Despite falling gasoline prices, families could face higher heating bills and prices for everyday goods as diesel and heating-oil supplies shrank to their lowest levels in years heading into winter.

Here's what to know

According to 24/7 Wall St., United States reserves of heating oil and diesel have reached historic lows just as the winter heating season was set to begin across the nation. Refineries in the U.S. are running at 94.5% capacity. 

U.S. distillate inventories were 13% below their five-year seasonal average and at their lowest level since May 2003, with supplies totaling 99.3 million barrels in the week ended Oct. 30 after a 3.6 million-barrel decline.

As gasoline prices have cooled in recent weeks after months of sharp increases, distillate prices continued to rise. The national average price for regular gasoline fell to $4.15 per gallon after a 7% monthly decline, while four-week average distillate demand ran 8.7% above its year-earlier level, 24/7 Wall St. reported. 

Rising prices have coincided with shrinking reserves, with distillate inventories down roughly 33.7 million barrels, or 25%, since January. 24/7 Wall St. linked the shortage to the Iran war and the risks facing tankers navigating the Strait of Hormuz.

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Why the price of diesel matters

While households receive some relief at the gas pump, diesel prices affect nearly every product a consumer can buy. Diesel-powered trucks, trains, tractors, and construction equipment move groceries, retail goods, and home deliveries. Trucking companies' fuel surcharges can reach shoppers indirectly, as shippers and stores pass those costs along to consumers. 

Despite economic headwinds from high fuel costs and rising prices for everyday goods, sales grew 0.8% to $745 billion in September, according to 24/7 Wall St. The Consumer Price Index rose 0.6% that month, reaching its highest level in a year.

Dwindling strategic reserves 

With some of the nation's strategic reserves at their lowest levels in years, the government has little room left to maneuver. In March, the current administration approved a 172 million-barrel withdrawal from the Strategic Petroleum Reserve as part of an international effort to release a combined 400 million barrels among International Energy Agency member nations, according to 24/7 Wall St. 

Congress has set a 252.4 million-barrel minimum for the nation's petroleum reserve, though presidents can draw it below that level during emergencies. The reserve's holdings have fallen as low as 282.2 million barrels, the lowest level since October 1982, with one source saying that levels have fallen 32% since March, per 24/7 Wall St. 

For households seeking greater energy independence and cost savings, EasyHome also offers options to explore battery storage. Pairing solar with batteries can help manage electricity costs by storing electricity for later use and potentially supplying backup power during outages, depending on system size and configuration.

Where can I learn more?

Shrinking diesel and heating-oil supplies have been squeezing household budgets and fueling debates over how to respond. These stories cover refinery concerns, fuel releases, export restrictions, and other fuel-related concerns. 

• In Texas, experts warned Trump's diesel export ban could cut supplies and hurt refineries.

• The G-7 approved a 100 million-barrel release as U.S. diesel reached $6.37.

• In Iowa, diesel reached $6.57 as Chuck Grassley urged Trump to halt diesel exports.

• U.S. diesel hit a record $5.98 as Iran war pressures raised everyday goods costs.

• U.S. inflation reached 3.7% as surging heating oil prices raised concerns ahead of winter.

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