Diesel Fuel Prices

     

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The American trucking industry will probably never again see the historical pricing pattern of diesel fuel prices being used as the main determination of diesel fuel price fluctuations. 

Gone it seems are the days when only cold winters pushed diesel prices up due to demand for home heating oil.While this historical pattern factor can still impact fuel prices, there is new factors to consider when seeing the price raising upwards to new records.

These days anowner operator, a small fleet owner and the owner of large transportation companies definitely need to know more than if it is going to be a really cold winter.

These new major factors discussed below will be controlling diesel fuel prices for decades to come.

Whether you own one truck or a hundred semi-trucks, you need to stay up to date on these new important price changing factors.

• China's frantic purchasing pace taking place around the world on a daily basis to secure and control larger and larger fuel contracts will impact your price at the pump. China's willingness to bid up the oil contract prices along with their insatiable desire to secure mineral and scrap metal contracts around the world should make the next two decades very interesting. 

• Speculators using any global conflict, production issue or almost any excuse to push prices higher are important factors
  
• Lack of adequate European and American diesel fuel refining capacity at any given time is affecting the price at the pump. Year after year, a person keeps hearing the excuse of not enough refining capacity. Why is the petroleum industry not required to build enough refinery capacity or is the government at fault deliberately to increase their collection of fuel taxes with higher prices? 

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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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