White House weighs invoking Defense Production Act to boost US oil refining capacity

The White House is actively considering using the Defense Production Act to expand US oil refining capacity, a move that would deploy Cold War-era industrial policy tools to address a fuel crisis driven by the ongoing conflict with Iran. Diesel prices have crossed $6 per gallon nationally for the first time in history, and US refinery utilization has hit 98%. That second number is the one that really matters: it means the country’s refining infrastructure is essentially maxed out, with almost no slack left to absorb supply shocks or seasonal demand swings. The DPA playbook so far This wouldn’t be the administration’s first time reaching for the Defense Production Act on energy matters. President Trump issued a determination on April 20, 2026, declaring domestic petroleum production, refining, and logistics essential to national defense. That determination opened the door for the Department of Energy to channel financial support through DPA Section 303, which allows the government to subsidize and incentivize production of materials deemed critical for defense. On September 8, 2026, a follow-up executive order expanded DPA powers specifically for energy-related authorities. Three da...