Why The U.S. Has A Diesel Shortage
Distillate inventories are at their lowest since 2008, according to the EIA (the Energy Information Administration ).
However, in 2008 distillate levels were low coming out of the spring. Currently, they are low going into the fall, which is significantly worse than the situation in 2008.
Low distillate inventory means diesel prices above $5 per gallon, even though the nationwide average for gasoline is below $4.
This is when refineries do maintenance, and this spring and fall are good seasons because demand is low during this time. Maintenance reduces their efficiency.
US refinery capacity has plummeted over the years as many unprofitable refineries closed. That's why diesel may be expensive in America.
The United States' dependence on diesel imports from Russia has been cut significantly.
Before Russia's invasion of Ukraine, the US was importing an average of 700,000 barrels per day (bpd) of petroleum and petroleum products.