Less diesel, high prices

The amount of available diesel and other distillate fuels in the U.S. is lower than usual heading into the winter, especially in the Northeast, resulting in high prices for the sought-after fuels, according to the Energy Information Administration. In October the U.S. had about a 25-day supply of distillate fuels, and demand for the fuel used to heat homes grows in the winter, the EIA said. One reason supplies are low is that refineries have produced less diesel since 2020. Nearly a dozen refineries shut down during the coronavirus pandemic. One major refinery closed in 2019 after an explosion and never re-opened, and several others are being converted to make renewable fuels. Meanwhile, the U.S. has been exporting more diesel fuel this year than it did in the past. Low inventories are contributing to higher prices. A gallon of diesel fuel was selling for $5.34 on average last Thursday, up 47% from the same time last year, according to AAA. Higher diesel prices are driving up the cost of all delivered goods, from furniture to fruit.