US President Donald Trump's administration plans to direct up to $150 million to restore and expand the country's oil refining capacity. Washington will use the Defense Production Act mechanism to increase output of gasoline, diesel, and aviation fuel.

The US Department of Energy announced this on October 22.

Funding is provided under Title III of the Defense Production Act, which allows the state to support industrial facilities vital to national security. The funds are planned to be directed to increase refining volumes, develop storage systems for petroleum products, and improve logistics infrastructure.

According to the US Department of Energy, implementation of the program will increase production of petroleum products by several million gallons per day. At the same time, the department has not yet specified at which facilities capacity will be increased and when additional fuel output is expected.

US Energy Secretary Chris Wright said the government will cooperate with private companies to accelerate development of existing infrastructure. According to him, expansion of domestic refining should strengthen the country's energy security and help lower fuel costs for the public and businesses.

The program is part of broader state support for the energy sector. Earlier, the US provided $1 billion in federal funding for energy projects that are strategically important for national security.

The decision was made amid high prices for petroleum products and disruptions in global supplies due to conflict in the Middle East. The situation remains particularly tense in the diesel fuel market, where limited refining capacity increases the impact of supply shortages.

For now, this is about planned funding, not funds already allocated to specific enterprises. The US Department of Energy continues to select projects and promises to announce the results soon. The timing of the actual increase in production and the possible impact of the program on retail prices have not yet been determined.

Based on materials from: US Department of Energy