Emergency Diesel Reserves Could Give Consumers Relief From Rising Prices

With diesel fuel hitting a national average of $5.554 a gallon on Monday, the White House is considering tapping the emergency stockpile in a rare move to help with the inflation that has been plaguing Americans.

An emergency declaration is being mulled by President Biden that would release diesel from the stockpile reserves to help address supply issues, a senior White House official told CNN. The official told the news outlet, “The system is definitely under strain.”

Record-high diesel prices have been an issue for consumers who need the fuel for powering farm and construction equipment, trucks, trains, and boats -– many of which move products across the country. Those costs have disrupted the supply chain and pushed inflation to its highest in four decades.

With diesel inventories in crisis, prices have skyrocketed since 2021. A year ago today, diesel prices sat at $3.178, according to the American Automobile Association (AAA). The record-high was set on Wednesday at $5.577, AAA said.

At least one expert predicts that diesel could hit $10 a gallon by the end of summer, CNN said.

Releases from the emergency stockpile are expected to be relatively small -– only about a day’s supply –- which Andy Lipow, president of Lipow Oil Associates, told CNN, “might buy a couple of weeks or even months, but it doesn’t solve the underlying issues.”

He added, “ It’s a Band-Aid –- one that isn’t going to last very long and when it comes off the injury is not healing.”

The last time diesel was released from the Northeast Home Heating Oil Reserve was after the Superstorm Sandy in 2012.