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Sunday 5 July 2020
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Major Factors Influencing Diesel Fuel Prices

While the cost to produce diesel fuel is less than producing gasoline, the contributing factors below will be the major issues to impact diesel fuel prices for the rest of the 2010 with some of the factors continuing to impact diesel prices for the next decade or even longer.

  • Expect the present on-highway diesel fuel tax of 24.4 cents/gallon which is 6 cents per gallon higher than the gasoline tax to go even higher to meet the new federal requirements for transition to lesspolluting, lower-sulfur diesel fuels in the United States.

The requirements of this federal law passed in 2006 must be met by the end of the 2010.

  • Implementation of an economy‐wide cap‐and‐trade program to reduce greenhouse gas emissions 80 percent by 2050 will find it’s way into an excuse for even higher diesel fuel taxes in the years ahead.
  • Increasing international demand for diesel fuel to power the rapidly growing number of diesel fueled consumer vehicles and big rigs in China, India, Latin America and Europe will continue to drive up diesel fuel prices in the coming decades.
  • United States and global refining capacity will be a factor that seems to always be the excuse to drive up prices during the period of high economic growth. Are these oil executives not smart enough to anticipate high demand or is it their favorite excuse while laughing all the way to the bank?
  • The American federal government will certainly look at adding even more excise fuel taxes for diesel and regular gasoline in the future to pay for the unprecedented and un-sustainable massive federal deficit threatening the American way of life.

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