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Diesel Shortage Leaves US With Just 25-Day Supply as Demand Surges: Report

The Drive
The Drive
 2022-10-23
https://img.particlenews.com/image.php?url=03z14x_0ijkOtNL00 Photo | Getty Images.

Diesel stockpiles in the U.S. are reportedly at their lowest point since 2008, with only enough fuel for a 25-day supply, according to a recent report from Bloomberg . Demand is also said to be at its highest point since 2007, creating a dangerous supply/demand combination that’s causing spikes in pricing. The Biden administration called the nationwide diesel supply “unacceptably low” and is looking at all options to build up the national supply to help reduce prices.

According to U.S. Energy Information Administration (EIA), the average price of diesel is at $5.34 per gallon. That’s an increase of $1.67 per gallon, compared to this time last year. The area getting hit the hardest is New England, where people burn diesel fuel for heat more than anywhere else in the country. There, stockpiles of diesel fuel are a third of what they normally are at this time of the year. However, the highest cost of diesel fuel is in California, where the average cost is almost $6.50 per gallon, an increase of almost $2.00 per gallon over this time last year.

https://img.particlenews.com/image.php?url=4P8Fs7_0ijkOtNL00
Photo | Getty Images

It’s also a massive price increase over the average cost of gasoline in the U.S. According to the EIA, the average price of gasoline in the U.S. is $3.87 per gallon, with the most expensive region also being California, at $5.84 per gallon.

Part of the reason for the diesel supply shortage is maintenance season but the bigger issue is Russia’s war in Ukraine, which has hurt global fuel supplies. Thankfully, according to Bloomberg, there may be some good news on the horizon. One million barrels of diesel fuel is said to be headed to New York, after two shipping vessels were diverted from their original European destinations. At the same time, a Trainer, Pennsylvania-based diesel refinery is coming back online after its seasonal maintenance, which will help increase diesel production in the U.S. Hopefully those two things can help return the diesel stockpile to normal-ish levels, at least temporarily.

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Comments / 1539

Paulb
10-23

Oil is the next largest commodity next to water. No reason to have a shortage unless you have a government restriction to promote EV.

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Missouri Fire
10-23

We didn't have shortage until Biden took over. I was paying $1.85 a gallon. Today I paid $4.98. The cost to transport food and commodities has skyrocketed. Vote Republican on November 8th and end this stupidity.

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ISNT2L8
10-23

Obama is running the show and he is crippling our country. We are already at war and the enemy is on our soil. If WE THE PEOPLE don't VOTE RED then we can say goodbye to the country we once loved. VOTE RED AND YOU WON'T HAVE THE BLUES!

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