Energy secretary says U.S. is courting closed refineries to cut fuel prices
Energy Secretary Chris Wright said Tuesday the administration is talking with every U.S. refinery shut in the past decade about getting one running again, as AAA's national averages sit at $4.26 for regular gas and $6.32 for diesel.
AI-assisted · US Brief desk · Sources listed below
What happened
The Trump administration is talking with every U.S. refinery shut in the past decade "to find what's the most practical one to get a refinery up and running," Energy Secretary Chris Wright said Tuesday on the sidelines of an event in Houston, Argus reported. The talks include Valero's 145,000-barrel-a-day plant in Benicia, Calif., the most recent to close, but Wright called that "a tough challenge" given California's business climate.
Why it matters
Fuel is still expensive two weeks before the midterms. AAA's national average on Wednesday was $4.26 a gallon for regular and $6.32 for diesel, versus $3.05 and $3.62 a year ago. Argus said prices have soared on global shortages caused largely by the U.S.-Iran war. Brent crude touched $111.99 on Tuesday, a five-month high, before settling at $108.79, Reuters reported.
More context
How it would be paid for: Wright said refinery expansions would tap a $1 billion fund created by last year's Republican-passed tax and energy law, under the Defense Production Act, and would be "heavily co-funded" by industry. So far only one project is known: Vice President JD Vance said last week that Delek's 74,000-barrel-a-day refinery in Tyler, Texas, will get DPA money for an expansion. Wright said Delek "had a very attractive proposal."
The plants in play: Besides Benicia, two other large refineries closed in the past two years, Argus noted: Phillips 66's 139,000-barrel-a-day Los Angeles complex and LyondellBasell's 264,000-barrel-a-day plant in Houston. Energy Under Secretary Kyle Haustveit separately said the department is working with refiners to push more crude through existing plants, Reuters reported.
What would change the story: A named restart with a date and a dollar figure. Argus noted that refinery expansions are usually planned months to years ahead and take as long to build. U.S. refiners are already running hard to fill gaps left by the de facto closure of the Strait of Hormuz, and posted bumper second-quarter profits as margins doubled. That means a quick price effect from new capacity is unlikely before the Nov. 3 vote.
Also moving: Russian diesel cargoes are heading back to traditional buyers such as Turkey and Brazil after the U.S. suspended sanctions, Reuters reported, citing Kpler and LSEG data.
5 listed sources
- Argus Media, Oct. 20, 2026
- Hart Energy, Oct. 20, 2026
- AAA national average, Oct. 21, 2026
- Reuters via Euronext, Oct. 20, 2026
- Dow Jones Market Data via Morningstar, Oct. 20, 2026
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Wright's quotes come from Argus, which spoke to him in Houston. Hero photo shows the Benicia refinery in 2011 (file photo). Pump prices are AAA's Oct. 21 national averages.
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