Oil
US invokes 1950 law to expand Texas refinery as diesel tops $6
The United States administration has utilised Korean War-era emergency powers to increase domestic fuel output amid record prices.
Key points
- The White House applied the Defense Production Act to expand Delek's refinery in Tyler, Texas.
- US national average diesel prices remain above six dollars per gallon.
- Analysts suggest the measures are unlikely to provide immediate relief before upcoming midterm elections.
What happened
The United States administration has turned to a 1950 federal statute to boost domestic fuel production, according to reporting by OilPrice.com. Speaking at a political rally, Vice President JD Vance stated that the administration is working with Delek to expand a refinery located in Tyler, Texas, using the Defense Production Act. The legislation, enacted during the Korean War, grants authorities powers to direct private businesses to produce critical goods for emergency preparedness.
Why it matters
According to OilPrice.com, the move comes as the administration attempts to address record-high fuel costs ahead of midterm elections. National average prices for regular gasoline reached historic highs for autumn, standing at 4.34 US dollars per gallon, while diesel prices remained above six dollars per gallon. Analysts noted that global diesel markets remain exceptionally tight due to Middle East conflicts affecting the Strait of Hormuz and refinery disruptions in Russia caused by drone attacks.
What comes next
While officials aim to increase the output of commercial-grade and military-specification fuel, no specific timelines or production volumes have been provided. Industry experts indicate that additional output is unlikely to reach the market immediately or alter short-term pricing trends, with wholesale diesel futures continuing to trade around 200 US dollars per barrel.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
17.3% of United States’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
