The CEO of United Refining Co., John Catsimatidis, said Wednesday the East Coast may experience diesel rationing and shortages in the summer, Bloomberg reported.
“I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” said Catsimatidis during a phone interview, the outlet reported. “Right now inventories are low and we may see a shortage in coming months.”
Catsimatidis claimed that there won’t be a shortage of regular gasoline, but prices would soar to record highs. (RELATED: ‘That Strength That We’ve Built Is Inflation’: Biden Attempts To Explain Plan To Address Rising Prices)
“Drivers will pay the highest gasoline prices ever paid for Memorial Day,” Catsimatidis said.
NYC billionaire and gas station owner John Catsimatidis warns that the East Coast may face diesel shortages and rationing this summer https://t.co/dBLac7atW6
— Bloomberg (@business) May 11, 2022
National inventory levels are reportedly at a 17-year low after President Joe Biden’s ban on Russian oil imports in March. Fuel stockpiles on the East Coast, however, have reached their lowest in 32 years, according to the outlet.
The East Coast has been experiencing issues with fuel supply as far back as 2019 following an explosion at Philadelphia Energy Solutions which permanently closed the refinery. The hacking organization known as “DarkSide” was accused of using a ransomware attack against Colonial Pipeline in 2021 which supplied 45% of the oil used by the East Coast.
East Coast fuel prices for regular gasoline surged to an average of $4.237 which is $1.374 higher than last year, according to a Monday update by The United States Energy Information Administration (EIA). Diesel fuel prices have reached a record $5.907 on the East Coast, a $2.747 increase from last year.