The diesel fuel shortage is having a domino effect in Alberta — construction projects are in jeopardy, retailers are rationing fuel and diesel theft is spiking.

Theft has become such a problem, according to David Strauss with Roy Larson Construction in Grande Prairie, that his company no longer fuels up trucks or machinery unless they're going to be used immediately.

"We've lost over $20,000 worth of fuel," Strauss said "We've got no choice. We have to fuel up in the mornings 'cause any machine parked out there is just a sitting duck for these guys. If they're rigged up properly, in five minutes they can have 450 litres sucked out of a tank. That's over $500 worth of fuel."

Strauss said he has also moved the company's large diesel storage tank into the middle of the property and has hired staff to guard the fuel around the clock.

Rick Serhan, with Rick's Mechanical Services in Peace River, said his construction equipment has also been emptied of its diesel, and he recently came close to shutting down a road construction project because he couldn't find any more fuel.

"Hopefully they will get the supply issue straightened out, but if they don't it'll bring the industry to its knees. You can't run without fuel," Serhan said.

"I just never thought you'd see the day when you can't buy diesel in Alberta."

Petro-Canada said a sharp spike in demand for diesel has caused the shortage.