The Biden administration is concerned about the diesel scarcity, according to White House National Economic Council Director Brian Deese on Wednesday.
According to Deese, the White House is extremely concerned about national inventories of refined fuel products in general and diesel shortages in particular. The economic director added that the Biden administration is considering all possibilities, including limiting oil corporations’ shipments to Europe and other nations, to restock US gasoline stocks.
The distillate fuel oil, which is converted into diesel and other fuels, is at its lowest levels in the nation’s reserves since 2008, prompting the Biden administration to contemplate “emergency measures” to limit fuel exports. Exxon Mobil CEO Darren Woods and business associations cautioned Energy Secretary Jennifer Granholm in October that restricting exports might reduce supplies and drive up costs.
According to the EIA, national diesel prices have been climbing for more than two weeks and are almost at all-time highs. Diesel fuels multiple sectors, and the price of this fuel influences both transportation and winter heating expenditures. Deese stated that the East Coast was experiencing the most severe shortages due to the fact that the stockpiles in New England and the Central Atlantic are almost at an all-time low.
In addition, he warned that if stockpiles do not grow quickly enough, the administration might have to draw on the emergency fuel reserve in the Northeast.
Requests for response were not immediately answered by the White House.