On October 21, 2026, Energy Secretary Chris Wright announced that the Trump administration is looking to reopen shut-down refineries in an effort to produce more fuel amid rising diesel prices. This initiative aims to address fuel shortages and high costs affecting consumers and industries.
Refinery Reopening Plans: The administration is engaged in talks with the owners of refineries that have been closed in the past decade. Wright emphasized the objective is to determine the most feasible refineries to restart (e.g., Valero’s facility in California).
Current Capacity: American refiners are operating at nearly full capacity (95-100%). These refiners have delayed scheduled maintenance to keep production high due to the ongoing rise in fuel prices.
Reasons for Rising Diesel Prices: High diesel prices have been attributed to geopolitical issues, notably the Iran war and disruptions from Ukraine affecting Russian refineries. Diesel prices recently hit record highs.
Department of Energy Initiatives: The Energy Department plans to lend 315,000 barrels from the Northeast Home Heating Oil Reserve, a strategic reserve for emergencies. This reserve has been used in the past, such as after Hurricane Sandy in 2012.
Defense Production Act: Vice President JD Vance mentioned that the administration intends to invoke the Defense Production Act to assist Delek US Holdings in expanding its refinery in Texas. This move aims to significantly increase fuel output.
Fuel Pricing Trends: Despite the concerns over prices, Wright reported that fuel prices have decreased recently. The American Automobile Association (AAA) noted the average price of diesel fell from $6.51 to approximately $6.32 a gallon.
International Factors: The situation is also influenced by China’s export bans on diesel, which could impact long-term fuel prices.
The Trump administration's focus on reopening closed refineries is a direct response to the escalating fuel prices and the need for increased fuel production. This plan, combined with other initiatives like using reserves and invoking the Defense Production Act, aims to stabilize the fuel market amidst ongoing global disruptions. The administration recognizes the complexities of this task and is actively seeking practical solutions.
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