Washington Is Pushing Refiners for More Diesel. Relief at the Pump Will Take Time

Energy Secretary Chris Wright says the U.S. is talking about “reopening every refinery we can.” With diesel at $6.32 and U.S. plants already running hard, ENB checked which shut refineries could realistically return, and how fast.

If you drive a diesel pickup, run a farm or haul freight, here is the number that matters this morning: $6.32 a gallon. That is AAA’s national diesel average (9:34 a.m. CT Wednesday), against $3.62 a year ago. A 30-gallon fill costs about $81 more than last October (ENB calculation). Regular gasoline is $4.26.

Washington says it is working on it. On Tuesday, Energy Department officials said they are pressing refiners at home and abroad to make more fuel. The catch is time. U.S. plants are already running hard, and new capacity takes months to years. ENB found no published estimate of how much refinery restarts or the Delek expansion would lower diesel prices.

What Washington said

“We are talking about reopening every refinery we can,” Energy Secretary Chris Wright said in Houston, according to Reuters. “There are dialogues there, and that’s a tough challenge. I’m not saying all these are going to happen.” Wright also said the U.S. is working with India to raise refining output there and bring more products to global markets.

Wright said on the sidelines of a Houston event that the administration is talking with every refinery shut in the past 10 years “to find what’s the most practical one to get a refinery up and running” (Argus). He said expansions would draw on a $1 billion Defense Production Act fund that Congress created last year, and would be “heavily co-funded” with industry.

The one named project is Delek US Holdings’ refinery in Tyler, Texas, which can process 74,000 barrels a day (EIA). On Oct. 13, Vice President JD Vance said the administration “has used the Defense Production Act and we’re going to expand the refinery right here in Tyler, Texas” (Reuters via Yahoo News). The funding, the added capacity and the schedule have not been disclosed (Shale Magazine). Wright said Delek “had a very attractive proposal” to raise throughput “to a meaningful amount” (Argus).

The industry says it is already flat out. American Petroleum Institute CEO Mike Sommers told Reuters that U.S. refiners are running at 95% to 100% of capacity and are putting off planned maintenance because of high prices. “The American refiners are doing everything they can,” he said. Restarting idled plants, he added, would take a lot of capital.

Key numbers (AAA as of 9:34 a.m. CT Oct. 21; EIA week ending Oct. 16, released Oct. 21)

How hard are U.S. refineries running?

EIA’s weekly report, released Oct. 21, shows refineries ran at 93.4% of capacity in the week to Oct. 16, down from 93.5% a week earlier and a 2026 high of 98.0% in late August (EIA). That is below API’s range; Sommers did not say which measure or period he used. U.S. operable capacity is 18.04 million barrels a day, down from 18.16 million a year earlier (EIA).

The squeeze shows up in storage. U.S. distillate stocks, mostly diesel, rose 1.7 million barrels to 104.3 million barrels in the week to Oct. 16 (EIA). That is 9% below the 2021–2025 average for that week and still the lowest for mid-October in EIA weekly records going back to 1982 (ENB calculation). It is not an all-time low: stocks hit 87.2 million in April 1996 and 100.8 million in May this year (EIA). Commercial crude stocks fell 3.1 million barrels to 412.5 million, and gasoline stocks fell 3.0 million to 205.3 million (EIA). ATA chief economist Bob Costello told fleets: “I’m not saying you’re going to see a big spike here, but I don’t think there’s gonna be much relief” (HDT).

Which shut refineries could come back?

ENB checked six large refineries shut or idled since 2020 that are most often named as restart candidates. Together they had about 1.2 million barrels a day (counting St. Croix at its planned first phase), roughly 7% of today’s U.S. capacity (ENB calculation). EIA data show other closures and renewable-diesel conversions since 2020, including Marathon’s 161,000 b/d Martinez and Phillips 66’s 120,200 b/d Rodeo plants (EIA; EIA).

Only Benicia refined fuel this year, and only St. Croix has a public restart target. Plainview Energy Analytics says DPA-backed “debottlenecking” of existing plants could yield “a meaningful aggregate increase in fuel supply within 12 to 18 months” (Plainview).

Will it lower diesel, and how fast?

Not quickly, on the evidence so far. Refinery expansions “are capital intensive and take months, if not years, to complete,” Reuters reported. “Refineries that are currently in operation are already making as much diesel as they possibly can,” Andy Lipow of Lipow Oil Associates told The Hill.

ENB found no sourced estimate of how much a restart or the Delek expansion would cut diesel prices, or when. Neither the administration nor Delek has said how many barrels the expansion would add. The faster levers are stockpiles and imports. The IEA said it would speed the release of more than 20 million barrels of diesel, and Wright said waived-sanction Russian diesel would likely go to New England, if it comes to the U.S. at all (Reuters).

EIA’s weekly average was $6.276 on Oct. 19, against $3.809 on Feb. 23, just before the war, and a record $6.529 on Sept. 21 (EIA).

How consumers and investors see it

Truckers and fuel buyers: “Every $1 increase per gallon in fuel costs our members around $400 more per week, and sustained high prices will put many truck drivers out of business,” said OOIDA president Todd Spencer (HDT). Diesel is up about $2.70 from a year ago, so by that rule of thumb a typical owner-operator pays roughly $1,080 more a week (ENB calculation).

Investors: Refiners are cashing in on wide margins. Citgo raised its 2026 EBITDA outlook to $7.7 billion to $8 billion, from $5.8 billion, according to a document seen by Bloomberg. It said refining markets “continue to reflect a tight supply-demand balance and a geopolitical risk premium” (Bloomberg via Yahoo Finance). Shell is guiding for a record refining margin of $42 a barrel, and Exxon signaled that higher refining margins could lift downstream profit by $4.5 billion from the previous quarter (Reuters via Investing.com). Valero reports Thursday, Oct. 22 (Valero).

Caveats and criticism

• Policy may not move the needle. “Aside from a recession that hammers consumption, the only thing that can prevent oil prices from rising further and put them on a sharp downward trajectory is a durable end to conflicts in the Arabian Gulf and between Russia and Ukraine,” said Rapidan Energy Group’s Bob McNally. “Otherwise, policy options range from marginal to counterproductive” (Reuters via NBC News).
• Restarts cost real money. Port Hamilton’s director has talked about investing $3 billion to $4 billion to restart St. Croix ( Croix Times), and its 2027 target depends on financing (VI Consortium).
• The utilization numbers differ. API’s 95% to 100% is above EIA’s 93.4% for the week to Oct. 16 (EIA).
• “Record highs” needs context. Reuters said diesel prices have jumped to record highs. AAA’s record is $6.53 on Sept. 22; today’s average is about 21 cents below it (AAA).

What to watch: Valero’s results Thursday, EIA’s next weekly inventory report, and any new DPA awards. More on ENB: What the DPA push at Delek’s Tyler refinery means for your fuel bill; The IEA speeds up 20 million barrels of diesel; Two Russia waivers in a week, and no drop at the diesel pump.

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Appendix: Sources and Links

All times Central (CT). Fast-moving prices carry as-of times. “ENB calculation” marks Energy News Beat’s own arithmetic from the cited data. b/d = barrels per day; EIA capacity figures are barrels per calendar day unless noted.

A. Full source list

B. Key excerpts

Reuters via Union Leader, Oct. 20, 2026

“We are talking about reopening every refinery we can,” Energy Secretary Chris Wright said in Houston. “There are dialogues there, and that’s a tough challenge. I’m not saying all these are going to happen.” … Wright said the U.S. is also working with India to increase refining output there to bring products to global markets. … American Petroleum Institute CEO Mike Sommers told Reuters … that US refiners are running at 95% to 100% of capacity. He said they are putting off planned maintenance because of high prices. “The American refiners are doing everything they can,” Sommers said. … Last week, Vice President JD Vance said the administration would use the Defense Production Act to expand capacity of a Texas refinery owned by Delek US Holdings.

Reuters via Union Leader, Oct. 20, 2026

“Refinery expansions are capital intensive and take months, if not years, to complete depending on the complexity of the additions.” … “Russian diesel will likely move to New England, if it moves to the US at all, Wright said.”

Argus, Oct. 20, 2026

“The administration is engaging with every refinery that has been shut in the last 10 years ‘to find what’s the most practical one to get a refinery up and running’ … The talks include the most recent US refinery to shut down, Valero’s 145,000 b/d Benicia refinery in California, but ‘that’s a tough challenge’ … Wright said Tuesday that the expansions would tap into a $1bn fund … He also said the projects would be ‘heavily co-funded’ with industry. … Wright said Tuesday that Delek ‘had a very attractive proposal’ to increase throughput at the refinery ‘to a meaningful amount’.”

Reuters via Yahoo News, Oct. 13, 2026

“‘Today I am pleased to announce that the Trump Administration, working with the refinery at Delek, has used the Defense Production Act and we’re going to expand the refinery right here in Tyler, Texas,’ Vance said … The White House and Delek did not immediately respond to questions about how much funding is being allocated to the expansion or by how much it would increase refining capacity.”

The Hill, Oct. 13, 2026

“‘Refineries that are currently in operation are already making as much diesel as they possibly can,’ Lipow told The Hill last week. ‘There’s very little that the administration can do today to get more diesel fuel out of the refineries that are already in operation.’”

Valero, Benicia Refinery page

“In accordance with our plan, full idling of all processing units was completed in April 2026. While we continue to evaluate potential redevelopment options … we plan to maintain all required operating permits and keep the facilities in a safe, clean, and idled condition.”

LyondellBasell, Houston Refinery page

“In 2025, LyondellBasell (LYB) began decommissioning its refining business at the Houston Refinery, and the facility is no longer refining crude oil.”

Phillips 66, Oct. 1, 2025

“The final waterborne crude was received on Sept. 30, and the final crude processing date is expected to be around Oct. 16. … The remaining units will be idled in a phased manner through the end of 2025.”

VI Consortium, Oct. 21, 2026

“Port Hamilton Refining and Transportation is targeting 2027 for a phased restart … with plans to eventually exceed 200,000 barrels of production per day … the 2027 target remains dependent on completing financing and satisfying regulatory, engineering and other requirements.”

Plainview Energy Analytics, Sept. 14, 2026

“Federal backing under the DPA could accelerate similar quick-turnaround projects across numerous facilities, yielding a meaningful aggregate increase in fuel supply within 12 to 18 months.”

Heavy Duty Trucking, Oct. 20 and Oct. 14, 2026

ATA’s Bob Costello: “I’m not saying you’re going to see a big spike here, but I don’t think there’s gonna be much relief.” OOIDA’s Todd Spencer: “Every $1 increase per gallon in fuel costs our members around $400 more per week, and sustained high prices will put many truck drivers out of business.”

Bloomberg via Yahoo Finance, Oct. 19, 2026

“Citgo now expects full-year earnings before interest, taxes, depreciation and amortization of $7.7 to $8 billion … That’s up from the $5.8 billion the company forecast in second quarter earnings released in August.”

Reuters via Investing.com, Oct. 20, 2026

“Shell, BP and TotalEnergies all expect refining margins to increase three- to fourfold in the third quarter from a year ago, with Shell guiding for a record high of $42 a barrel. … Exxon signalled higher refining margins in the quarter could boost downstream profit by $4.5 billion versus the previous quarter.”

C. Data tables

C1. AAA national averages (checked 9:34 a.m. CT, Oct. 21, 2026; page states “Price as of 10/21/26”)

Source: AAA. ENB calculations: diesel vs. year ago = +$2.6960; 30 gallons × that = $80.88; diesel vs. record = −$0.2102.

C2. EIA weekly U.S. on-highway diesel ($/gal; Monday survey, released Oct. 20, 2026)

Source: EIA. Pre-war = last weekly reading before the war began Feb. 28, 2026. Record = highest in the EIA weekly diesel series (begins 1994).

C3. EIA weekly refining and distillate data (thousand b/d unless noted)

Sources: utilization, capacity, distillate production, distillate stocks, WPSR. Week ending Oct. 16 figures are from EIA’s Weekly Petroleum Status Report released Oct. 21, 2026 (Tables 1–2). Note: the Oct. 16 values come from EIA WPSR Tables 1–2. Same report: commercial crude stocks 412.5M bbl (−3.1M), total motor gasoline 205.3M bbl (−3.0M), distillate 104.3M bbl (+1.7M); year ago (Oct. 17, 2025) distillate 115.6M bbl and utilization 88.6%.

C4. Distillate stocks at this point in the year (nearest week to Oct. 16; million barrels)

Source: EIA WDISTUS1, weekly back to Aug. 1982. ENB calculation: 2021–2025 average for the week = 114.9M; 2026 is 9.3% below it and 9.7% below a year ago. Not an all-time low: the series low is 87.2M (April 19, 1996), and 2026’s low so far is 100.8M (May 22).

C5. Shut and idled refineries: capacity, status, sources

ENB calculation: the six sites in the article table total 1,234,522 b/d (145,000 + 220,000 + 263,776 + 139,000 + 255,600 + 211,146), 6.8% of the 18,044,000 b/d of U.S. operable capacity in the week to Oct. 16. The five shut or idled since 2020, excluding St. Croix, total 1,014,522 b/d. “Restart outlook” is ENB’s summary of the cited statements, not a forecast.

C6. Refiner earnings signals

D. Background

Distillate fuel oil is EIA’s category for diesel fuel and heating oil. It powers trucks, trains, farm equipment and ships, and its stocks matter more heading into winter heating season.

Refinery utilization is gross crude and other inputs divided by operable crude distillation capacity. Fall is usually a maintenance season, which lowers utilization; API’s Sommers says refiners are deferring planned maintenance this year (Reuters).

The Defense Production Act lets the president support industrial capacity deemed essential to national defense. Under Title III, Section 303 allows purchases, purchase commitments and other financial support; loans and loan guarantees are separate authorities (Shale Magazine). The administration designated domestic refining as essential to national defense in April (Plainview).

Refiners argued in a September meeting with the president that building new large refineries is impractical and that funds should go to debottlenecking existing plants (Plainview).

E. Timeline

F. Methodology

Prices: AAA national averages were read from AAA’s page at 9:34 a.m. CT Oct. 21 and match the lead’s $6.32 / $4.264. EIA weekly prices come from EIA’s Oct. 20 release (survey date Oct. 19).

Chart 4: EIA weekly U.S. on-highway diesel, January 2025 to Oct. 19, 2026, with AAA’s Oct. 21 daily average as a separate dot.

Chart 1: EIA weekly utilization (WPULEUS3), January 2025 to Oct. 16, 2026 (latest week from the Oct. 21 WPSR). The 95%–100% band is API’s stated range as reported by Reuters, not EIA data.

Chart 2 and the “lowest” claim: EIA weekly distillate stocks (WDISTUS1). For each year 1982–2025, ENB took the weekly reading nearest to Oct. 16 and compared it with 104,286 thousand barrels (week ending Oct. 16, 2026); every earlier year was higher (lowest prior: 106,187 in 2022). The claim is seasonal only: it is not an all-time low (series low 87,153 on April 19, 1996; 2026 low 100,799 on May 22). Because the history file had not yet added Oct. 16 at writing, ENB appended the value from EIA WPSR Tables 1–2. The chart’s range and average use ISO weeks of 2021–2025 (week-42 average 114.6M; the nearest-week 2021–2025 average used in the text is 114.9M).

Chart 3 and the refinery table: capacities from EIA where available (Benicia, Tyler, Alliance, Convent, Paulsboro), otherwise from company-linked reporting (LyondellBasell via Hydrocarbon Processing; Phillips 66 Los Angeles via Argus) and, for St. Croix, the company’s planned first phase. Statuses come from company statements and reporting linked in the table.

Wallet math: 30 gallons × ($6.3174 − $3.6214) = $80.88. OOIDA rule of thumb: $400 a week per $1 a gallon × $2.70 ≈ $1,078 a week. Illustrative; actual costs depend on miles, fuel economy and surcharges.

Price impact: ENB did not estimate one. No cited source provides one.

G. What ENB could not confirm

• A price impact from restarts or the Delek expansion. ENB found no sourced estimate from the administration, Delek, EIA or analysts of how much these steps would lower diesel prices, or when.
• The size, cost and schedule of the Delek Tyler expansion, and which DPA authority funds it. Reuters and Shale Magazine report these were not disclosed.
• Which other refineries the administration is talking to, beyond Benicia (Argus). Wright named no others in the coverage ENB read.
• Details of the India refining effort. Reuters reports Wright’s statement only as a paraphrase; ENB found no DOE or Indian government statement.
• The measure behind API’s “95% to 100%” utilization figure. It is a Reuters paraphrase; EIA’s weekly figure for the week to Oct. 16 is 93.4%.
• Paulsboro idle capacity owner. EIA lists 32,000 b/d of idle crude capacity at Paulsboro, N.J., under CPI Operations LLC; Plainview describes about 35,000 b/d offline at PBF Energy’s Paulsboro refinery. ENB did not confirm the operator relationship or any restart plan.
• Par Pacific’s “Kapolei West” plant. Plainview calls it idle since late 2021; ENB did not find a company statement on its capacity or restart, so it is left out of the article table.
• Port Hamilton’s financing and the identity of its crude supplier and fuel buyer (undisclosed, per VI Consortium citing Bloomberg).
• An aggregator listing (fiscal.ai) titled “Valero Energy Reports Third Quarter 2026 Financial Results” dated Oct. 16. ENB could not open its content; Valero’s own investor site says results come Oct. 22.

H. Corrections to early reports