Ahead of the all-important midterms, the Donald Trump administration will loan up to 315,000 barrels of heating oil from the US Northeast Home Heating Oil Reserve as it seeks to contain rising fuel costs linked to the Iran war and disruptions to supplies from Russia.
The Department of Energy said on Wednesday that the release would help get fuel to areas facing shortages, with deliveries expected to be completed by November 13.
The DoE envisions the move covering nearly a third of the reserve’s one-million-barrel stockpile.
The fuel retailers and terminal holders would be able to bid through a competitive process for the loans, which will come from storage sites in Maine, Massachusetts, and Connecticut.
“Officials will assess whether further releases are needed,” reported Reuters.
Senators from both parties have expressed their concerns about the price increase, particularly regarding emergency heating oil.
Heating oil and diesel come from the same refining stream, leaving the two markets exposed to many of the same supply pressures.
Retail diesel prices averaged about USD 6.32 a gallon on Tuesday, according to motorist group AAA, while prices in some markets had risen above USD 6.50.
High energy costs have already transitioned into a political issue ahead of the November 3 midterm elections.
Republicans’ bid to retain control of both chambers of Congress is facing stiff opposition among the voters, not only due to the rising fuel prices but also due to Trump’s mishandling of the economy.
Heating oil is particularly important in the Northeast. About one-third of homes in New England use it, with the share reaching about half of households in Maine.
The region’s reliance on the fuel makes the reserve a targeted tool for addressing local supply pressures, although the amount being released is small compared with the scale of the wider US fuel market.
The Northeast Home Heating Oil Reserve has been used only once since Hurricane Sandy struck the region in 2012.
Its latest drawdown is part of a broader set of measures the Trump administration has pursued since the beginning of the Iran war, accompanied by other steps like relaxing restrictions on Russian diesel exports, invoking the Defense Production Act to encourage higher output and allowing commercial vehicles to use red-dyed diesel normally reserved for off-road equipment.
Energy Secretary Chris Wright stated that the administration was “dedicated to taking all possible measures to reduce energy costs.”
The department has also backed the Williams Companies’ Constitution natural gas pipeline, which would carry gas produced in Pennsylvania to homes in New York and New England.
This week, the government released up to USD 42 million in Cold War-era Defense Production Act funding for initial work on the project.
New York, however, has been blocking the pipeline on environmental grounds.
Officials are pursuing a second track: finding ways to increase refinery output.
Two senior Energy Department officials told Reuters that they were working with refiners back home and abroad to boost fuel production.
Wright noted that the Trump administration was considering reopening shut-down refineries, but he warned that the effort would be challenging.
“We are talking about reopening every refinery we can,” Wright said in Houston.
“There are dialogues there, and that’s a tough challenge. I’m not saying all these are going to happen.”
US refineries are already operating close to capacity, leaving little room to respond quickly to a surge in demand or a disruption to imports.
Several facilities have closed recently, while expanding existing plants requires substantial investment and can take months or years, depending on the complexity of the work.
Mike Sommers, chief executive of the American Petroleum Institute, told Reuters that US refiners were running at between 95% and 100% of capacity.
Some are postponing planned maintenance because prices are high.
“The American refiners are doing everything they can,” Sommers said, adding that restarting idled plants through the Defense Production Act would require significant capital.
Last week, Vice President JD Vance said the administration would use the act to expand capacity at a Texas refinery owned by Delek US Holdings.
Legislation signed by Trump in 2025 included USD 1 billion in Defense Production Act funding for energy-related projects deemed critical to national security.
Wright said there was “more to do” on refining and the act but offered no further details.
The United States is also reportedly working with India to increase refining output there so that more products could reach global markets.
Officials have also pressed European countries to release more fuel into the market.
Energy Department Under Secretary Kyle Haustveit said the government was working with partners to find “new and innovative ways to get more throughput” through refineries.
The administration has urged Europe to release 50 million barrels of diesel, but an agreement among industrialised nations fell short of that target.
The International Energy Agency (IEA) said last week that it would accelerate the release of crude and oil products pledged in March, including well over 20 million barrels of diesel as soon as possible.
IEA chief Fatih Birol said on Tuesday that the agency was ready to coordinate further releases from member countries if necessary.
China’s export policy is another factor in the supply picture. Sommers said China had spare refining capacity but was barring diesel exports.
“Beijing is really going to be the key if we’re going to get long-term prices down,” he said.
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A spokesperson for the Chinese embassy in Washington, while reacting to developments, said a ceasefire in Iran was central to resolving the problem, adding that the Xi Jinping administration was ready to maintain communication with all sides to safeguard energy security and keep industrial and supply chains stable.
Russian diesel is also expected to reach the United States following a deal between Trump and Russian President Vladimir Putin.
The Trump administration temporarily waived sanctions on Russian diesel this month in an attempt to lower prices.
Wright said Russian fuel would most likely move to New England if it came to the United States at all.
Cargoes have already begun returning to traditional destinations after Washington suspended sanctions, with two tankers signalling voyages to Turkey and Brazil recently, Reuters reported on Tuesday.
Russia is preparing its first tanker shipment of diesel to the United States, with Deputy Prime Minister Alexander Novak saying the vessel would depart on Thursday.
The cargo will carry 40,000 metric tons of fuel, and paperwork for the supply was nearing completion, according to media reports.
“Additional shipments will follow, of course,” Novak said, according to the RIA news agency.
“There were agreements reached between the two leaders. We will meet the United States’ needs to the extent of our capabilities.”
Trump has said Russia would immediately export 300,000 metric tons, equivalent to about 2.25 million barrels, followed by 500,000 tons in November and one million tons “immediately thereafter.”
The United States exports about 1.5 million barrels of diesel per day, meaning any incoming Russian volumes would enter a market that is itself a major supplier to other countries.
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Putin reportedly hosted US special envoy Steve Witkoff in St. Petersburg on Wednesday, after the diesel deal contributed to a sharp deterioration in relations between Washington and Kyiv.
During the talks, Witkoff thanked Putin for lifting export restrictions.
Putin said global diesel prices had fallen by 5% to 6% after the agreement and said the first tankers would depart in two to three days.
He added that Russia could also supply fertilisers to the US market in “large quantities.”
For consumers and businesses, the ongoing price pressure is broader than heating bills.
Diesel powers American freight transport, agriculture, and heavy industry, making it central to the movement of goods and the wider economy.
Higher diesel costs can raise expenses for trucking, farming, and manufacturing, while heating oil prices put a direct burden on households as colder weather approaches.
While the Trump administration’s move to tap reserve loans can direct fuel to specific areas quickly, international stock releases and changes to export restrictions may add further supplies.
Restarting refineries or expanding capacity is slower and pricier. If the Iran war continues to disrupt energy flows, extra supplies may struggle to offset the shock.
For now, the Department of Energy will evaluate whether further heating oil releases are necessary.
The immediate goal is to transport fuel to areas experiencing shortages before the November 13 delivery deadline.
In the long run, sustained relief will depend on refinery output, international cargoes, and the course of the conflicts affecting global energy markets.
Image Courtesy: White House