The US Energy Secretary, Chris Wright, has announced plans to reopen closed oil refineries in the US to increase fuel production and lower prices.
What happened
According to Wright, the Trump administration is in talks with the owners of closed refineries to determine which sites can be restarted. The administration will also provide up to $150 million in funding to support the expansion of petroleum production, storage, and logistics at refineries nationwide.
The funding, made available under the Defense Production Act, aims to increase domestic refining output by millions of gallons per day, improving supply and helping to lower costs for households and businesses.
Wright stated that the effort is a break from prior policy, which he claims led to the closure of refineries and more expensive refined oil products. He attributed the current high fuel prices to disruptions linked to the Iran conflict and Ukrainian attacks on Russian refineries.
The administration has also pursued additional supply by working with refiners abroad and easing certain diesel restrictions. Most US refineries are already running near full capacity, with utilization rates of 95 percent to 100 percent.
