Prices at the pump are slowly declining unless you're in the market for diesel fuel. If you've been holding out hope that those prices will follow suit, you might have to reconsider — the U.S. has just a 25-day supply of diesel fuel, the lowest it's been since 2008. The dwindling supply comes just ahead of the high demand brought by winter-induced heating fuel needs, making for an even more precarious dilemma. Diesel inventories are "unacceptably low," noting that "all options are on the table" to reduce prices and replenish the supply, National Economic Council Director Brian Deese says.
The US is down to 25 days of diesel supply as a top @WhiteHouse official declared the stockpile levels to be “unacceptably low.”
— The Epoch Times (@EpochTimes) October 23, 2022
Diesel stockpiles are at their lowest level for October in records dating back to 1993. https://t.co/0v5y6zzMMY
Diesel — which is used in construction vehicles, semitrucks, trains, farm equipment, and passenger vehicles — is a crucial component of the transportation industry, and if the stockpile doesn't get replenished, the rising cost of transporting goods could spark a new wave of inflation.
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The federal government does have some tools in its back pocket to recoup from the inventory disruption, including 1 million barrels at the Northeast Home Heating Oil Reserve, but the Washington Post says that even if all 1 million barrels were brought in, there wouldn't be a drop left after about six hours.
The U.S. also has a shipment of about 90,000 metric tons of diesel and jet fuel coming from the United Arab Emirates. Further, the Biden Administration is considering limiting fuel exports to lower fuel prices for consumers after already announcing plans to tap into emergency oil reserves.
