By Jarrett Renshaw
Oct 6 (Reuters) – Democratic lawmakers from northeastern US states urged Energy Secretary Chris Wright to take action to cut soaring heating oil costs they blamed on President Donald Trump’s war with Iran and administration policies, according to a letter seen by Reuters on Tuesday.
Led by Senator Elizabeth Warren of Massachusetts, the lawmakers said in a letter dated Monday that heating oil prices were about 60% higher than before the conflict and that families could pay roughly $600 more to heat their homes this winter.
Heating oil and diesel are fuels produced from the same refining stream, meaning tight supplies and higher diesel prices can also boost heating oil costs.
About one-third of New England homes use heating oil with the share reaching about half in some states.
The letter adds to political pressure on Trump over soaring energy costs ahead of next month’s US midterm elections. Trump on Monday signed an executive order expanding access to tax-exempt red-dyed diesel, allowing anyone to buy the fuel without paying federal highway taxes, regardless of its intended use.
The administration has also pressed European allies to release emergency diesel stocks and threatened a potential US diesel export ban. G7 countries last week agreed to release 100 million barrels of crude and diesel from reserves.
The moves come as diesel prices have climbed above $6 a gallon, with the administration scrambling to boost supplies and lower costs for the fuel integral to agriculture and trucking ahead of the winter.
The lawmakers said the closure of the Strait of Hormuz, low fuel inventories and strong exports have contributed to higher heating oil and diesel prices. They pressed Wright to support an end to the Iran conflict, restore energy assistance and reverse cuts to clean energy and grid upgrades.
“We urge you to support an immediate end to the war and to stop blocking or restricting Department of Energy programs that would help American families lower their energy bills,” the lawmakers wrote.
The issue is landing in two of the Northeast’s most competitive Senate races. Maine Republican Senator Susan Collins is facing a tough reelection fight, while New Hampshire’s open Senate seat is a toss-up between Democrat Chris Pappas and Republican John Sununu, according to nonpartisan election analysts.
Collins and independent Maine US Senator Angus King have urged Trump to tap the Northeast Home Heating Oil Reserve, which holds about 1 million barrels and has not been used since Hurricane Sandy in 2012.
The Department of Energy did not immediately respond to a request for comment.
(Reporting By Jarrett Renshaw; Editing by Timothy Gardner and Bill Berkrot)
Comments