Overview
- President Trump met with refinery and distributor executives on Tuesday to press for higher refinery output and discuss further tools to lower pump prices.
- U.S. average gasoline rose to about $4.19 per gallon in August and national diesel sits near $5.60 per gallon, figures that reflect tight global crude flows since Iran closed the Strait of Hormuz.
- The administration has already released oil from the Strategic Petroleum Reserve, relaxed Jones Act rules, and eased biofuel requirements as short-term steps that have not restored pre-conflict prices.
- Diesel is climbing faster than gasoline and is close to record highs, which will raise costs for farmers, truckers, and heating-oil users and could intensify political pressure before the midterms.
- Refineries are operating at very high utilization with limited spare capacity and the White House’s Venezuela deal and other long-term fixes are unlikely to ease prices quickly.