US Diesel Supply Dangerously Low
(WatchDogReport.org) – Since President Joe Biden has taken office, inflation has taken America by storm, and as a part of that, the price of fuel at the pump has skyrocketed. Along with this, the country has faced massive problems in its supply chain brought on, in part, because of a shortage of people wanting to drive trucks for a living. Now, another shortage is looming on the horizon; according to data from the Energy Information Administration (EIA), the United States has only a 25 days supply of diesel fuel available.
Transportation/Industry
According to the EIA website, some distillate fuel oil is more commonly referred to as diesel because it is used to power vehicles that use engines based on a design patented by German engineer Rudolph Diesel. It goes on to say, “most freight and delivery trucks [sic] as well as trains, buses… and farm, construction, and military vehicles…,” and even some passenger cars use it.
Recent inflationary numbers released by the Bureau of Labor Statistics (BLS) indicate how overall prices for all products have increased 8.2% over the last fiscal year, which ended in September. While that is not good, when energy prices are broken out, then it borders on catastrophic.
Over the same one-year range, fuel oil prices (which exclude gasoline) increased by 58.1%. Put another way, for every $100 spent on the product bought in 2021, a person will have to shell out $158.10 for the same amount now.
With already-troubled supply lines, a shortage in the amount of distillate fuel oils on hand could have a devastating impact on the economy. Because, regardless of the number of trucks and trains available, without fuel for their engines, they smash into a “hard capacity constraint,” according to Reuters analyst John Kemp.
The Weather Outside…
Diesel fuel is not the only distillate that Americans rely on. A similar product is also facing shortages at the worst possible time. Home fuel oil people use to keep their boilers and furnaces running, especially in the northeastern part of the country, is also dwindling.
There’s no stead and fast rule for how much heating oil a particular house might use over the fall through spring months. Factors such as lifestyle, energy efficiency, and temperature can have a great impact. Experts have estimated in the northeast, as an example, it will average about 5 gallons per day.
According to EIA data on the cost of heating oil in New England, the cost was $5.703 a gallon on October 17 (an increase of $1.13 + from October 3). When one does the math, the average homeowner in that region of the country will be shelling out a bit more than $28.50 every day to keep themselves warm — and that’s at the current price.
But, what exactly does this mean to somebody’s bank account? At the beginning of last season on October 11, 2021, the cost per gallon was $3.198, or $15.99 per day. Regarding another of life’s necessities, food, Americans paid 13% more at home this September compared to last year, per BLS statistics.
Netflix is not a need. The most recent video game is not a need. They are luxuries that are nice to have. But given the rampant increase in costs of things that are needed, the Biden Administration’s failure to get inflation under control could mean people are going to need every penny they can get just to survive the winter.
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