Trump plans to meet with oil refining giants next week to discuss high oil prices, urgently seeking a "cooling" solution before the midterm elections.

U.S. President Donald Trump plans to meet with executives from the American refining industry next week, as the ongoing war in Iran continues to drive up gasoline prices, increasing pressure on living standards. According to sources familiar with the matter, the meeting is set to take place at 1 PM local time on September 1, and representatives from at least ten fuel production and distribution companies will be in attendance. These individuals requested anonymity as the details of the meeting are not public. Some insiders indicated that this meeting would provide Trump with an opportunity to hear directly from industry executives, discussing market trends, possible measures to lower gasoline prices, and ways to enhance domestic refining capacity. The White House did not immediately respond to requests for comments 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 insiders, the guest list includes Marathon Petroleum (MPC.US), Delek US Holdings Inc. (DK.US), Chevron Corporation (CVX.US), PBF Energy Inc. (PBF.US), and Valero Energy Corporation (VLO.US), among others. High prices for fuel and other consumer goods pose a political headwind for Trump. He has been striving to alleviate public concerns over the cost of living, particularly as the midterm elections in November will determine control of Congress. When he took office, Trump promised to keep oil prices down. Although the national average for unleaded gasoline fell to $2.79 per gallon in January, the price has since risen due to ongoing turmoil in the Middle East caused by the war in Iran. According to the American Automobile Association, current fuel prices in the U.S. are at the highest level for this time of year, with the average gasoline price exceeding $4 per gallon and the national average for diesel nearing $6 per gallon. Although gasoline prices have retreated from a peak of over $4.50 per gallon in May, they are still about $1 higher than the levels at the onset of the war on February 28. As the meeting approaches, the Trump administration is also exploring options to ease restrictions on Venezuelan oil supplies. Refiners like Valero and Chevron Corporation are among the major users of Venezuelan crude oil. Refiners are expected to propose suggestions at the meeting to expand domestic refining capacity or eliminate operational obstacles, which may involve potential adjustments to state and federal policies. Trump has expressed concern over industry concerns. During a January meeting with representatives from the oil industry, he directly asked Marathon Petroleum CEO Maryann Mannan, "Does our country need more refineries?" In recent years, U.S. refining capacity has continued to shrink. Domestic fuel producers currently have a daily processing capacity of approximately 18 million barrels, down from a peak of 19 million barrels in 2020. Last week, U.S. refineries processed a total of 17.4 million barrels of crude oil, indicating that facilities are operating near full capacity to meet both domestic demand and export orders in an increasingly tight global fuel market. Trump has previously issued presidential determinations invoking the Defense Production Act, allowing the use of federal funding to support refining and other energy projects on the grounds of national security. He has also permitted foreign vessels to transport oil and other commodities within the U.S., temporarily waiving long-standing provisions of the Jones Act regarding U.S.-flagged, U.S.-owned, and U.S.-crewed vessels, in an effort to ensure fuel supplies and lower costs during the war. However, in August, Trump narrowed the scope of the Jones Act exemption. Insiders indicated that if asked about this issue, some refiners might emphasize that this adjustment unnecessarily limits the relief effect. While the agenda for this meeting is broad, it is also expected to provide an opportunity for some refiners to express concerns about the Renewable Fuel Standard's biofuel blending quotas. The U.S. Environmental Protection Agency has indicated that it will decide by the end of this month whether to waive the obligations for some small refineries to meet the annual requirements for the use of corn ethanol and biodiesel made from soybean oil. The scope of these waivers, as well as whether the EPA will redistribute blending obligations to other refineries, is a contentious issue among Trumps key voter demographics, further deepening the rift between oil companies and agricultural interest groups. Earlier this year, the Trump administration set historically high biofuel blending requirements, which further increased costs for some refiners and raised the economic value of the waiver quotas, highlighting the stakes in this ongoing debate.