US Plans Diesel Reserve Loan as Prices Soar

Diesel prices remain exceptionally high nationwide, although recent increases have slowed in many states, while tight fuel supplies and global tensions—including the Iran war, disruptions to Russian refining, and uncertainty over sanctions—continue to unsettle markets. U.S. distillate inventories are falling as winter heating demand approaches, prompting the Trump administration to plan a loan of 315,000 barrels from the Northeast Home Heating Oil Reserve. The high costs are squeezing truckers and owner-operators, especially in California, and threaten to raise food prices because diesel powers farm equipment and much of the freight network that moves groceries. China’s diesel production is another potential source of global supply, but refinery output and geopolitical developments remain key uncertainties.