As of June 27, Pennsylvania has suspended its 2% biodiesel content mandate in diesel fuel sold for on-road use in the state. The suspension is in effect through July 26, 2022.
PMTA made the request of the PA Department of Agriculture for the suspension in response to reports by PMTA members and other companies of temporary shortages of diesel in some areas of the state.
Pennsylvania is the only east coast state that has a biodiesel mandate like this, preventing Pennsylvania suppliers from sourcing diesel fuel from outside the state. Suspending the biodiesel requirement opens the market to out-of-state purchases and should have the effect of evening out supply chain issues that have prevented distribution of PA-compliant diesel to some suppliers.
The Department of Agriculture is able to issue the suspension if it determines that doing so is necessary due to increased cost to consumers or insufficient quantity or distribution of the fuel. In issuing its order, the agency noted that, "the extreme price fluctuation and limited inventory from wholesalers have caused low stock and rolling outages of diesel fuel throughout Pennsylvania."
The Department of Agriculture will be monitoring supply conditions throughout the state in the coming weeks and may consider modifying, terminating, or extending the order.
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