By Aaron Stuckel

Diesel shortage has Co-op refinery rationing fuel

Nov 3, 2013 | 11:09 AM

A diesel shortage in Western Canada has the Co-Op refinery on rations.

Trucks were seen lining up the refinery in the last few weeks waiting to get their rations from the 78-year-old refiner.

“This is an integrated industry in Western Canada, and what happens in one part of the sector can drive sales in other parts of the sector,” refinery spokesman, Daryl Oshanek, said.

“Because of the harvest over this past fall—and the success that it was for the farming community—and some of the industry issues that were faced in Alberta, the Co-op refinery … saw an increase of sales of about 18 per cent in diesel in September compared to previous years. And in October, we saw a 28 per cent increase.”

This year was a record harvest for many farmers in the province, and one that would’ve involved a lot of trucking to transport crops. The other aspect increasing the demand for diesel was refinery shutdowns in Alberta which have pushed customers away from certain competitors and into the bays of Co-Op’s refinery.

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“For us, it’s been a good news story,” said Oshanek.

“We’re seeing sales. We’re selling every ounce of product that we are producing out of Regina.”

But for farmers and truckers, it means they’ve only been allowed 300 litres per fill, and Oshanek said it could be a while before things return back to normal.

“Once all the competitors get back on line with their inventories, that will work its way into the system again and things will improve,” he said, though he couldn’t say when that might be.

With files from  Alex Docking.

news@panow.com

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