America Faces Diesel Shortage, Prices Expected To Increase. Here’s Why

diesel shortage

In the event that nothing changes, prices for fuel in the United States will probably increase.

Only around 25 days’ worth of diesel is now on hand in the United States, according to data from the U.S. Energy Information Administration. This level has not been reached since 2008.

Not only is diesel used to power semi-trucks and trains, but it is also utilized to heat homes. A small supply could have a significant financial impact on consumers.

The United States prohibition on Russian imports, low refining capacity owing to seasonal labor, and strong demand are all contributing factors to the scarcity.

The lack of diesel may also result in a shortage of heating oil and higher costs.

With ships transporting 1 million barrels of diesel from Europe to the east coast of the United States, there will be some relief; however, experts predict that stabilizing then rebuilding inventories will necessitate a significant slowdown in freight movements and manufacturing activity, which will result in a slowdown in the economy.

According to the US Energy Information Agency, every possible solution will be looked into.

Soyiga Samuel: Samuel is a public relations expert & an advocate for green earth & hands on the farm.