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3mo ago

Trump Budget Proposes Sale of 1 Million-Barrel Northeast Home Heating Oil Reserve

Pending congressional approval the sale is designed to raise roughly $100 million for deficit reduction

U.S. President Donald Trump walks as he departs for Pennsylvania, on the South Lawn of the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Kent Nishimura/File Photo
US President Donald Trump speaks during a swearing-in ceremony for the new US ambassador to China.

Overview

  • The Trump administration’s fiscal year 2026 budget proposal seeks to sell a million barrels of ultra-low sulfur diesel from the Northeast Home Heating Oil Reserve.
  • Proceeds are earmarked for U.S. deficit reduction, with the Department of Energy estimating $100 million in revenue and potential savings from closing the facility.
  • The reserve was established in 2000 under President Clinton to cover about 10 days of regional heating oil needs but has been tapped only once during Hurricane Sandy in 2012.
  • Congress must authorize the sale and closure of the reserve, following a precedent when lawmakers approved a similar emergency gasoline stockpile sale last year.
  • Former President Biden had proposed expanding the heating oil reserve in November 2022 to guard against price spikes after Russia’s invasion of Ukraine.