Friday, July 1, 2022

Diesel Oil Status

If you’ve browsed the automotive section of your local retailers lately, you’ve likely noticed a lot of bare shelves – particularly in the diesel oil section. You may have also noticed an increase in inquiries from new customers and accounts looking for diesel oil because they can’t find it elsewhere. Recent podcasts and articles published online have made wild claims about the state of the diesel oil market, even predicting that diesel oil will be unavailable for a full year. All of these factors have worked together to create a state of uncertainty, and for some people, even panic.

Here’s the straight scoop: There are issues affecting the diesel oil market and the supply chain of raw materials supporting the production of diesel oil remains unstable. This is not new. We have been battling these issues for more than a year and have successfully maintained a steady supply of diesel oil and supported sales growth in the diesel market. Thanks to the diligence and creativity of our corporate team, we will be able to support our current sales trajectory for the foreseeable future. The greatest threat to our ability to maintain a steady supply of diesel products is panic buying. If Dealers, customers and accounts start buying high volumes of diesel oil out of fear of a pending shortage, they will create a shortage. If everyone maintains their typical buying habits, we should have minimal issues maintaining our supply of AMSOIL diesel oils.

There is a great deal of misinformation out there. Some of the purported “news” articles and podcasts are filled with falsehoods and half-truths. The supply-chain issues plaguing the production of diesel oils are not new. In fact, AMSOIL is in a stronger position today than we were a year ago. While those issues are real and will continue for some time, there is no truth to reports of additive manufacturers shutting down or predictions of diesel oil being unavailable for a year or more. Again, the only way those predictions come true is if everyone panics and buys a year’s supply of diesel oil (see the toilet-paper shortage in 2020). Therefore, we are asking you to maintain the status quo. Continue buying and selling diesel oils as you normally would. Take advantage of new business as it comes your way, but do not purchase or support the purchase of abnormally large quantities or we will be forced to limit quantities available for purchase.