Trump Invokes Defense Production Act for US Refining
Source reports published 23 Oct 2026, 8:21 am – 12:22 pm AEST
President Trump announced the use of the Defense Production Act to increase US refining capacity, aiming to reduce high fuel prices. This involved invoking the Cold War-era statute to prioritize domestic oil refinery operations and secure funding for related projects.
What happened
- President Donald Trump announced on Thursday that he intended to utilize the Defense Production Act to bolster domestic oil refining capabilities during a campaign rally in Sioux City, Iowa.
- He stated his intention to invoke the wartime production statute, directing U.S. industries to prioritize and expand oil refinery operations to increase gasoline and diesel supply.
- According to a presidential memo, Trump also invoked part of the Cold War-era Defense Production Act, allowing him to provide financial incentives for oil-related activities, including pipelines and liquid fuel storage.
- This action followed a surge in crude oil and diesel prices, attributed to the conflict at the end of February involving US and Israeli action against Iran, and subsequent disruptions to global energy shipments.
- The Ukrainian attacks on Russian refineries further exacerbated fuel shortages.
- A spokesperson for the White House confirmed the administration’s commitment to addressing energy supply challenges.