Saturday, October 29, 2022

Diesel

The country is facing a shortage of diesel fuel and unless something is done the price will sky rocket and this means higher prices for all goods. Farmers are burning diesel to harvest crops and people in the Northeast are filling their oil tanks for winter. If supplies run out raising prices will not help. One alternative is to stop exporting diesel. Currently about 40% of the diesel produced on the US Gulf Coast is exported to countries that are in dire need. Companies can get a better price by exporting so if the government wants to curtail exports they might have to pay the companies the difference. The government could restrict exports by invoking the Jones Act which restricts water transportation of cargo between US ports to ships that are US owned, US crewed, US registered and US built. Will the government put the US first if it comes to a shortage.

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