The Biden Administration is considering tapping into an emergency diesel reserve to help address rising fuel costs in the United States.
According to Reuters, the Biden Administration may utilize diesel fuel from its Northeast Home Heating Oil Reserve, which was established in 2000 to compensate for interruptions in fuel supply during severe winter weather. The first and only time the government has tapped into reserve was in 2012 amid a shortage of diesel fuel following Hurricane Sandy.
While tapping into the emergency reserve will put more diesel on the market, it’s unlikely to have much impact on the price of diesel in most parts of the country, as the supply only has about 1 million barrels of diesel fuel in it. According to the U.S. Energy Information Administration, the U.S. transportation sector burned 44.61 billion gallons (1.06 billion barrels) of distillate fuel in 2020, an average of about 122 million gallons per day.
“We have teed up this reserve option to stay ahead of the problem, and will not hesitate to use other levers at our disposal to support families and the recovery,” a White House official said, as quoted by Reuters.
Rising diesel fuel costs can lead to higher prices for almost all commodities and consumer goods, as the majority of these items are transported by trucks and trains with diesel engines. Most construction and farming vehicles also use diesel.
Speaking during a media appearance in Iowa in April, President Biden partly attributed rising fuel costs to Russia’s invasion of neighboring Ukraine.
“Putin’s invasion of Ukraine has driven up gas prices and food prices all over the world,” Biden said. “So everything is going up. We saw it in today’s inflation data. Seventy percent of the increase in prices in March came from Putin’s price hike in gasoline.”
While data from the U.S. EIA shows the price of a gallon of diesel fuel has been steadily rising since late 2020, a much steeper hike is observable after the Ukraine-Russia conflict started in late February.
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Sales decreased 5.6 percent to 16,670 units during the first ten months of 2024.
Specifically critical minerals supply chain development.
Scheduled for a Spring 2025 launch.
Horsepower and grip take the win.
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We are in a period of transition so just suck it up until you can get a electric vehicle.
It will all got back to normal when the new President comes into office in 2025. The electric vehicle fad will go away eventually.
Cry little boy.
Sarcastic?
This man is an embarrassment to our country…
Trump was the embarrassment. Biden is not a good president I wouldn't even say average, definitely between bad and and below average. Trump however was a joke.
This is insanely dangerous. The strategic reserves are for when in a war, when refineries and rigs are targeted you have fuel already waiting to go. Bidens draining this out with no plans for replacement. Should we get into a shooting war with China, like we almost are with Russia, we will be sunk. He needs to be impeached on this alone, as with the information on hunters laptop, this almost seams like an intentional destruction of our energy in support of China.
I know that's right
People yapping their jaws about things they know nothing about. Please. Tell us more, your insight is so valuable.
The old senile dude is delusional! It didn't work with gasoline and it will not work with diesel! Stop wasting our reserves, they are for emergency use only! Start drilling all over again, and once again we will become energy independent!
When the time comes to refill the Strategic Stockpiles the price will be double what it was when it was last filled. Great policy.
Whomever refills it (won’t be Brandon) will be super pro oil and will drive the price down to 20-30$ a barrel before redoing it.
Washington,what a Joke!!!
Since when does the president dictate fuel prices? The comments about everything being the president’s fault is ridiculous. So the entire nation being pretty much shut down because of the virus, companies putting orders on hold so not to be stuck with an abundance of inventory. Money being given out in boat loads by BOTH administrations. The supply chain back ups at the ports. China shutting down some major parts of the country. The Russian invasion. Oil drilling companies went out of business in droves when oil dropped to record lows. The United States doesn’t drill, companies do and it doesn’t happen overnight. If so why didn’t they drill like mad under trump? But all of these things are The Presidents fault?? Please explain?
Maybe you might want to explain why Gasoline prices were half of what they are now under Trump? It may have had something to do with the energy policies that Trump put in place when he was President. BTW, Government energy policies of the day either allow companies to drill or not to drill...
I'm sure if you could find a way to blame it on Trump, you'd do it in a heartbeat.
The president dictates fuel prices since he shut down the anwar rigs and Pennsylvania shale oil. While the keystone was largely symbolic, he’s shuddered approx 20% of our active drilling, and stalled all future projects by dropping the federal leases from 35000 under the last Pressident to 9000, and those 9000 are largely empty wastelands that are knownto be oil dry and he’s asking double the fees for drilling.
Constitutionally he should not even have this jurisdiction as twice the Supreme Court has ordered Washington to return all federal lands to the states jurisdiction.
That's not dictating the price, that's retaliation for not getting what they want. It's called playing politics. Know the difference.
The oil industry has all of us by the balls as there is really no viable alternative, and since we are capitalist market, they can raise prices all they want just as long as we continue to buy their products.
The Keystone pipeline would have been completed by now and providing 900,000 barrels of oil per day which would have offset the Putin factor. The executive orders that hobbled The US energy industry are another big piece of the problem. If you listened to real news you would know the truth.
Don't forget Biden also approved the Russian pipeline while cancelling ours. This gave Russia new revenues to fund the invasion of the Ukraine.
It's the knuckle dragging sore losers who blame Biden for anything bad and give credit to the troll to anything good no matter how irrelevant or removed they were.
Basics being extra basic.
The strongest argument ever in favor of MAGA is Build Back Better
The idiot should not have terminated our oil independence immediately after taking office.
First, Brandon shuts down energy independence, then drains the gasoline reserves by going it to other countries, and NOW, he wants to "combat rising diesel prices" by draining those reserves? Very short-sighted when all the moron has to do is reinstate trump's energy policies.
This problem is Biden made. The american people are getting screwed!
Hey Joe ! Instead of build-back- better, how about put it back the way you found it ?