Trump adviser cites refining constraints as driver of high gas prices

Jarrod Agen, an energy adviser to President Donald Trump, attributed elevated gasoline prices to strained refining capacity during an Axios House event held on Tuesday. The national average gas price stood at roughly $4.48 on Tuesday, up from approximately $3.18 a year earlier, according to AAA data. Agen stated that while crude oil is flowing, the ability to process that crude into fuel remains the primary bottleneck affecting consumer costs.

The adviser framed the issue as a domestic and global capacity problem rather than a shortage of raw materials. He noted that refining capacity in Russia has declined by 30 to 40 percent, while China is not operating at its full potential. "We've got crude flowing," Agen said, though he acknowledged that the full picture of oil leaving the Strait of Hormuz is not yet entirely clear. He argued that more crude is available on the market, but the conversion of that crude into usable fuel is where the administration is focused.

Agen suggested that the government might utilize the Defense Production Act to address these refining constraints. President Trump has already invoked this act, and Agen indicated that infrastructure projects could also be part of the strategy to attack the refining issue. These measures aim to alleviate the pressure on fuel prices as overseas conflicts, including the war in Iran, continue to rattle oil markets.

The rising costs threaten an expensive winter for millions of households and have already impacted other fuel sectors. The national average diesel price shattered its record earlier this month and subsequently topped $6 a gallon for the first time. Brown University estimates that U.S. households have borne over $100 billion in additional energy costs due to the conflict in Iran. These financial burdens add to the administration's challenges ahead of the midterms, where Republicans are fighting to retain control of Congress.

Disruptions in the Strait of Hormuz and other compounding crises have forced American refineries to operate near maximum capacity. This unprecedented test has raised questions about whether the administration would implement an export ban on American diesel. Agen maintained that affordability remains the top issue for the president, echoing previous comments where he described pump prices as a daily driver for administration policy. He stated that the long-term goal of preventing Iran from having nuclear capabilities is viewed by the president as worth the short-term economic impact.