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An industrial manufacturing plant in Eyota, Minnesota, shown in an illustrative image.
US to Loan Nearly One-Third of Emergency Heating Oil Reserve to Ease Prices
WASHINGTON — October 21, 2026
The United States plans to make up to 315,000 barrels of emergency heating oil available to fuel suppliers, aiming to ease rising energy costs ahead of winter. The Department of Energy said the loans would come from the Northeast Home Heating Oil Reserve, which holds about 1 million barrels.
The decision follows calls from senators in both major political parties for the administration to release fuel from the reserve. The government will assess whether additional supplies are needed after the initial release.
Heating oil is widely used to warm homes in the northeastern United States and is similar in composition to diesel fuel. Energy prices have climbed amid disruptions linked to the war involving Iran, while the Trump administration has also blamed Ukrainian attacks on Russian oil refineries for contributing to higher prices.
The Energy Department said the fuel would be made available through a competitive bidding process open to fuel retailers and companies that operate storage terminals. The loans are intended to help supplies reach areas experiencing shortages, with deliveries scheduled to be completed by November 13.
The emergency reserve is stored at facilities in Maine, Massachusetts, Connecticut and New Jersey. The United States has used the stockpile only once before, following Hurricane Sandy in 2012, which disrupted parts of the northeastern region.
Heating oil costs are particularly important in New England, where roughly one-third of homes rely on the fuel. In Maine, about half of households use heating oil, leaving many residents exposed to price increases during the colder months.
The issue has also become politically significant ahead of the November 3 midterm elections, when voters will choose members of Congress. Republicans are seeking to retain control of both the House of Representatives and the Senate, and high energy costs have become a concern in closely contested Senate races.
Maine Republican Senator Susan Collins, who is seeking re-election, welcomed the administration's decision. She said the release would increase New England's available supply by 13% and help reduce heating costs during winter.
Energy Secretary Chris Wright said the administration was committed to taking steps to lower energy costs. However, some industry analysts questioned whether the planned release would make a meaningful difference to prices.
Tom Kloza, chief energy adviser at Gulf Oil, said the move was unlikely to have a significant effect on prices. His assessment points to the limits of releasing a relatively small amount of fuel when wider market disruptions are driving costs higher.
Average US retail diesel prices have recently been around $6.32 per gallon, according to the American Automobile Association. Prices reached a record $6.52 per gallon in the previous month, adding to concerns about the cost of fuel and home heating.
The planned heating oil loans come alongside a much larger effort to address rising crude oil prices. The administration has agreed to loan 172 million barrels of crude oil from the Strategic Petroleum Reserve, the country's main emergency stockpile, which is held along the coasts of Texas and Louisiana. Its inventory has fallen to its lowest level since 1982.
The administration is also supporting the Constitution natural gas pipeline project developed by Williams Companies. The proposed pipeline would transport natural gas produced in Pennsylvania to homes in New York and New England, providing another potential source of heating fuel for the region.
The immediate impact of the heating oil release remains uncertain. While the additional supplies could help areas facing shortages, analysts have questioned whether the limited volume will be enough to bring down prices significantly across the region.
