US diesel supplier warns companies to prepare for shortages, higher prices for consumers
fuel supplier Mansfield Energy takes steps to prepare for a diesel shortage on the East Coast of the United States and issues advice to companies that rely on fuel to plan rather than panic.
Last week, Mansfield Energy hoisted a red flag on the impending diesel fuel shortage in the US southeastern region, speculating that it could be due to “weak pipeline ship economies” and historically low reserve supply.
On a normal day, East Coast markets stockpiled 50 million barrels, but less than 25 million barrels are available right now.
“A tight diesel supply will force prices to risewhich will eventually make it too expensive for some people,” the company said in a press release Monday. “High prices will lower demand enough to balance it with limited supply.”
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Mansfield warned against this US economy Consumers may feel an ache at the pump, but supply will still be available for businesses that rely on diesel to operate.
“That’s not to say there won’t be occasional situations where there’s a real physical shortage of product,” the company said. “Some cities could get by on diesel for a few days, at least at the terminal level. But the fuel supply chain is dynamic and suppliers will join forces to fill supply gaps.”
In preparation for the shortage, Mansfield advised bulk consumer buyers not to panic and order fuel if they don’t know whether it will fit in the tanks or not. Fuel should be available by normal means in “most areas,” the company said.
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For companies that do not have a large on-site storage tank and instead rely on off-site refueling, the fleet could be out of service if the fuel supplier runs out of fuel.
Mansfield said businesses can reduce the risk of being out of service by issuing emergency fleet cards that provide access to fuel in a traceable manner, or by considering installing a small tank for emergency fuel.
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“Retail consumers shouldn’t expect to see widespread gas stations with bags over the pumps,” the company said. “It can happen on rare occasions (and when it does, I’m sure you’ll hear it on the news), but generally retail stations will find supply and stay up and running. Higher prices are simply passed on to consumers.”
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