Nationwide diesel shortage, how it will impact Michiana residents
SOUTH BEND, Ind. --- The U.S. is facing a nationwide diesel shortage due to many factors including refinery outages, long-lasting effects of Covid, and the war between Russia and Ukraine. However, the daunting statistic being spread that the U.S. only has enough supply of diesel to last 25 days does not mean trucks will be on empty in 25 days.
“It does not mean we’re running out of diesel in 25 days, it simply means things are tight and it’s been very difficult for refineries to keep up with demand,” says Head of Petroleum Analysis at GasBuddy, Patrick De Haan.
The high prices for diesel are adding to already-high inflation rates that were just starting to go down.
“This new problem we have with diesel prices going up is going to slow down the decrease in prices we’re seeing with goods and commodities, at least some,” says Kladji Bregu, Assistant Professor of Economics at Indiana University South Bend. “Overall, of course, prices still remain very high, and we still prefer to see a continuous and a faster decrease in prices.”
Even though you may not be filling up your tank with diesel, the shortage will heavily impact shipping costs with most transportation using diesel, and it’s a cost that nearly everyone will pay for.
“Just because you fill up with gasoline doesn’t mean the high price of diesel doesn’t affect you,” De Haan says.
“Higher diesel prices will lead to higher shipping costs, which eventually will be transferred into the goods and services that we buy,” Bregu explains. “So, there’s no escape from this for all of us, of course some of us will be affected more than others but we will all feel the effect of higher diesel prices.”
As far as diesel fuel supply in South Bend, we should not expect to run out anytime soon.
“We are well-supplied generally speaking in the Great Lakes, especially in South Bend, you’re only a stone’s throw from the refinery in Northwest Indiana,” says De Haan. “I would not expect supply to be constrained in an area like South bend.”