WEST TEXAS - An acute shortage of diesel fuel in the U.S. is threatening to keep inflation and heating bills high in the country through the winter, as prices are expected to continue surging. New government data released on Wednesday show that diesel supplies around the country are 'unacceptably low.' According to the Energy Information Administration, the U.S. has now 25 days left of diesel supply, its lowest level since 2008. All options are on the table to replenish U.S. supplies, which have been drained by the impact the Russian invasion of Ukraine has had on global energy supplies and imports. The price of diesel in the U.S. has been surging 'due to inventories at very low levels and limited ability to quickly improve supply.' Imports from Russia have been banned following the Russian invasion of Ukraine on February 24, contributing to the current supply crunch in which refineries' seasonal maintenance also played a big part.
While supplies of diesel started dwindling in the U.S., demand is currently at its highest point in two years. And as winter approaches, demand for diesel to heat homes is about to rise, likely causing an increase in prices.
Industry experts conclude the immediate consequences of this shortage will be higher prices. At the moment, according to AAA data, diesel prices are some 50 percent higher than they were this time of the year in 2021, at $5.324 a gallon.
Local business owners have a different perspective, however, as they are currently able to maintain full tanks and meet the demand of an estimated 32,000 gallons of diesel daily.
“We are not experiencing any shortages and we are still getting our contracted amount of diesel,” stated Franklin and Son owner Reggie Franklin. “We are getting a lot of phones calls from customers worried about running out but for now that is now an issue.” While prices surge around the country, prices around Martin County have only fluctuated slightly from $4.79 to $5.09. It wasn’t many months ago when national media was getting the country worked up over the shortage of DEF, and additive to diesel fluid used to reduce the production of nitrogen oxides. This shortage was going to cause massive supply chain issues that could cripple the United State economy. But that impact was minimal at best and is now nothing more than a distant memory. The current diesel shortage will see some relief in the coming days and weeks as some refiners are coming back online from seasonal maintenance. Also, the U.S. is set to receive at least two ships carrying a total of some 90,000 metric tons of diesel and jet fuel that have been diverted from their original destinations in Europe to the East Coast, as reported on Oct. 14. The diesel is arriving from the United Arab Emirates.