US Department of Energy urges refineries to increase diesel production — OilPrice

The US Department of Energy has urged oil refining companies to increase diesel fuel production to help reduce prices. The average diesel price in the country exceeds $6 per gallon. OilPrice reports, citing Reuters, which quoted two senior officials from the US department.

Talks with refiners

According to the publication, US authorities are holding talks with refiners in the United States and abroad. This step is part of federal government measures to reduce record-high diesel fuel prices.

US Energy Secretary Chris Wright said the authorities are discussing the possibility of restarting as many idled refineries as possible. At the same time, he acknowledged that this is a difficult task and that it will not be possible to implement all such projects.

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Measures to reduce prices

The administration of President Donald Trump has also temporarily waived the federal tax on red-dyed diesel fuel. This type of fuel is usually sold to industrial consumers, including for agricultural and construction needs.

The US Department of Agriculture this week announced an $8 billion fuel assistance program. The federal government has also invoked the Defense Production Act to encourage the restart of idled refineries and an increase in diesel output.

OilPrice notes that $1 billion has been allocated for these purposes, but restarting refineries requires significant costs and time. Therefore, this measure will not ensure a rapid reduction in diesel fuel prices.