Diesel supply in the U.S. is at its lowest point since 2008 while demand for the fuel has spiked to the highest rate since 2007.
- Reports from Bloomberg find that there is only a 25-day supply of diesel fuel left.
- The Biden administration has addressed the issue, saying the supply is at an “unacceptably low” point.
- The price of diesel has increased approximately $1.67 since last year reaching an average price of $5.34.
- New Englanders are most affected by the shortage as a majority use diesel to heat their homes. California, however, is experiencing the highest prices at $6.50 a gallon.
Why it’s news
Diesel is an important fuel both for heating, trucking, and farming. A shortage of fuel for semi trucks could lead to another major supply chain disruption, and a fuel shortage in the middle of harvest season could be bad news for farmers.
This shortage, along with the high prices of fuel, is a concern for the Biden administration as midterms quickly approach.
Rising prices on diesel are partly due to low supply caused by the war between Russia and Ukraine. As diesel refineries close due to seasonal maintenance, this shortage is more obvious.
Nearly one million barrels of diesel fuel have been redirected from Europe to New York, potentially postponing any disaster. A Pennsylvania diesel refinery is in the process of coming back on line after closing due to seasonal maintenance. Once back in operation, the refinery will be able to alleviate some of the strain.