As diesel fuel reached the national average of $5.554 a gallon on Monday, the White House is considering tapping into emergency stockpiles as a rare measure to help inflation plaguing Americans.
A senior White House official said President Biden was considering a declaration of emergency that would release diesel from stockpiles to address supply issues. CNN. “The system is definitely under pressure,” the official told the news.
Record high diesel prices have been a problem for consumers who need the fuel they need to power farms and construction equipment, trucks, trains and boats. These costs have disrupted supply chains and pushed inflation to its highest level in 40 years.
Prices soared from 2021 as diesel inventories plunged into crisis. A year ago today, the diesel price stood at $3.178. American Automobile Association (AAA). The AAA said that it hit a record high of $5.577 on the day.
CNN reported that at least one expert predicts diesel will reach $10 a gallon by the end of the summer.
Andy Lipow, president of Lipow Oil Associates, told CNN: “The stockpile is expected to be relatively small in terms of daily supply, but it can buy weeks or months, but it’s not going away.” said. fundamental problem”
“It’s a band-aid. It doesn’t last long and doesn’t heal when you take it off,” he added.
The last release of diesel from the Northeast Home Heating Oil Reserve was after Superstorm Sandy in 2012.
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