Sandy reduces Indiana's diesel supply

INDIANPAOLIS (WISH) - Hurricane Sandy is having an unexpected impact on Indiana. Supplies of diesel fuel are dwindling.

It hasn't hit major gas station chains yet. But if it keeps going the way it is, supply problems or higher prices at the pump might not be too far down the road.

Right now, the shortage is having its biggest impact on smaller oil companies like Nelson Oil in Indianapolis. Nelson Oil sells what is called "unbranded" fuel to trucking companies and other businesses that supply schools like Indianapolis Public Schools, to fuel its buses.

The company has had trouble finding a supply of the unbranded product. According to Robin Nelson, Marathon is its biggest supplier, and Nelson Oil hasn't been able to get diesel from them for the past two days.

"This is definitely effects from Hurricane Sandy. It's a trickle down. For the last couple of weeks fuel has been being taken from Illinois, Indiana, even as far away as Kansas and Missouri to be brought over to the east coast until they could get their pipelines up and running," she says.

So the big companies are using the diesel that is available for their own branded stations.
Much of the product used out east during Sandy was made into fuel oil to heat homes there. While most Hoosiers aren't feeling the pinch yet, Nelson says that if supplies don't ease up this weekend, by early next week people might feel it. Initially it would be in higher diesel prices. And over time it could result in shortages for some companies. But that is still down the road.