With gasoline prices pushed higher by the conflict with Iran, the Trump administration is planning to restart several previously shuttered oil refineries, including a struggling facility in the U.S. Virgin Islands. A White House official confirmed via email on Thursday that the administration "wants refineries across the country to resume operations, especially the St. Croix refinery." The official noted that this particular refinery draws attention for two reasons: its original design to process Venezuelan crude oil, and its "strategic value" due to its geographic location. According to the official, multiple companies have expressed interest in acquiring the refinery since April 2025, and those intentions intensified significantly following the U.S. capture of Venezuelan leader Nicolás Maduro and the takeover of infrastructure within Venezuela.
Three industry executives revealed that the White House has held multiple rounds of consultations regarding the restart of refineries, with discussions ranging from the Virgin Islands to California. White House spokesperson Taylor Rogers stated in a declaration: "Energy security is national security, and America's refining capacity is a core pillar to ensure our nation's continued access to safe, affordable, and stable energy." Rogers added, "The President's National Energy Dominance Council will continue to push for the reopening of idled refineries and support new refining projects, with the goal of lowering oil prices and strengthening national security."
This policy push comes against the backdrop of persistently high gasoline prices in the U.S. due to the Iranian conflict. Data from the American Automobile Association (AAA) shows that as of Thursday, the national average price for gasoline was approximately $4.10 per gallon, an increase of over one dollar since the conflict began earlier this year. The St. Croix refinery in question was shut down indefinitely in 2021. At that time, the U.S. Environmental Protection Agency ordered a 60-day shutdown due to an "imminent threat" to public health from crude oil spills and air pollutant emissions, leading to the facility's permanent closure. Refineries are responsible for processing crude oil into gasoline. While crude oil costs are typically the primary factor determining the price of gasoline at the pump, refining capacity also has a significant impact on fuel prices.
Comments