Diesel’s supply crunch could raise costs far beyond the pump

A diesel shortage isn’t just a problem for truckers. Diesel powers the trucks that deliver food, clothing, building materials and other goods so a prolonged shortage can affect costs throughout the economy.

Tulane energy expert Eric Smith says the crunch stems from lost overseas production and limited refinery capacity. He argues that restarting closed U.S. refineries, including two units in Louisiana, could help ease the shortage faster and at far lower cost than building new facilities. But he warns that the pressure could persist even if the wars disrupting supply ended tomorrow, as damaged refineries and strategic reserves take time to recover. 

Smith said refinery capacity is central to the shortage, and that replacing Canadian crude supplies to the Midwest with Venezuelan oil would be difficult. Restricting diesel exports could also reduce U.S. gasoline and jet-fuel production.

By Tulane University for Newswise. The Gayly online. 11/8/26 @ 6:05 p.m. CST.