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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