Don’t blame biodiesel for spotty diesel shortages

 a lot of talking going around regarding diesel shortages in Mn. On Monday, Oct. six, the Star Tribune released “Dayton eases rules with regard to diesel fuel. ” As the article does a good job associated with bringing to light the fuel situation that is cyclical in Minnesota, it do little to expand about what is causing these “shortages. ”

In all truthfulness, there were no diesel shortages within the Twin Cities, which signifies about 70 percent of the diesel powered market in Minnesota. There were spot shortages in Alexandria, Fargo, Grand Forks as well as Mankato.

The shortages in out-state terminals have triggered long lines at Double Cities terminals as out-state fuel distributors come to they Cities to get diesel. This case is nothing new with this time of year AND has nothing to perform with biodiesel. It has occurred this way every year for at least the final 10 years.

Some additional aspects to also take into consideration -- the wheat harvest often takes place from the end regarding July to the beginning involving August. This year, wheat pick was delayed and happened from late August in order to early September. On top of that, the actual sugar beet harvest is within full swing and in front of schedule and the corn and also soybean harvesting seasons are simply getting underway so diesel-powered demand has spiked in this terme conseillé of harvest needs.

An additional factor involved in the spot shortages is the price of diesel, that could be dropping for at least a month. Once the price is continually decreasing, people/companies delay their fuel buy until they absolutely need to purchase it. With the continued dropping price, no one was purchasing fuel to store in advance. Within shortages, prices increase significantly like we experienced in gas last winter and gas in May 2013.

Finally, there is speculation from a few groups that some diesel engine users delayed their energy purchases until the biodiesel requirement reverted to B5 upon Oct. 1 . While several users may have done this particular, the amount of people delaying acquiring fuel until B5 had been available would not add up to sufficient volume to cause gas shortages. There are farmers which are also requesting B10 along with B20 in October to prevent the diesel shortage in some areas - which are probably offsetting those that waited regarding B5 to be reinstated.

All together, the harvest season is really a busy time of year for maqui berry farmers and fuel suppliers. With regard to diesel fuel is higher right now, as it has in the past been for some time. Let’s hold on hope for continued good weather conditions and low diesel costs because as we know, things can transform quickly.

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