DOE: Sandy created 'severe energy supply interruption'

“Today’s announcement is part of the broader federal effort to respond to those impacted by Hurricane Sandy,” Energy Secretary Steven Chu said in a statement. “This loan from the Northeast Home Heating Oil Reserve will help ensure state, local and federal responders in the impacted area have access to the diesel fuel they need to continue response and recovery efforts.”

Power outages in New Jersey and New York have trapped fuel at shipping terminals, creating a supply shortage, The Hill reported Thursday. As a result, many gas stations have run out of fuel.

The Defense Department, which will deliver the fuel, said it would replenish the home heating reserve within 30 days.