US invokes Defense Production Act to expand Texas oil refinery

The United States government has invoked the Defense Production Act to help expand a small oil refinery in Tyler, Texas, Vice President JD Vance announced on Tuesday. Oilprice reported that the Trump administration is using the Korean War era authority to boost fuel production as United States fuel prices remain at record highs. [1][4][5]

According to Oilprice, the federal measure targets Delek's refinery in Tyler, Texas, which currently has a capacity of 74,000 barrels per day. Dainik Jagran MP CG also reported that the administration invoked the law to expand an oil refinery in Texas. Vice President Vance stated at a political rally that the administration worked with Delek to expand the facility to produce millions of gallons of commercial grade and military spec fuel. [1][6]

The Defense Production Act is a 1950 authority that originated during the Korean War, an armed conflict fought on the Korean Peninsula between North Korea and South Korea. Consumer prices for gasoline and diesel are largely influenced by crude oil costs, processing, distribution, local demand, and national pricing policies. [1][7][9]

Oilprice noted that diesel prices in the United States have stayed above 6 dollars per gallon, prompting the White House to seek additional measures to increase fuel supplies. [1][4][5]