A shortage of diesel in the US has set alarm bells ringing for many experts, who are flagging higher prices for goods and risks to food supply as truckers pay more for fuel.
Inventories of diesel have sunk far below emergency levels, and EIA data showed US had only 25 days’ supply of diesel left in reserves as of three weeks ago — a low not seen since 2008.
The reason? Refiners slowed their refining as the pandemic hit consumer demand, but truck operators kept on buying at high levels as they continued to make deliveries.
Diesel is used in freight transportation, and tight supply could mean less food and other goods getting onto supermarket shelves, and higher delivery costs feeding into higher prices for consumers. That could worsen already high inflation.
Read more at Businessinsider.com