America Is Experiencing A Diesel Shortage; “Unacceptably Low”
A restriction on Russian imports is causing US diesel shortages to expand along the East Coast, increasing concerns about additional increases in fuel costs as consumers get ready for the winter heating season.
One of the largest gasoline distributors in the country, Mansfield Energy, took emergency steps on Tuesday and informed its clients that transporters were sometimes had to visit numerous terminals in search of supplies, which was delaying delivery. The firm recommended consumers to offer 72 hours' notice for orders in order to avoid paying above-market costs as shortages moved from the Northeast to the Southeast.
According to Mansfield, which supplies more than three billion gallons of oil products a year, "real gasoline prices are presently 30-80 cents higher than the quoted market average since supply is constrained." As the comparatively cheap suppliers of diesel run out, distributors are compelled to purchase it from more expensive sources, which leads to exceptionally broad price gaps.
Just six days before to Mansfield's warning, Brian Deese, head of the US National Economic Council, told Bloomberg News that the availability of diesel was "unacceptably low" and that President Joe Biden's administration had "all options" open to lower costs. However, it's unclear how such solutions would offer long-term relief, as Bloomberg and other media sources have pointed out.
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