East Coast gasoline pinch worsens with inventories at eight-year low

Gasoline supplies on the US East Coast tumbled to an eight-year low, exacerbating a fuel shortage among wholesalers that threatens to further drive up pump prices heading into the midterm election. 

Overall US stockpiles are now the tightest since November 2014. That’s hitting pump prices, with East Coast states seeing some of the biggest jumps while, nationwide, prices have halted their streak of declines and started to rise again. The national average stood at $3.765 a gallon Wednesday, the highest level recorded for this time of year, according to AAA. 

High pump prices have become a political pain point for Democrats, with the election less than a week away. While the Biden administration has ramped up pressure on oil companies to lower gasoline costs, fuel shortages are pressuring prices. Some of the highest prices have been in swing states that could determine which party controls Congress. 

The drop in gasoline supplies occurred even as demand dipped for the week. It was driven by imports plunging to the lowest since April 2020.

The scarcity extends to diesel, the fuel that powers the US economy. National supplies of the heating and trucking fuel have remained flat heading into winter, even as demand rises. That could mean higher prices across the country in the coming weeks. The good news is that diesel supplies jumped by 1.4 million barrels on the East Coast -- where the shortage was most acute -- as more supplies flowed in by pipeline and sea.