President Donald Trump is scheduled to meet with U.S. refiners and fuel distributors on Tuesday to discuss expanding refining capacity and lowering gasoline prices, according to people familiar with the planning. The administration aims to ease economic pressure on consumers stemming from the ongoing war with Iran ahead of the November congressional midterm elections.
Political Stakes and Consumer Pressures Ahead of Midterms
The political stakes are high for President Trump and fellow Republicans who are trying to defend narrow majorities in Congress during the November midterms, according to reporting by Reuters. The conflict with Iran has become increasingly unpopular among voters, while higher gasoline prices threaten to undercut Trump’s 2024 campaign promises regarding the cost of living. Reuters/Ipsos polling places Trump’s approval rating at 33%, with just 31% of Americans approving of the military conflict.
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U.S. regular gasoline prices have hovered above $4 a gallon, marking an increase of roughly $1 compared to a year ago. This surge creates a visible economic burden for voters heading to the polls. Although global crude prices surged as high as $112 a barrel earlier in the conflict, prices have since retreated as shipping through the Strait of Hormuz has partially resumed, according to Reuters.
Industry Earnings and Administration Criticism
The military conflict has disrupted global energy markets and tightened supplies of gasoline and other refined products by restricting energy flows through the Strait of Hormuz, a passageway through which 20% of the world’s oil flowed prior to the war that began on February 28. These disruptions drove strong second-quarter earnings for major U.S. oil companies and refiners.
Those robust financial results have drawn public criticism from Trump, who argues that energy companies benefiting from high prices should do more to lower costs for everyday consumers. Trump has publicly pressed major producers and refiners to reduce prices directly.
Expected Attendees at Tuesday’s Energy Meeting
Tuesday’s gathering is expected to draw executives from key refining corporations and major fuel retailers, according to two sources familiar with the scheduled talks. Expected corporate participants include:
- Valero Energy Corp
- Marathon Petroleum Corporation
- PBF Energy Inc
Administration officials plan to use the summit to highlight efforts to lower gasoline prices before voters cast their ballots in November.
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