By MIKE COURSON
Great Bend Post
Fuel prices are affecting virtually everything around the nation. A new type of fuel crisis may be in the works now as U.S. diesel supplies are becoming critically low. Nationwide shortages and price spikes are expected over the next six months, but Barton County Road and Bridge Director Darren Williams said county rates are locked in at previous, lower rates.
"It's very important to get it contracted out," he said. "The past few years we've been doing that, and we've been getting a better price with the futures. It hasn't come back to bite us yet. This year, especially, I don't see the diesel price going down for a while."
The average price for a gallon of diesel nationwide this week was $5.30, up from $4.87 a month ago and $3.63 a year ago. Williams said the Road and Bridge Department used around 68,000 gallons of diesel in 2021, and typically uses about 70,000 gallons. Small increases in price, therefore, can cost the county a lot of money.
Williams said the county has its price locked in with American Plains Co-op through October 2023, but if things get really bad, obtaining diesel could be an issue.
"If there's a shortage of diesel and they can't get it, that means we won't be able to get it," he said. "It could be a long winter if we have a snowstorm and don't have any diesel."
American Plains Co-op Energy Manager Rick Breit remains optimistic about the impact locally. "One advantage we have in this area is we have CHS Refinery at McPherson," he said. "It would basically take an act of war, that type of thing, to shut that place down. We're lucky we have a refinery 60 miles away."
Still, Breit said American Plains Co-op is encouraging customers to keep their tanks on the full side, even with the high prices of fuel. Even with a shortage, American Plains will continue to honor contracts, like the one with Barton County.
"On contracted fuel, that price is locked in, and we'll honor our contracted customers and try to get them fuel because they have a contract," Breit said.
Stocks of diesel and other distillate fuel oils were the lowest in 40 years on Oct. 21. Inventories were down roughly 11 percent from the 10-year average to begin the year, and have steadily declined to 20 percent below the 10-year average in October. With the shortages, diesel prices are now $1.45 per gallon higher than gasoline.