Consumers should see some relief from the recent surge in gasoline costs within a relatively short period, John Catsimatidis said in an interview on Tuesday. Catsimatidis, a billionaire who owns a refinery in Pennsylvania and supermarket chains in New York, predicted that the worst of the price increases is behind the market and that fuel prices will recede "in the next month, worst case scenario, two months."
The escalation in pump prices has followed supply disruptions linked to the Israel-U.S. war with Iran. Those disruptions have pushed the U.S. national average price of gasoline up sharply - nearly 60 cents since joint U.S.-Israeli attacks on Iran began on February 28 - leaving the average at $3.58 a gallon on Wednesday, according to AAA data.
Diesel has climbed even more dramatically, rising by more than $1 a gallon. Consumer sentiment mirrors the price moves: a poll that closed on Monday found Americans expect fuel costs to be higher over the coming year.
Hostilities at sea have compounded the strain on oil flows. Three more ships were hit in the Strait of Hormuz on Wednesday as the conflict continued. The strait is a vital chokepoint for global oil shipments and its near-closure has prompted some Middle Eastern producers to cut crude output and led customers in Asia to scale back refinery runs.
Catsimatidis, who serves as chairman and chief executive officer of United Refining Co, said the episode highlights the vulnerability of U.S. fuel supplies and the need for stronger domestic capacity. He described the situation as an argument for additional investment in U.S. oil production and refining, but cautioned that such investment depends on consistent policy from the White House.
When asked whether he would consider upgrading or expanding United Refining’s 70,000 barrel-per-day refinery in Warren, Pennsylvania, Catsimatidis was unequivocal: "Absolutely, yes." He is also identified as a major Republican donor.
The U.S. has not opened a major new refinery in nearly half a century, and some energy specialists have questioned the case for a new domestic plant, particularly after President Trump on Tuesday announced the construction of a plant on the southern U.S. border. U.S. refining economics are further pressured by the commissioning of very large new refineries overseas, including mammoth facilities coming online in Nigeria and other locations.
Context and market implications
The episode has produced near-term upward pressure on retail fuel prices and refined product markets, while raising questions about longer-term refining economics in the U.S. Catsimatidis’s comments point to potential industry responses - including upgrades or expansions at existing refineries - but he emphasized that any such moves will hinge on policy stability.