The White House considers invoking the Defense Production Act to expand U.S. refining capacity

According to two sources familiar with the matter, as the US-Iran conflict exposes the United States’ vulnerability to disruptions in global crude oil supply and surging prices, the White House is considering invoking the Defense Production Act to expand US refining capacity. The relevant proposal was discussed recently at a meeting between Trump and nearly a dozen US refiners, but no final decision has been made. Refining industry executives told the government that federal funding would be better used to improve the efficiency or expand the capacity of existing refineries, rather than building costly, years-long new facilities. The latest data shows that the utilization rate of US refineries has reached 98%, nearing full capacity. The national average price for diesel in the United States has surpassed $6 per gallon for the first time, and gasoline prices remain high. The White House stated that expanding refining capacity is a top priority for Trump and his energy team, who are currently assessing specific measures such as regulatory reform, speeding up approvals, and increasing investment.