Winter Kerosene Shortage Could Boost ULSD Prices

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shortage of ultra-low-sulfur kerosene is expected to drive up the price of fuel for truckers in cold climates this winter, fuel refiners and fleet officials said.

Kerosene-based No. 1 fuel is commonly blended with No. 2 diesel to make it flow better in cold weather. Kerosene and its chemical cousins, No. 1 fuel and jet fuel, are made in the same refining process.

Michael Leister, manager of fuels technology for Marathon Petroleum Co., said a “number of refiners” will choose to abandon the No. 1 market this year rather than “spend a lot of money to produce” kerosene components that have sulfur levels low enough to be mixed with ultra-low-sulfur diesel for on-highway use.

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