The Trump administration plans to sell Northeast diesel reserves to raise $1 billion to reduce the budget deficit.

The Trump administration in the United States is pushing for the sale of a diesel fuel reserve of up to 1 million barrels and plans to completely shut down this emergency stockpile established for winter heating in the Northeast region. The Department of Energy stated that the strategic reserve, known as the "Northeast Home Heating Oil Reserve," has hardly ever been used for its original purpose since its establishment, so selling it would be a more effective use of resources. According to recent details of the Department of Energy budget, the sale of the reserve is expected to generate $100 million in revenue for the federal government to reduce the budget deficit. However, this transaction requires approval from Congress. It is worth noting that the Biden administration also received authorization from Congress last year to sell and close a similarly sized gasoline emergency reserve. The international diesel futures market reacted swiftly to the news, with diesel prices rising by 3.5% on Monday, and as of 10:46 a.m. New York time, the increase is still at 1.9%. The rise in diesel prices is closely related to the overall rebound in the crude oil market on that day. The 1 million barrels of diesel inventory represent about a quarter of the total daily diesel demand in the United States. According to data from the Energy Information Administration (EIA), approximately 4% of American households still use heating oil as their primary winter heating source. Although the reserve has hardly ever been used for its original purpose of providing fuel during winter heating crises in the Northeast region, it did provide fuel support for emergency rescue workers in New York and New Jersey after Hurricane Sandy in 2012. Additionally, there have been instances of passive use during severe snowstorms in that year. This reserve was created during the Clinton administration with the intention of providing approximately a 10-day emergency supply of diesel for Northeast residents. According to the Department of Energy, this 10-day reserve time coincides with the transport of heating oil from the Gulf of Mexico to the Port of New York. Currently, these diesel reserves are distributed in commercial storage facilities in the Northeast region. Despite being established for many years, the strategic value of this reserve is increasingly being questioned as natural gas usage increases, home heating methods transition, and there have been no major heating oil crises in recent years. Selling off the reserve and using the funds to reduce the deficit has become a key focus of the Trump administration's policy. However, the success of the sale will depend on the attitude of Congress. The Biden administration's decision to sell gasoline reserves in the past has drawn criticism from some lawmakers who believe it may weaken the country's emergency response capabilities. Therefore, the Trump administration's push for the sale of diesel reserves may once again spark debate on national energy strategy and fiscal priorities.