Diesel Prices Are Going Up Really Fast

[Scooterfan]

We are all going through the same thing...and thanks for the truth about high fuel prices at the pump. With that said, many (most) of us will have fuel in our tanks longer than in the past. Having owned boats all my life I'm familiar with "old" fuel. This post is simply a reminder to "treat" your fuel with a stabilizer if allowed to sit in the tanks for any length of time. There are many different types for either gas or diesel...but choose one and use it. IMHO

 

[Rich W.]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

my question is whether the aft mast is abaft the rudderpost?

 

[sanda]

Looked into it, I was correct and no gas taxes have been abated. The "ruling party" passed a law a few years ago to automatically increase the gas tax tied to inflation every year so they wouldn't have to make any more unpopular votes on increasing it.
This budget simply eliminates this year's increase. All the existing fuel taxes remain the same.

Yet this administration is promoting it as a tax cut and ordering the notice of "suspended fuel tax" to be put on every pump, or the station owner faces fines, in an election year.
Several lawsuits filed over this.

Only in IL could they simply not increase taxes and then advertise it as a tax cut.

It isnt only in Il. Many governments from local to national play the same games.

 

[Dona40]

my question is whether the aft mast is abaft the rudderpost?

It's a work in progress...

 

[AbdRahim]

It isnt only in Il. Many governments from local to national play the same games.

It is called propaganda. We are supposed to drink the Koolaid and be happy.

 

[sheridany]

In the WSJ tonight.

One of the US’s largest truck stops, Love’s, said Wednesday it is closely watching its diesel fuel supplies in the Northeast amid growing concerns of industry-wide shortages, but said it has no plans to limit purchases.

“Love’s is monitoring the fluid situation on the East Coast, we have experienced minimal outages during low traffic hours,” Oklahoma-based Love’s Travel Stops said in an emailed statement. “The company has no plans to restrict purchases of diesel.”

Inventories of diesel fuel, which in the US is mostly used by truckers, have been on the decline since the pandemic began, but those declines have accelerated since the start of this year. Analysts attribute the declines to reduced refining capacity, robust demand for the trucker fuel during the pandemic, and a recent rise in diesel exports.

Earlier on Wednesday, the US government’s Energy Information Administration said total inventories of distillates, which is mainly diesel fuel but also heating oil, fell last week to a 17-year low of 104 million barrels, which is 23% below normal.

On the East Coast, the situation is even worse. The EIA said distillate fuel oil inventories in the so-called PADD 1 district that covers the Northeastern states fell by 1.1 million barrels last week to just 21 million barrels, the lowest ever recorded in data going back to 1990.

Love’s truck stops, with some 550 locations across 41 states, also seemed to confirm reports on social media Wednesday that said Love’s and other truck stops such as Pilot were informing their fleet operators that shortages of diesel fuel on the East Coast may happen in the coming week at some stores.

“The Love’s Fleet Sales Team proactively alerted the company’s fleet customer base to maintain their consistent, straight forward approach to evolving market fluctuations,” it said in response to the social media posts. “Love’s is committed to keeping our customers well-informed of market developments ahead of the trends to help mitigate impact to their business.”

Representatives from Pilot truck stops weren’t immediately available for comment.

The falling inventories of diesel could cause prices for the fuel to keep eclipsing record highs. AAA said the average price for a gallon of diesel fuel in the US hit another all-time high on Wednesday, at $5.55 compared to $3.13 a year ago. Gasoline prices also hit an all-time high Wednesday, at $4.40 a gallon versus $2.99 a year ago.

Another reason for the drop in US diesel fuel inventories is that exports of the fuel have risen sharply in recent months despite the low stockpiles. For the week ending April 8, US distillates exports hit a four-year high of 1.7 million barrels a day, according to the EIA.

Some analysts have speculated that the rising exports are being sent to Europe following Russia’s invasion of Ukraine.

But Matt Smith, lead oil analyst at commodity tanker-tracking firm Kpler, said that doesn’t appear to be the case.

“The drop in distillate inventories is because of lower refining over the pandemic (due to lower gasoline demand) while distillate demand held up much better (given trucking of goods, Amazon, online shopping, etc),” Mr. Smith said. “Middle distillate exports are also playing a small part, returning to pre-pandemic levels — but that’s not a pull to Europe, it’s to LatAm, their leading destination.”

US refinery runs now are at 15.7 million barrels a day compared to the 2015-19 average of 16.4 million, Mr. Smith said. “Refiners have just not been producing as much and have not rebounded to pre-pandemic levels.”

 

[AbdRahim]

And this too shall pass. Hopefully!

 

[JRS]

Read an article today written by an Economist who's familiar with following the diesel market. Supplies are tight and he wouldn't be surprised if it hits $10/gallon by end of summer. Ouch! IMHO, our economy will tank at those prices.

 

[Jim]

IMHO, our economy will tank at those prices.

Not to be the bearer of gloom and doom, but if current trends continue, I don't see anyway around it.

I sold my MH because prices were high, thinking I would buy a newer/better one when the demand returned to normal. I expect that glut to come sooner than later now. Problem is, doubt I'll be wanting one when that time comes.

No fun having a MH that I can't afford to go drive anywhere.

 

[skychs]

Not to be the bearer of gloom and doom, but if current trends continue, I don't see anyway around it.

I sold my MH because prices were high, thinking I would buy a newer/better one when the demand returned to normal. I expect that glut to come sooner than later now. Problem is, doubt I'll be wanting one when that time comes.

No fun having a MH that I can't afford to go drive anywhere.

We did the same thing. I cant imagine the difference in cost if I took the same trip this year that we took last year. (VA to Montana and back) We miss our MH but we are following the new owners on their current adventure out to Yellowstone and back.