Refining Push Considered as Diesel Prices Hit New Highs

With normal gasoline well above $4.20 and national average diesel prices over $6 per gallon, the Trump administration is under increasing pressure to use all legislative tools at its disposal to control fuel costs in the run-up to the midterm elections. The worldwide refining super crunch is getting worse as a result of disruptions caused by the war between Russia and Ukraine and the instability in the Gulf.

As fuel prices continue to rise due to the dispute with Iran, Reuters reports that the Trump administration is contemplating the possibility of expanding U.S. oil refining capacity through the Defense Production Act.

During a recent discussion with almost a dozen U.S. refiners, the idea to use the act was discussed, according to sources. White House officials were trying to figure out how to boost capacity with federal help. The sources state that no final conclusions were reached during the conference, and that attendees departed with the understanding that the discussions would persist.

U.S. refineries are already running close to capacity, so increasing capacity is a mixed bag. According to the most recent numbers, utilization has above 98%.

These talks follow Trump’s April decision to authorize Defense Production Act support for domestic petroleum production, refining, and logistics. The directive listed several challenges to capacity expansion, including a lack of funding, lengthy building schedules, delays in permits, and limitations in the supply chain.

In order to guaranty that the US always has access to safe, cheap, and dependable energy, the refining capability of the US is crucial. The President and his energy team are actively exploring ways to boost our refining capacity, said to White House spokesperson Taylor Rogers. They are considering regulatory change, speedier permitting, and more investment, among other options.

An example of Trump’s desire to increase the United States’ refining capacity is a new refinery that is being considered for Brownsville, Texas. Dozens of questions remained about the project’s eligibility for Defense Production Act funds.

The announcement was made by Trump in March that America First Refining would construct a 168,000-barrel-per-day refinery in the Port of Brownsville, marking the first new refinery in the United States in nearly half a century.Reliance Industries of India has committed to purchasing the refinery’s products for the next two decades, lending their support to the project.

In March, Natasha Kaneva, head of commodity research at JPMorgan, listed six policy tools at the Trump administration’s disposal to rein in oil prices. Some have previously been utilized, such as the Jones Act waivers and the releases of the Strategic Petroleum Reserve. Restrictions on exports and the elimination of federal gasoline taxes are two more possibilities.

Diesel, the fuel that powers much of the U.S. and global economy, has reached $5.85 per gallon

(September 4, 2026, DALLAS) – GasBuddy, North America’s trusted fuel savings platform for more than 25 years, today announced that the national average price of diesel has reached a new all-time record high of $5.85 per gallon, continuing to climb and surpassing the previous record of $5.82 per gallon set in June 2022.

While gasoline prices often dominate headlines, diesel can have a much broader impact on inflation and business costs. Diesel powers much of the U.S. economy, including freight trucks, trains, agricultural equipment, and construction machinery. As diesel prices rise, transportation costs increase, often leading to higher prices for consumer goods and services.

According to GasBuddy data, more than 515,000 unique users reported fuel prices in August 2026 alone, contributing to one of North America’s most comprehensive real-time fuel price datasets and reflecting the scale of GasBuddy’s highly engaged consumer driver community.

“Diesel is the fuel that moves the economy, and when diesel prices reach record levels, the impact extends far beyond the transportation sector,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Higher diesel prices impact consumers as rising supply chain costs increase the price of groceries, household goods, deliveries, and countless other products Americans rely on every day.”

Diesel prices have climbed sharply in recent months as geopolitical tensions and supply chain disruptions continue to drive volatility in global energy markets. Higher oil prices, reduced refining capacity abroad, and tight global inventories have all contributed to rising diesel and gasoline prices. As a result, diesel prices are up over $2/gal from a year ago (September 2025: $3.70/gal diesel).

As fuel costs increase, drivers continue turning to savings tools to help stretch their budgets. With more than 150 million downloads and hundreds of thousands of fuel price contributors each month, GasBuddy helps drivers save money while giving brands access to a large, highly engaged audience actively making purchasing decisions both at and beyond the pump. GasBuddy recommends drivers use the GasBuddy app to compare local prices and identify savings opportunities as fuel market volatility continues. Drivers can also become a Pay with GasBuddy+™ member to save up to 33¢/gal off with an activated Flash Deal in the GasBuddy app, which includes savings on diesel. In August 2026 alone, some Pay with GasBuddy+™ members saved more than $80 at the pump through Flash Deals.

Diesel Price Milestones

September 2026: $5.85/gal (new record)
September 2025: $3.70/gal (one year ago)
June 2022: $5.82/gal (previous record)

About GasBuddy

GasBuddy is the savings platform that empowers drivers to choose their road to savings. With over 150 million downloads, industry-leading real-time fuel price data, rewards and discounts that go further than gas, and the Pay with GasBuddy+ membership program, GasBuddy is reshaping everyday savings and mobility. Owned and operated by PDI Technologies, GasBuddy connects top brands with millions of digitally engaged consumers—wherever the road takes them—by unlocking data and insights into purchase patterns through a frictionless experience. To learn more about GasBuddy, visit gasbuddy.com.