Anybody hear about the Diesel fuel shortage coming? [LOCKED AND WARNINGS GIVEN DUE TO POLITICS]

[Gunrunner72]

Another factor that I don't believe has been mentioned is that the Mississippi River is incredibly low, making it difficult to transport full barges to their destination. Supply is already VERY tight and now it's taking more trips to get the same quantity to fuel terminals.

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[Lunentucker]

... seeing profit reports HIGHER than projected makes it easier to believe that companies are taking advantage of the situation.

See Home Depot, Lowes, Amazon, Pfizer, and every single car dealership in America for the last two years.
Capitalism is taking advantage of situations.
Oil is not a regulated utility.
We can argue as to whether or not it should be, but it isn't for now.

 

[Wheelin98TJ]

See Home Depot, Lowes, Amazon, Pfizer, and every single car dealership in America for the last two years.
Capitalism is taking advantage of situations.
Oil is not a regulated utility.
We can argue as to whether or not it should be, but it isn't for now.

Fuel retailers are doing well too.

We have probably all heard they only make pennies per gallon, but that is not true.

Diesel has a bigger margin than gas. Sometimes $0.50/gal or more on the retail price for a non-commercial consumer.

 

[Ronald]

Ive been following the fiasco thats coming for a while. No good at all. I actually saw diesel $2.50 MORE than 87oct. Which is never a good sign

Our government and the people that control them are going to make fossil fuels more expensive and more difficult to get until they get us to buy in to electric vehicles. At that point in time driving for pleasure and driving something you actually want to drive will be gone and we will all be just doing the essentials of getting ourselves and families from point A to point B. Very sad.

 

[CrazyCooter]

Is heating oil the same as red diesel?
No, heating oil is not the same as red diesel (off-road fuel). Though both are tax exempt and dyed red, they each have different sulfur contents. Heating oil has 500ppm of sulfur while red diesel has less than 15ppm. Note that red diesel can be a substitute for heating oil, but heating oil cannot substitute red diesel because of its high sulfur content which is bad for the environment.

Now that's funny or not so............The sulphur ends up in the air regardless of how it's burned?

 

[CrazyCooter]

Another factor that I don't believe has been mentioned is that the Mississippi River is incredibly low, making it difficult to transport full barges to their destination. Supply is already VERY tight and now it's taking more trips to get the same quantity to fuel terminals.

"The preacher man says it's the end of time
And the Mississippi River, she's a-goin' dry
The interest is up and the stock market's down
And you only get mugged if you go downtown"

So this has happened before and the sky is not falling? ?

 

[Lunentucker]

Fuel retailers are doing well too.

We have probably all heard they only make pennies per gallon, but that is not true.

Diesel has a bigger margin than gas. Sometimes $0.50/gal or more on the retail price for a non-commercial consumer.

Stations next to other stations.
Stations across the road from stations.
Anyone who wants to sell more can easily lower their rates, if they're not consignment sellers.
My little town had three stations, until a fellow along a few months back and re-opened one that had closed a few years back.
Suddenly we had a station that was selling 87 for 20 cents less than everyone else.
I talked to the owner one day while I was filling up.
He's not a consignment retailer. He buys on the wholesale market and pays on delivery, then he marks the product to what he thinks is good enough for him to cover his overhead and make a decent profit.

It didn't take long for the rest of the stations to drop their prices, because their pumps were siting idle and the ones across the street had people waiting in line.

Capitalism is good. Competition is good.

 

[ColoradoDennis]

It’s not all red.
Around here they use a blue-green dye.

Kevin

Yes; hence the generic term that’s used around here, “dyed diesel.” ??

 

[AmishMike]

We burn close to 100,000 gallons per year (9 months really) in our fleet. We have had to go to multiple suppliers because of allocation limits.
When we run dry, kids don't get to school.

 

[Wheelin98TJ]

Stations next to other stations.
Stations across the road from stations.
Anyone who wants to sell more can easily lower their rates, if they're not consignment sellers.
My little town had three stations, until a fellow along a few months back and re-opened one that had closed a few years back.
Suddenly we had a station that was selling 87 for 20 cents less than everyone else.
I talked to the owner one day while I was filling up.
He's not a consignment retailer. He buys on the wholesale market and pays on delivery, then he marks the product to what he thinks is good enough for him to cover his overhead and make a decent profit.

It didn't take long for the rest of the stations to drop their prices, because their pumps were siting idle and the ones across the street had people waiting in line.

Capitalism is good. Competition is good.

That is pretty common when a station has been closed and opens back up. They have to sell it cheaper than competitors to get customers back.

It will be interesting for you to see if he keeps that pricing strategy. Where it will hurt him is when prices are dropping and he isn't selling fuel fast enough.

 

[Lunentucker]

That is pretty common when a station has been closed and opens back up. They have to sell it cheaper than competitors to get customers back.

It will be interesting for you to see if he keeps that pricing strategy. Where it will hurt him is when prices are dropping and he isn't selling fuel fast enough.

He's a couple of months in and doing fine so far.

 

[Wheelin98TJ]

He's a couple of months in and doing fine so far.

It's a great time to be a fuel retailer.

The companies I work for, our margin on fuel for 2022 is 10.5% or about $0.40/gallon.

 

[Minty JL]

Truckers have been talking about this for the last 8 or so weeks. The shortage is supposed to happen sometime NOV-DEC and the shortage goes beyond fuel. If you have a Diesel JT stock up on DEF. The main ingredient for it comes from overseas and well need I say more.

 

[Rusty PW]

Truckers have been talking about this for the last 8 or so weeks. The shortage is supposed to happen sometime NOV-DEC and the shortage goes beyond fuel. If you have a Diesel JT stock up on DEF. The main ingredient for it comes from overseas and well need I say more.

I keep 2, 2.5 gal jugs of DEF on hand all the time. Along with 2 bottles of Hot Shots additive.

 

[BourbonRunner]

Wouldn't inflation work its way into earnings the same way it drives everything else up. In fact, if most goods are up 40%, and your earnings are only up 15-20%, you're probably losing ground.

Absolutely it does. If you take into account the rate of inflation, those "record profits" are substantially less and may only account to paper gains and break evens, if not losses.

That being said, the CPI is skewed and has been since the mid 1990's when Commerce removed the cost of a gallon of regular unleaded from the basket of goods it is based on.

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