The White House is considering an emergency announcement to release diesel from a rarely used stockpile to deal with a major supply crisis and rising prices, an administration official said Monday.
US President Joe Biden has announced that tackling inflation and high gas prices is his administration’s priority ahead of the November congressional election. Republicans seeking to regain control of Congress have used price rises to push Democrats.
Diesel is essential to the U.S. economy, along with the farm and construction sectors, trucks, trains and boats that help move goods. Rising diesel prices help push up inflation, which has reached a 40-year high.
The White House is considering tapping the Northeast Home Heating Oil Reserve, which was created in 2000 to help with supply problems and was used only once in 2012 in the wake of Hurricane Sandy. The impact of such a release would be limited by the relatively small size of the reserve, which contains only 1 million barrels of diesel.
A White House official said, “We have created this reserve option to stay out of trouble, and we will not hesitate to use other levers for the disposal of families and our recovery.”
The national average price of diesel as of Sunday was $ 5.56 per gallon, which is more shameful than last week’s record of $ 5.58 set, according to AAA, a national motorist advocacy group. This is an increase of 75% over a year ago.
The average price of a gallon of regular gasoline is $ 4,596
The diesel situation is even worse in the northeastern United States, where several refineries have been shut down since 2000. In New York State, for example, the average price of a gallon of diesel is $ 6.52 per gallon, 102% higher than a year ago. From AAA
U.S. distillate stocks hit their lowest level since 2005 two weeks ago and now sit at 105.3 million barrels, while stocks on the U.S. East Coast hit all-time lows as of May 6, before rebounding to 22.5 million barrels in recent weeks. In the latest federal data.
The Biden administration has tapped the country’s essential oil reserves, known as the Strategic Petroleum Reserve, to help tackle rising energy prices. It currently contains 420 million barrels of crude oil, despite recent releases.