Trump Admin Invokes Defense Production Act to Boost Texas Diesel Output

Key Facts

1Vice President JD Vance announced the use of the 1950 Defense Production Act to expand a Texas refinery.

2The move aims to boost commercial and military-grade diesel production as prices remain above $6 per gallon.

Vice President JD Vance announced the invocation of the 1950 Defense Production Act to expand the Delek refinery in Tyler, Texas. Oilprice.com reported that the move is designed to boost both commercial and military-grade diesel production to address persistent supply shortages. The administration is utilizing these emergency-era authorities to increase capacity at the facility, which currently processes 74,000 barrels per day.

The government intervention targets diesel prices that have remained stubbornly high above $6 per gallon, with the national average recorded at $6.28 per gallon. Analysts from Saxo Bank and GasBuddy noted that global market pressures remain significant, with diesel futures in New York and London trading near $200 per barrel on October 13, 2026. This policy shift reflects a direct effort to provide relief to sectors like trucking and farming amid elevated energy costs.