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Federal government makes 3 key moves to bring fuel to Nj/NY

fueltruck_optThe U.S. government has responded to the fuel crunch plaguing the metropolitan area by making three key moves on Friday.

1) The Obama administration said it has directed the Defense Logistics Agency to purchase up to 12 million gallons of unleaded gasoline and 10 million gallons of diesel for distribution to storm-stricken areas. This purchase will be delivered by tanker trucks, FEMA said in a statement.

2) Provide emergency responders with diesel from national reserves

3) Allow foreign tankers in the Gulf of Mexico to bring fuel to the region.

Reuters reported that The Department of Homeland Security waived the Jones Act, a law that normally prohibits foreign-flagged vessels from shipping gasoline, diesel and other petroleum products, from the Gulf of Mexico to Northeastern ports. The waiver, effective immediately, requires shipments to leave the Gulf region by November 13 and arrive in the Northeast within a week.

The Energy Department also announced that it was tapping the Northeast Heating Reserve for the first time, releasing about 48,000 barrels of ultra-low sulfur diesel for the Defense Department to distribute to local and federal responders in New York and New Jersey.

In another move to ease the shortages, according to Reuters, the Obama administration also directed the Defense Logistics Agency to purchase up to 12 million gallons of unleaded gasoline and 10 million gallons of diesel for distribution to storm-stricken areas. This purchase will be delivered by tanker trucks, FEMA said in a statement.

 

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