Trump turns to Cold War-era law to boost fuel supplies as US midterms loom

The Trump administration plans to expand an oil refinery in Texas using a Cold War-era law to increase fuel supplies, as high energy costs put pressure on American households and businesses ahead of November’s midterm elections.

US Vice President JD Vance announced on Wednesday that the administration would use the Defense Production Act (DPA) to expand the Tyler, Texas, refinery owned by Delek US Holdings. The move is part of a broader White House effort to increase fuel availability and address affordability concerns before voters head to the polls.

“We want millions of gallons of commercial grade and military-spec fuel to come out of this refinery in addition to what it’s already producing,” Vance said while speaking in Texas.

Vance said the expansion could help lower the cost of air travel and daily commuting while making the country’s energy supply more reliable. However, the administration has not disclosed how much money will be allocated to the project or how significantly the refinery’s processing capacity will increase. The White House and Delek did not immediately respond to questions on the details.

The announcement comes as Trump steps up efforts to address fuel prices ahead of the November 3 midterm elections, in which control of Congress will be at stake. Affordability has emerged as a defining issue for voters, putting pressure on the administration to demonstrate progress on household costs.

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What is the Defense Production Act?

The Defense Production Act is a federal law enacted in 1950 during the Korean War. It gives the US government powers to support domestic industrial production considered essential to national defence and national security.

The law allows the government to prioritise certain contracts and orders, allocate materials and provide other forms of support to expand production of goods deemed critical to national security.

The Trump administration is now using the legislation to support additional refining capacity, seeking to increase the availability of both commercial fuels and military-grade products.

The latest move follows a Reuters report last week that Trump was preparing to direct administration officials to identify ways to increase oil and fuel production, including through the use of the DPA and measures to bypass state and local regulations that impede energy development.

The administration has increasingly turned to measures aimed at boosting domestic supply as fuel prices weigh on consumers and businesses.

Delek refinery expansion comes with a long timeline

The refinery in Tyler, located about 322 km north of Houston, currently processes approximately 74,000 barrels of oil per day.

Expanding an existing refinery can increase the volume of crude oil processed or improve the production of particular fuels, depending on the equipment installed and the configuration of the facility. The impact on the supply of gasoline, diesel and other products will depend on the project’s final design.

However, the expansion is unlikely to provide an immediate solution to high fuel prices. Refinery capacity projects typically require substantial capital investment and can take months or years to complete, depending on their complexity.

The absence of details on funding, additional processing capacity and the project timeline makes it difficult to assess how quickly the expansion could translate into higher fuel supplies or lower prices for consumers.

The announcement also comes as US refiners face the challenge of responding to market conditions while managing the cost and complexity of expanding existing facilities.

Trump looks beyond domestic refining to ease fuel prices

The Delek announcement is part of a wider set of measures the administration has pursued to increase diesel availability and contain energy costs.

One of the most controversial steps has been the issuance of a US general licence easing restrictions on Russian-origin diesel. The move has drawn criticism from Democrats and some Republicans, with concerns over the implications for Washington’s policy towards Moscow amid Russia’s war in Ukraine.

Trump has argued that additional Russian diesel supplies could help ease prices for American consumers and businesses. However, the extent of any relief will depend on the volume of fuel delivered, the timing of shipments and wider market conditions.

The administration’s efforts come amid broader uncertainty in global energy markets, where geopolitical tensions and disruptions to supply can influence crude oil prices, refining margins and the cost of finished fuels.