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Monday, October 31, 2022

Diesel Shortages Loom

Watching the supply chain: 

US diesel supplier warns companies to prepare for shortages, higher prices for consumers

Alexandra RossOctober 31, 2022  in LocalToday.News

Josh Yoder, owner of Yoder Farms, says he spends $1,500 a day on a tractor while diesel costs are skyrocketing.

Fuel supplier Mansfield Energy is taking steps to prepare for a diesel shortage on the East Coast of the United States and is issuing an advisory to companies relying on the fuel to plan rather than panic.

Last week, Mansfield Energy hoisted a red flag on the impending diesel fuel shortage in the US southeastern region, speculating that it could be due to “weak pipeline ship economies” and historically low reserve supply.

NEW JERSEY, USA – MAY 11: An aerial view of the Phillips 66 Oil Refinery is seen on May 11, 2022 in Linden, New Jersey, United States. () (Photo by Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)

On a normal day, East Coast markets stockpiled 50 million barrels, but less than 25 million barrels are available right now.

Also read: US diesel supplier warns companies to prepare for shortages, higher prices for consumers

“A tight supply of diesel will drive up prices, which will eventually make it too expensive for some people,” the company said in a press release on Monday. “High prices will lower demand enough to balance it with limited supply.”


Mansfield warned consumers may feel pain at the pump in the US economy, but supply will still be available for businesses that rely on diesel to operate.

“That’s not to say there won’t be occasional situations where there’s a real physical shortage of product,” the company said. “Some cities could get by on diesel for a few days, at least at the terminal level. But the fuel supply chain is dynamic and suppliers will join forces to fill supply gaps.” ... ' 

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