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Fuel Company Warns of ‘Historic’ Diesel Shortage

A Georgia gas station sign / Getty Images
• October 31, 2022 2:10 pm

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A fuel supply company is warning of an impending diesel shortage impacting the southeastern United States, due in part to the low supply of diesel reserves.

Mansfield Energy, which delivers more than three billion gallons of fuel annually in North America, said in a memo on Friday that conditions in the diesel supply market are "rapidly devolving" and that the company expects several states to experience serious effects from the shortage. The announcement comes days after the Energy Information Administration reported that diesel reserves are at their lowest level since 2008, Fox News reports:

The company speculated that the shortage could be generated from "poor pipeline shipping economies" and a historically low supply of diesel reserves.

"Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast," the company said. "These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges."

States that are expected to experience serious effects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina. …

"Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility," Mansfield's press statement said.

The company continued, "Mansfield is also moving the Southeast to Code Red, requesting 72-hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels."

Record-high fuel prices have given the Biden administration headaches ahead of next week's midterm elections. The White House reportedly threatened to take executive action against oil companies if they fail to lower prices for consumers.