‘That's Actually the Biggest Reason Why Gas Prices Are So High’ — JD Vance Says 20% of U.S. Refining Capacity Went Offline Under Biden

Gasoline prices are putting pressure on drivers, and Vice President JD Vance says a major reason is that 20% of U.S. refining capacity went offline under then-President Joe Biden.

Vance Blames Biden and Iran for Higher Gas Prices

Detroit barber Keyshawn Wheatley, who voted for President Donald Trump in 2020 and 2024, told Vance at a CBS News town hall on Saturday that he was paying about $4.33 a gallon for gasoline. He asked how prices could return to the lower levels seen during Trump’s first term.

Vance acknowledged that prices were too high and pointed to the conflict in the Middle East.

"First of all, I recognize that gas prices are too high right now," Vance said. "And I think it’s important to be honest about why they are so elevated."

He then pointed to Iran’s attacks on commercial shipping as a factor pushing up fuel costs.

"The first thing that’s going on, obviously, is what’s happening in the Middle East, particularly the fact that the Iranians are shooting at every commercial ship that they can," Vance said. "It’s a global energy market, so that’s pushing up the price of fuel everywhere."

Vance also cited the administration’s use of the Defense Production Act to expand refining capacity in Texas before making his central argument.

"That’s actually the biggest reason why gas prices are so high is because when Joe Biden was president, we had about 20% of American refining capacity that went offline," he said. 

"We’re slowly bringing that online, but it does take a little bit of time," Vance continued. "And because we shut down so much refining capacity, we were more susceptible to the shock that we’ve seen in the Middle Eastern energy prices."

Vance later argued that the country had lost too much oil, gas and refining capacity, adding that rebuilding it takes time. He predicted gasoline prices would decline once the Iran conflict ends and argued that U.S. military efforts to protect shipping through the Strait of Hormuz had prevented prices from rising even higher.

The moderator pushed back on the administration’s timeline, noting that nearly two years had passed since Trump returned to office. The exchange also referenced Vance’s description of the price increase as a "temporary blip" in March. 

National Refining Data Challenge the 20% Figure

PolitiFact rated Vance’s claim "false," finding that the roughly 20% decline applied to California’s refining capacity, not the nation as a whole.

U.S. Energy Information Administration data show that operable atmospheric crude oil distillation capacity, the primary measure of refining capacity, remained relatively stable between early 2021 and the start of this year.

• Jan. 1, 2021 — 18.13 million barrels per calendar day
• Jan. 1, 2022 — 17.94 million barrels
• Jan. 1, 2023 — 18.06 million barrels
• Jan. 1, 2024 — 18.38 million barrels
• Jan. 1, 2025 — 18.42 million barrels
• Jan. 1, 2026 — 18.16 million barrels

Capacity recovered after the pandemic-related decline and expanded through early 2025 before edging lower. Recent refinery closures, including the LyondellBasell Houston refinery and Phillips 66’s Los Angeles facility, contributed to the latest reduction.

Iran Conflict Adds Pressure on Gasoline Prices

The Iran conflict has disrupted oil shipments through the Strait of Hormuz, a critical route for global energy supplies. Reduced shipping and damage to energy infrastructure in the Gulf region have added pressure to crude oil prices, which influence what drivers pay at the pump.

"The biggest factor influencing high gasoline prices is the elevated cost of crude oil, caused by the reduction in ship traffic through the Strait of Hormuz and damage to export and pipeline facilities in Saudi Arabia and other Gulf countries," Hugh Daigle, professor of petroleum and geosystems engineering at the University of Texas at Austin, told PolitiFact.

Other factors include refinery utilization, fuel demand, operating costs and global refining conditions. 

Vance’s argument centers on the idea that reduced domestic refining capacity left the U.S. less prepared for a global energy shock. The national data, however, show a far smaller decline than the 20% figure he cited, while the Iran conflict has added another source of pressure to fuel markets.

Image: Shutterstock