Daijiworld Media Network - Washington
Washington, Aug 29: US President Donald Trump is set to meet oil refining executives and fuel distributors next week as his administration seeks ways to bring down persistently high gasoline prices driven by disruptions linked to the war in Iran.
The meeting is scheduled for the afternoon of Tuesday, September 1, with representatives of at least 10 fuel producers and distributors expected to attend, according to people familiar with the plans. The meeting is private and the sources spoke on condition of anonymity.
Trump is expected to hear directly from industry executives about current fuel-market conditions, measures that could help lower gasoline prices and ways to expand US refining capacity.
Companies invited to the meeting include major integrated oil companies as well as independent refiners. Marathon Petroleum Corp., Delek US Holdings Inc., Chevron Corp., PBF Energy Inc. and Valero Energy Corp. are among those expected to participate, according to people familiar with the matter.
High fuel prices have become a political challenge for Trump as he seeks to address cost-of-living concerns ahead of the November congressional midterm elections, in which control of Congress will be contested.
Trump entered office promising to reduce gasoline prices. The national average for regular gasoline fell to about $2.79 a gallon in January, but prices have risen sharply since disruptions associated with the Iran war began affecting global energy supplies.
US regular gasoline has climbed above $4 a gallon, around $1 higher than a year earlier, while the conflict has also pushed diesel prices sharply higher. Gasoline prices have eased from a peak above $4.50 a gallon in May but remain substantially above pre-war levels.
The conflict has disrupted oil flows through the Strait of Hormuz, a critical global energy route that handled around 20% of worldwide oil flows before the war began on February 28. Crude prices surged as high as about $112 a barrel during the conflict before easing as some shipping through the strait resumed.
The meeting comes as the Trump administration considers measures to increase oil supplies, including potentially unlocking additional crude flows from Venezuela. Refiners such as Valero and Chevron are among the major users of Venezuelan crude.
Refining companies are expected to present proposals for expanding US refining capacity or removing obstacles that discourage refinery operations. Potential changes to state and federal policies could also be discussed.
The US refining industry has contracted in recent years. Current capacity stands at around 18 million barrels of crude oil a day, down from roughly 19 million barrels a day in 2020. US refineries are nevertheless operating at high levels to meet domestic demand and exports amid tight global fuel markets.
The administration has already taken steps aimed at increasing fuel availability. Trump invoked the Defense Production Act, allowing potential federal support for refining and other energy projects on national-security grounds.
His administration has also temporarily waived certain Jones Act restrictions, allowing foreign vessels to transport oil and other commodities around the United States in an effort to maintain fuel supplies and contain costs. The administration subsequently narrowed the scope of the waiver in August, a move some refiners may raise during the meeting.
Another major issue expected to come up is the US Renewable Fuel Standard, which requires refiners to blend specified amounts of biofuels such as corn-based ethanol and soy-based biodiesel into transportation fuels.
The Environmental Protection Agency is considering exemptions for some small refineries from the annual biofuel-blending obligations. The extent of those exemptions, and whether the EPA will redistribute the waived obligations among other refiners, has become a contentious issue between oil companies and agricultural interests.
The debate has intensified after the Trump administration set record-high biofuel blending requirements for 2026 and 2027, increasing compliance costs for some refiners and making exemptions more valuable.
The White House is also weighing broader refinery waivers as part of its effort to ease pump prices. Reuters reported that the administration is considering exemptions covering as much as 1.8 billion renewable fuel credits, potentially benefiting refiners but drawing opposition from farmers and biofuel producers concerned about reduced demand for agricultural products.
The upcoming meeting therefore comes at a politically sensitive time, with the administration under pressure to reduce fuel costs while balancing the interests of oil refiners, consumers, farmers and the wider energy industry.