Vice President Vance announces Texas refinery expansion — The Hill

The administration of US President Donald Trump will use the powers of the Defense Production Act to increase fuel production at Delek's oil refinery in Tyler, Texas. US Vice President J.D. Vance announced this during a rally in Texas, The Hill reports.

Production of civilian and military fuel

According to Vance, the Trump administration, together with Delek, has already used the Defense Production Act and intends to expand the Tyler plant. He said the authorities seek to obtain millions of gallons of commercial and military fuel from this refinery in addition to its existing production volumes.

The Defense Production Act grants the US president the authority to increase the output of certain goods to ensure national security. It is currently unclear whether the use of this mechanism will be extended to other oil refineries. The Hill contacted the White House for comment.

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High fuel prices

The announcement came amid high fuel prices in the United States. According to the American Automobile Association, on Tuesday the average price of gasoline was about $4.34 per gallon, while diesel fuel cost $6.28.

Andy Lipow, president of Lipow Oil Associates, previously expressed doubt that using wartime powers could quickly lower prices. According to him, existing refineries are already producing the maximum possible volumes of diesel, while increasing capacity would require investment and time, or the reopening of closed plants or construction of new ones. The Hill notes that the war in Iran has increased oil prices and weakened energy infrastructure in the Middle East.