Josh Yoder, owner of Yoder Farms, says he spends $1,500 a day on a single tractor amid skyrocketing diesel costs.
Fuel supplier Mansfield Energy is taking steps to prepare for diesel shortages on the U.S. East Coast, issuing advisories to businesses relying on fuel for planning, not panic.
Last week, Mansfield Energy warned of an upcoming diesel fuel shortage in the southeastern U.S. region, speculating it could be due to a “weak pipeline shipping economy” and historically low supply of reserves. Did.
NEW JERSEY, USA – MAY 11: Aerial view of the Phillips 66 Refinery in Linden, New Jersey, USA on May 11, 2022. () (Photo by Tayfun Coskun/Anadolu Agency via Getty Images/Getty Images)
There are typically 50 million barrels of stock in the East Coast market, but less than 25 million barrels are currently available.
In a press release on Monday, the company said, “If diesel supplies become tight, prices will rise, ultimately making it too expensive for some people.” “When prices go up, demand drops enough to balance out the limited supply.”
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Mansfield warned that at the level of the U.S. economy, consumers may struggle with fuel supplies, but supplies are still possible for businesses that rely on diesel for their operations.
“That’s not to say there aren’t occasional situations where the product is actually physically scarce,” the company said. Yes, but the fuel supply chain is dynamic and suppliers are rallying to fill the supply gap.”
File photo: Storage tanks are seen at Marathon Petroleum’s Los Angeles refinery. Carson, California imported crude oil to the California Air Resources Board (CARB), gasoline, diesel fuel, and other petroleum products. (Photo by REUTERS/Bing Guan/Reuters)
To prepare for shortages, Mansfield advised bulk fuel buyers not to panic and order fuel when they weren’t sure if it would fit in the tank. The company said the fuel should be available through normal means in “most regions.”
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For businesses that do not have large on-site storage tanks and instead rely on refueling elsewhere, the fleet may be out of service because the fuel supplier runs out of fuel.
Mansfield said businesses could reduce the risk of being out of business by issuing emergency fleet cards that give access to fuel in a traceable manner or by considering installing small tanks for emergency fuel. .
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“Retail consumers shouldn’t expect extensive fuel stations with bags over the pumps,” the company said. (you’ll hear it in the news), but generally retailers find supply and keep it running. The higher prices are simply passed on to the consumer.
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