JD Vance Says Trump Administration Tapping Wartime Powers to Expand a Texas Refinery — 'We Want Millions of Gallons' (UPDATED)

Editor’s Note: This story has been updated to include a comment from a White House spokesperson.

Vice President JD Vance said Tuesday that President Donald Trump‘s administration will tap wartime authority to expand fuel production at a Delek US Holdings Inc. (NYSE:DK) owned refinery in Tyler, Texas, with gas prices straining households weeks before the midterms.

Defense Production Act Will Expand Tyler Refinery

Speaking at a rally in Tyler, Vance said the administration, working with the Delek refinery, “has used the Defense Production Act” to expand the plant.

“We want millions of gallons of commercial-grade and military-spec fuel to come out of this refinery in addition to what it’s already producing,” he said.

The expansion would bring lower costs, a more reliable energy supply, a stronger national defense, and hundreds of new jobs in Smith County, according to the vice president.

He added that Trump has called on refineries across the country to boost production and bring energy prices down.

Vice President JD Vance in Texas:

"Today I am pleased to announce that the Trump Administration, working with the refinery at Delek, has used the Defense Production Act and we’re going to expand the refinery right here in Tyler, Texas." pic.twitter.com/QZ65dFz3GE

— Vice President JD Vance (@VP) October 13, 2026

It is unclear whether the administration will use the act beyond this one refinery.

A White House official, speaking on background, said the Tyler refinery is one of many the administration has been working with to award Defense Production Act funds, which let refiners make upgrades that increase crude, diesel and gasoline capacity.

Trump Turned to Wartime Powers for Energy

The Defense Production Act, a Cold War-era law, lets the president direct and fund increased production of goods deemed critical to national security.

In April, Trump signed five Defense Production Act determinations covering coal power, liquefied natural gas, domestic petroleum, and power-grid infrastructure, which allow the Energy Department to put federal funds behind such projects.

Pump Prices Remain a Political Test

The announcement comes as the wars in the Middle East and Ukraine keep oil prices elevated.

AAA puts the national average for regular at $4.33 a gallon, up about 41% from $3.08 a year ago, and diesel at $6.30, up about 72% from $3.66.

Gasoline jumped 9.1% in September and is up 34.2% from a year earlier, the Bureau of Labor Statistics reported Wednesday, pushing consumer prices up 3.7% year over year.

Last week, Russia agreed to send millions of tons of diesel to world markets.

Price Action: Shares of Delek US Holdings fell 2.20% on Wednesday at $78.97 and climbed 0.16% to $79.10 in extended trading.

Benzinga Edge rankings indicate Delek’s stock has a Momentum score in the 98th percentile and a Growth score in the 25th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Courtesy: Joshua Sukoff via Shutterstock.com