(Photo: Jim / )
“I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” Catsimatidis told Bloomberg’s Lucia Kassai. “Right now inventories are low, and we may see a shortage in coming months.”
Carriers and owner-operators — especially those with already-slim margins — are struggling to keep up with rising diesel prices.
Catsimatidis said he doesn’t expect the 350 stations United Refining operates to be low on gasoline; it will just be very expensive. “Drivers will pay the highest gasoline prices ever paid for Memorial Day.”
Several truck stop chains and fuel providers have commented on the possibility of rationing. Pilot Flying J is aware of tight diesel markets, especially in Virginia and Georgia, and is “closely monitoring the situation,” the company told .
The U.S. has increased diesel exports to help supply Europe with previously Russian-supplied fuel. But higher prices of diesel on the East Coast may impact how much diesel companies send to Europe, where prices are slightly lower, ’ John Kingston reported.
On Monday, the General Index price for ultra low sulfur diesel was about $3.90 per gallon in Rotterdam, Netherlands, and $4.30 a gallon on the East Coast of the U.S.
“Limited spare capacity in the global refining system, together with reduced exports of Russian fuel oil, diesel and naphtha have aggravated the tightness in product markets, which have now seen seven consecutive quarters of stock draws,” the report said.
