14 hrs ago
Trump Pressures Refiners to Lower Gasoline Prices Before Midterms
Donald Trump met with oil-company leaders because gasoline and diesel have become much more expensive.
He wants companies to make more fuel so prices at gas stations can fall.
The meeting happened while the US war on Iran was disrupting oil and fuel supplies.
Refiners said rules requiring them to mix biofuels into gasoline and diesel can make fuel more expensive.
Some small refineries recently received exemptions from those rules.
Larger refineries may have to make up for the fuel volumes covered by the exemptions.
The administration also wants to make it easier to use more oil from Venezuela.
Energy Secretary Chris Wright said prices could face downward pressure in the next few weeks.
Lower fuel prices are important to Trump because voters are worried about the cost of living before the midterm elections.
Donald Trump urged roughly a dozen refinery and fuel-distribution executives to increase gasoline and diesel production.
US average prices have risen above $4 per gallon for gasoline and nearly $6 for diesel, according to AAA.
Refiners argued that federal biofuel-blending quotas are increasing costs and may be unattainable.
The administration recently granted some small refineries exemptions while seeking to shift waived blending obligations to other facilities.
Officials also asked refiners how to process more Venezuelan crude, though major short-term production increases are considered unlikely.
- Who
- Donald Trump, roughly a dozen refinery and fuel-distribution executives, Energy Secretary Chris Wright, and Interior Secretary Doug Burgum participated in or were involved with the meeting.
- What
- Trump pressed refiners to increase domestic gasoline and diesel production and discussed regulatory changes, permitting, biofuel requirements, and Venezuelan crude.
- Where
- The meeting was held in the White House Cabinet Room, followed by a visit to the Oval Office.
- When
- The meeting took place Tuesday; fuel prices have risen during the ongoing conflict, and the issue is politically important before November’s midterm elections.
- Why
- Trump wants to reduce gasoline and diesel prices as high energy costs create cost-of-living concerns and political pressure.
Administration and lower-price advocates
Refiner and industry concerns
Increasing fuel production
Administration and lower-price advocates
The administration wants refiners to increase gasoline and diesel production, use regulatory changes and faster permitting, and help lower prices at the pump.
Refiner and industry concerns
Industry representatives discussed practical limits on increasing output and said some facilities could not economically process additional Venezuelan crude because of their location or configuration.
Biofuel-blending requirements
Administration and lower-price advocates
The administration has maintained federal blending obligations while granting exemptions to some small refineries and seeking to reassign waived volumes to other facilities.
Refiner and industry concerns
Some refiners argued that record-high Renewable Fuel Standard quotas are unattainable and raise gasoline prices.
Venezuelan crude and shipping
Administration and lower-price advocates
The administration is seeking more Venezuelan crude and praised a Jones Act waiver allowing foreign ships to transport oil and other commodities within the United States.
Refiner and industry concerns
Refiners said taking additional Venezuelan crude would not make geographical sense for some US facilities, while significant increases in Venezuelan production are unlikely in the short term.
Key facts
- Gasoline price
- More than $4 per gallon on average nationwide, according to the American Automobile Association.
- Diesel price
- Nearly $6 per gallon on average nationwide, according to the American Automobile Association.
- Meeting participants
- Roughly a dozen executives from fuel refining and distribution companies attended.
- Biofuel policy
- The Renewable Fuel Standard requires refiners to blend ethanol, biodiesel, and other alternative fuels into gasoline and diesel.
- Recent exemptions
- The Environmental Protection Agency granted many small refineries exemptions from some biofuel mandates.
- Venezuelan crude
- The administration is seeking to unlock additional Venezuelan crude flows, though significant short-term production increases are unlikely.
- Expected price trend
- Chris Wright said he expected downward pressure on gasoline and diesel prices in the next few weeks.
Quotes
Chris Wright
US Energy Secretary who spoke to reporters after the meeting
“We're doing everything we can to help them increase the production of gasoline and diesel”
NDTV
