Billionaire refinery and fuel station owner John Catsimatidis warned that the East Coast might experience diesel shortages this summer as inventories hit multi-decade lows and refining capacity slumps.
"I wouldn't be surprised to see diesel being rationed on the East Coast this summer.
"Right now, inventories are low, and we may see a shortage in coming months," Catsimatidis, CEO of United Refining Co., told Bloomberg.
Catsimatidis' warning comes as East Coast diesel inventories have fallen to the lowest levels since 1990. National stocks are around a two-decade low.
Diesel prices have risen for the past 17 days and hit a new record of $5.557 a gallon on Thursday, according to American Automobile Association. Gas prices are also at a new record of $4.418.
The billionaire's warning follows a report from logistics firm FreightWaves of "3 very large trucking fleets" preparing for diesel pumps at fuel stations to run dry across the Mid-Atlantic and Northeast regions this summer.
Founder and CEO of FreightWaves Craig Fuller tweeted a few pictures of notifications from fleet operators, warning their drivers about "imminent" diesel shortages.
The East Coast diesel shortage situation appears dire as now an oil/gas billionaire has confirmed what trucking fleets are warning about.