Since President Donald Trump took office again in January 2025, he has resumed an energy agenda focused on strengthening domestic fossil fuel production.
This vision has important repercussions for the entire energy chain, including companies such as American Petroleum Co. Inc. (APC), which are dedicated to the distribution of fuels and lubricants, and not to production or refining.
With more than 40 years of experience in the Puerto Rican market, APC imports products of recognized brands such as Petro-Canada and Phillips 66. This places us in a strategic position, but also forces us to understand how international policies, tariffs and regulatory changes can affect our operation.
1. Energy emergency: increased production, but not for everyone.
The proclamation of a national energy emergency in January allowed the U.S. to expedite permits and reduce regulations to extract oil and gas domestically. This has led to an increase in local production.
For distributors such as APC, who do not directly mine or refine, the benefit is not immediate. However, an increase in global supply can improve product availability, generate international price stability and facilitate negotiations with our North American suppliers.
2. Reduction of regulations: indirect impact on logistics and costs.
Deregulation policies seek to reduce operating costs for producers and refiners, primarily within the U.S. While APC does not have extractive or industrial operations, any efficiency improvements by our suppliers (such as Petro-Canada or Phillips 66) can be reflected in more competitive pricing and faster delivery.
In other words, the benefits can be passed on to distributors like us throughout the value chain.
3. Tariffs: the big factor to monitor
One of the most controversial moves of this administration has been the imposition of 25% tariffs on most imported goods, with certain exemptions for energy products.
Fortunately, petroleum, gas and lubricants have been exempted from direct tariffs in most cases. However, trade relations are constantly evolving. For example, Trump recently imposed a tariff on countries that trade with Venezuela, and continues to review bilateral treaties with Canada and other nations.
For APC, which imports directly from Canada, these issues are of utmost importance. A sudden change in tariff rates could affect our import costs and, consequently, the final prices for our customers. Therefore, we are in constant contact with our international partners to anticipate any adjustments.
4. Energy infrastructure: opportunities for operational efficiency
Although APC is not involved in pipeline construction or refining, greater investment in energy infrastructure-such as ports, terminals, pipelines, and storage facilities-could improve logistical efficiency for receiving imported products in strategic locations such as Puerto Rico.
The more robust the regional energy infrastructure, the faster and safer we can move product from our suppliers to our customers.
5. Price volatility: more important than ever
The combination of increased production, trade tensions and geopolitical decisions has generated notable fluctuations in international crude oil prices. Even if APC does not deal with crude oil directly, these variations affect the costs of derivative products such as lubricants, diesel and gasoline.
Our responsibility is to anticipate these movements in order to offer stability in pricing and supply, despite a changing environment.
What does this mean for our customers?
At American Petroleum Co. we remain committed to what our customers value most:
- Stability of supply
- Competitive pricing based on market realities
- Exceptional and reliable service
We know that energy and trade policy can change at any time. Therefore, we constantly monitor the global environment and maintain direct communication with our international suppliers to protect the interests of our customers in Puerto Rico.
Sources:
- «Energy Policy of the United States.» Wikipedia, last modified April 2025. https://en.wikipedia.org/wiki/Energy_policy_of_the_United_States.
- «First 100 Days of the Second Donald Trump Presidency.» Wikipedia, April 2025. https://en.wikipedia.org/wiki/First_100_days_of_the_second_Donald_Trump_presidency.
- «Executive Order 14245.» Wikipedia, April 2025. https://en.wikipedia.org/wiki/Executive_Order_14245.
- Valdmanis, Richard. “Trump Administration to Hold Oil and Gas Lease Sale in Gulf of Mexico.” Reuters, 4 Apr. 2025. https://www.reuters.com/business/energy/trump-administration-hold-oil-gas-lease-sale-gulf-mexico-2025-04-04.
- «API Statement on Reciprocal Tariffs Excluding Oil and Natural Gas.» American Petroleum Institute, 2 Apr. 2025. https://www.api.org/news-policy-and-issues/news/2025/04/02/api-statement-on-reciprocal-tariffs-excluding-oil-and-natural-gas.
- «Oil Set for Worst Week in Months over Trump’s New Tariffs.» Reuters, 4 Apr. 2025. https://www.reuters.com/business/energy/oil-set-worst-week-months-over-trumps-new-tariffs-2025-04-04.