Activist company

Fuel Company warns of ‘historic’ diesel shortage

A fuel supply company is warning of an impending diesel shortage affecting the southeastern United States, in part due to 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 “changing rapidly” and the company is expects several states to suffer the severe effects of the shortage. The announcement comes days after the Energy Information Administration reported that diesel supplies are at their lowest level since 2008, Fox News reports:

The company speculated that the shortage could be caused by “poor pipeline transport economics” and a historically low supply of diesel reserves.

“Poor pipeline transportation economics and historically low diesel inventories are combining to cause shortages in various Southeast markets,” the company said. “These have occurred sporadically, with regions like Tennessee experiencing particularly acute challenges.”

States expected to suffer the severe effects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina. …

“Because conditions are changing rapidly and the market economy is changing significantly every day, Mansfield is moving to Alert Level 4 to deal with market volatility,” Mansfield said in its press release.

The company continued: “Mansfield is also moving the southeast to code red, requesting 72 hours’ notice for deliveries where possible to ensure fuel and freight can be secured at economical levels.”

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