regarding fuel price controls
- Additional refinery expansion projects announced under the Defense Production Act
confidence 90%Sources used for this update (15)
- CNBC β Little relief expected for gas prices ahead of Election Day, according to prediction markets
- BBC β Trump wants to reduce the cost of fuel as the midterms loom - will it work?
- Yahoo Finance β Trump's moves to boost diesel supplies have not yet lowered prices
- The Washington Post β Analysis | Trump is trying last-minute ways to bring down prices
- Reuters β Trump to push US officials to use Defense Production Act to raise oil, fuel output, three sources say
- hyperdash.com β Trump Directive to Boost US Oil and Fuel Production Via DPA
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- finance.yahoo.com β White House Turns to Korean War-Era Law as Diesel Prices Stay ...
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