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Why recent retail diesel prices have differed from gasoline prices
Recent U.S. retail diesel prices have continued to be much lower than at their peak last July of $4.76 per gallon - they were down by roughly $2.22 per gallon as of the middle of July of this year. Further, the national average for diesel actually fell below gasoline’s average price in mid-May and continued the trend through the end of June, based on data from the Energy Information Administration. With gasoline prices falling faster than diesel in July, the diesel price average rose above that of gasoline. The national average of diesel prices was $2.542 while that of gasoline was $2.528 as of July 13.
Longer-term factors that have been tied to variations in gasoline versus diesel prices include the different seasonal price variations for the two fuels, and differing tax rates.
Factors in more recent years have included at-times strong growth in U.S and world diesel demand, the relative unavailability of diesel imports, and the introduction of ultra-low sulfur diesel in 2006, which is contributing to improved air quality but costs more to manufacture. These factors are detailed in the PDF below:
Why recent retail diesel prices have differed from gasoline prices
Size: 80 KB | Date: July 15, 2009 | License: Free
API Weekly Diesel Update
The national average retail price of diesel fuel as of Monday, November 9 was $2.801 per gallon according to the U.S. Energy Information Administration.
Size: 99 KB | Date: November 11, 2009 | License: Free
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U.S. Environmental Protection Agency (EPA) standards now require a major reduction in the sulfur content of diesel fuels and emission levels from diesel engines and vehicles. To meet the EPA standards, the petroleum industry is producing Ultra Low Sulfur Diesel (ULSD) fuel, a cleaner-burning diesel fuel containing a maximum of 15 parts-per-million (ppm) sulfur.
At least 80 percent of the highway diesel produced or imported is now ULSD fuel, replacing most Low Sulfur Diesel (LSD) fuel, which contains a maximum of 500 ppm sulfur. Used in combination with cleaner-burning diesel engines and vehicles, ULSD fuel is improving air quality by significantly reducing emissions. By December 1, 2010, all highway diesel fuel offered for sale must be ULSD fuel. Both ULSD fuel and Low Sulfur Diesel fuel will be available through 2010. Some retail outlets will sell ULSD fuel, others Low Sulfur Diesel fuel, and some will sell both.
Find out more by visiting Clean Diesel Fuel Alliance.
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The federal requirements now in effect for producing diesel fuel with a far lower sulfur content has clearly led to many changes in the refining process, and with them have come changes in a number of API standards. API has developed a set of labels for dispensers, approved by the EPA, to provide customers with information about the applicability of the new diesel fuel.
Click on links below to view/download appropriate Fuel Labels:
API Suggested Diesel Pump Labels.