Supply Chain Optimization

Why The Price Of Diesel Has Risen Faster Than Gasoline?

From the EIA: “We expect prices for gasoline, distillate fuel oil, and jet fuel to begin decreasing after May as refinery maintenance from April comes to an end, increasing production and reducing some of the pressure on prices in the current market.” That’s the good news.

The bad news is in the following graph:



  • Inventories of Diesel are at 17-year lows. In particular, inventories are so low on the East Coast that Love’s (Truckstop operator) worries about running out.
  • Demand has sustained while production in Europe is down (Russia + Ukraine), and the US refineries have been down for maintenance.
  • European demand is pushing prices up 88% (we think we have it bad).

15-minute webinar on June 9th. 1 PM CST on an advanced course on warehousing. Expect controversy and some great tips from veterans Jeff Pots and yours truly.