- Fuel Company Issues Diesel Shortage Warning, Says US ‘Rapidly Devolving’
by Jack Phillips, https://www.theepochtimes.com/
A major fuel supply company has issued an alert about diesel fuel shortages in several Southeastern U.S. states. States that are expected to experience shortages include Alabama, Georgia, Tennessee, North Carolina, Virginia, and South Carolina, Mansfield Energy said in an alert last week. The company also noted “extremely high prices in the Northeast.”
“Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” the company said. “These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.”
It noted that fuel prices are 30 to 80 cents higher than the posted market average due to “tight” supply, while saying that “fuel suppliers have to pull from higher cost options, at a time when low-high spreads are much wider than normal.”
Fuel carriers are now having to go to “multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” it said. Due to “rapidly devolving” conditions, the firm issued its “Alert Level 4” to address the volatility, according to the statement. For the southeastern United States, Mansfield said it is issuing a “Code Red” alert and is “requesting 72-hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels.”
Diesel enables most of the shipping across the United States and is used by long-haul trucks and freight trains. While gasoline prices have dropped since they posted record highs in June, diesel hasn’t decreased nearly as much and currently stands at $5.31 per gallon, according to AAA.