Trump is set to meet major US oil refiners as gasoline prices remain above $4 a gallon, following repeated accusations of profiteering by the industry.
US refiners reported strong second-quarter profits, with Marathon Petroleum, Phillips 66 and Valero Energy posting a combined $12.6 billion, even as fuel prices stayed elevated.
The White House wants refiners to expand capacity and increase fuel supplies, while executives are expected to raise concerns over biofuel policies and the Jones Act.
Trump vs Oil Refiners: Inside The High-Stakes Push To Cut US Gas Price
US President Donald Trump is set to meet oil refiners at the White House as gasoline prices stay above $4 a gallon, putting pressure on an industry that has reported bumper profits amid the Iran conflict
Summary
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US President Donald Trump is set to meet oil refiners at the White House on Tuesday, as his administration pushes to expand domestic refining capacity and bring down gasoline prices that have remained elevated amid the Iran conflict.
The meeting comes after Trump repeatedly accused refiners of profiteering and called for a Justice Department investigation into higher gasoline prices. He has also urged oil companies to use their strong earnings to help reduce prices at the pump.
Gasoline prices are currently averaging more than $4 a gallon, with the American Automobile Association saying August is on track to be the most expensive August on record.
Refiners Under Pressure
US refiners benefited from stronger gasoline and diesel margins in the second quarter as disruptions to global fuel supplies boosted demand for American exports.
Marathon Petroleum, Phillips 66 and Valero Energy — three of the country's largest refiners — reported a combined $12.6 billion in second-quarter profits, according to Reuters.
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The White House has argued that refinery closures and weaker investment under previous Democratic administrations have left the US with limited spare capacity.
A White House official said US refineries are operating at nearly 100% of existing capacity, prompting the administration to seek “concrete, near-term steps” to expand capacity and ultimately lower gasoline prices.
Who Is Attending?
Companies expected at the meeting include Marathon Petroleum, Delek US Holdings, Chevron, PBF Energy and Valero Energy, according to people familiar with the plans.
Exxon Mobil has reportedly not been invited, following a public disagreement between Trump and CEO Darren Woods earlier this year.
At a White House meeting in January, Woods described Venezuela as “uninvestable” in its then-current form. Trump later said he was inclined to keep Exxon out of Venezuela, accusing the company of “playing too cute”.
Neither the White House nor Exxon commented on the reported attendee list.
Refiners Have Their Own Concerns
The meeting also gives executives an opportunity to raise industry concerns directly with Trump, including biofuel policy and the Jones Act, which affects the cost and availability of fuel shipments between US ports.
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The administration is simultaneously working to increase flows of Venezuelan crude to US refineries.
Trump has made cheaper energy a central part of his economic agenda, but gasoline prices surged after the Iran conflict began in February and crossed $4 a gallon in the spring.
The White House meeting will therefore test whether Trump's pressure on refiners can translate into greater refining capacity and lower fuel prices, while maintaining cooperation with an industry that has increasingly come under fire from the president.