XENIA, Ohio (WDTN) — The U.S. is experiencing a diesel shortage which has local trucking companies worried about the future.
Tom Milby is the Vice President of Safety at Home Run, Inc., a trucking company based in Xenia. The company has been around for decades, surviving the many ups and downs of the U.S. economy, including the rising cost of diesel fuel. Now, there is new challenge.
“Now, with the diesel shortage, everybody’s talking about the diesel shortage. We’re really panicking. I mean, we’re really concerned, is there going to be diesel next month or the next couple of weeks?” Milby said.
According to a recent report from the Energy Information Administration, the U.S. has 25 days worth of diesel supply left. That number is alarming to businesses like Milby’s where diesel is crucial to every day operations.
“Trucking companies supply the world. So, I mean, grocery stores, you name it. If trucks don’t have diesel, you’re not going to have your products for your stores,” Milby explained.
Experts say there is no need to worry though, refineries are continuing to produce diesel every day and we could see that impact prices the store. Why is supply so low? There are a few reasons.
Refineries are still operating at lower capacities because of the COVID-19 pandemic, while demand remains high. That increased demand is being fueled event further by a drought on the Mississippi River which is pushing more goods to rail and truck. Europe’s ban on Russian oil will also take effect early next year, which is only increasing competition for oil.
While all eyes remain on U.S. diesel levels, Milby hopers they will not feel too much an impact.
“As of right now, our supplier said they’re in a good position, but they said, you know, when you go to a truck stop, you may have to wait a half hour to an hour. But for now, they’re in a good position,” Milby said.