Trump plans to meet with refinery giants next week to discuss high oil prices, urgently seeking “cooling” solutions before the midterm elections

According to Zhitong Finance APP, U.S. President Trump plans to meet with executives from the U.S. refining industry next week, as the ongoing war with Iran continues to drive up gasoline prices, putting increasing pressure on people's livelihoods.

According to sources, the meeting is scheduled for the afternoon of September 1 local time, with representatives from at least 10 fuel production and distribution companies expected to attend. Because the meeting details are not public, these sources requested anonymity.

Some insiders indicated that this meeting will give Trump a direct opportunity to hear opinions from industry executives. The discussion topics include market trends, possible measures to reduce gasoline prices, and how to enhance domestic refining capacity. The White House did not immediately respond to a request for comment on Friday.

The invited companies cover various sectors of the refining industry, including large integrated oil companies as well as smaller independent fuel producers. According to sources, the list includes Marathon Petroleum (MPC.US), Delek US Holdings Inc. (DK.US), Chevron (CVX.US), PBF Energy Inc. (PBF.US), and Valero Energy (VLO.US).

The continued high prices of fuel and other consumer goods are creating political headwinds for Trump. He has been trying hard to ease public concerns about the cost of living, while the midterm elections in November this year will determine which party controls Congress.

At the start of his term, Trump promised to curb oil prices. Although the nationwide average price for unleaded gasoline fell to $2.79 per gallon in January this year, prices have since surged as the situation in the Middle East has remained volatile due to the war with Iran.

According to data from the American Automobile Association, the current prices of fuel in the U.S. are at the highest levels for this time of year in history, with average gasoline prices surpassing $4 per gallon and average diesel prices nationwide approaching $6 per gallon. While gasoline prices have retreated somewhat from the peak of over $4.50 per gallon in May, they still stand about $1 higher than at the outbreak of the war on February 28.

The meeting comes as the Trump administration is also exploring ways to relax restrictions on Venezuelan oil supplies. Refiners like Valero and Chevron are among the major users of Venezuelan crude oil.

It is expected that refiners will propose suggestions at the meeting regarding expanding domestic refining capacity or removing operational obstacles, which could involve potential adjustments in state and federal policies.

Trump has already expressed his attention to industry concerns. In a meeting with oil industry representatives in January, he directly asked Marathon Petroleum CEO Maryann Mannen: "Does our country need more refineries?"

In recent years, U.S. refining capacity has continued to contract. Currently, domestic fuel producers have a daily processing capacity of around 18 million barrels, lower than the 19 million barrels at the 2020 peak. Last week, U.S. refineries processed a total of 17.4 million barrels of crude oil, indicating that facilities across the country are operating near full capacity to meet domestic demand and fulfill export orders amid a tight global fuel market.

Trump has previously issued a presidential decision invoking the Defense Production Act, allowing the use of federal funds to support refining and other energy projects on the grounds of national security.

He has also allowed foreign vessels to transport oil and other bulk commodities within the United States, temporarily waiving the long-standing requirements in the Jones Act regarding American-flagged, American-owned, and American-operated ships, in hopes of ensuring fuel supplies and reducing costs during the war period.

However, in August, Trump narrowed the applicable scope of the Jones Act waivers. According to sources, if asked about this issue, some refiners may stress that this adjustment unnecessarily limited the effectiveness of relief efforts.

Although the meeting agenda is extensive, it is also expected to provide an opportunity for some refiners to voice concerns regarding blending quotas for biofuels under the U.S. Renewable Fuel Standard. The Environmental Protection Agency has said it will decide by the end of this month whether to exempt certain small refineries from mandatory annual quotas to use corn ethanol and soybean oil-based biodiesel.

The scope of these waivers, and whether the EPA will redistribute the blending obligations of exempted refineries to others, is a source of heated debate among key Trump voter groups. It has also furthered the divergence between oil companies and agricultural interests. Earlier this year, the Trump administration set the highest-ever requirements for biofuel blending, further raising the costs for some refiners and dramatically increasing the economic value of such exemptions, thereby making the stakes of this contest more prominent.