White House explores Defence Production Act to boost U.S. oil refining amid fuel price surge

The White House is assessing a potential invocation of the Defence Production Act to expand U.S. oil refining capacity, a step prompted by rising fuel prices and supply disruptions linked to the Iran conflict. The idea emerged during a recent gathering of President Donald Trump with roughly a dozen major refiners, where officials sought ways federal support could increase output. Refining executives argued that funding should target efficiency improvements or expansions of current facilities rather than financing a brand-new plant, which would be costly and take years.

The Act, rarely used for such purposes, was previously authorized in April to support petroleum production, refining and logistics. With refinery utilization at about 98%, the industry is operating near full capacity while diesel prices have climbed above $6 a gallon. The administration also highlighted efforts to secure foreign oil, including a 35% U.S. stake in North American Blue Energy Partners, a Venezuelan oil firm, to supply additional crude to domestic refineries.