The nation’s supply of diesel fuel has been in the news recently after the U.S. Energy Information Administration reported that the U.S. had a 25.9-day supply of diesel fuel as of October 21. “That doesn’t mean in 25 days, we’re not going to have any diesel,” says Crete Carrier President and COO Tim Aschoff. “It means that’s how much excess inventory we have right now, when you look at how much diesel is produced every day and how much is used every day.”
The supply of diesel fuel has declined due to refinery shutdowns for maintenance, an overall reduction in refinery capacity, and the cutoff of Russian oil imports. Demand for heating oil, particularly in the northeast, also grows at this time of year. Heating oil is similar to diesel fuel. “A lot of the refineries change from making diesel fuel to heating oil for a while. They build up those inventories, then they balance it out throughout the winter,” says Aschoff.
The good thing is that diesel fuel is continuing to be produced.
“So don’t panic. We’re going to be okay. There’s still a lot of diesel fuel in the United States and there’s still a lot being made every day.”
But as temporary reductions in supply, and increases in demand, drive diesel prices higher, Aschoff says it’s still important for Crete Carrier, Shaffer Trucking and Hunt Transportation drivers to follow fuel solutions to manage fuel costs.
You can view Aschoff’s full comments on the diesel supply situation in his Weekly Video for November 3, 2022.
The price of highway diesel has risen substantially in 2022, in large part due to steady demand paired with a diminished supply.