As people around the nation have probably kept noticing the pricing on diesel continues to stay high while gas seems to keep falling. Here in Dallas I’ve seen prices as low as $2.17 for unleaded, while diesel has only fallen to $2.69.
There are several reasons why. Mark Madeja is with AAA. “Well blame it on supply and demand, and right now, demand is high and supplies are very, very tight.” Madeja says there are more diesel operating vehicles being produced worldwide which has impacted diesel consumption.
Gas prices usually drop this time of year, when the summer peak driving season is over and supplies aren’t as tight. But that isn’t the gas with the supply of diesel, which remains more constant because of the fuel needed in the trucking industry.
Refineries are working right now to meet new EPA diesel standards, which require lowering sulfur levels by October 15th. Mark Madeja: “Industry analysts say right now, diesel prices are going to remain high for probably the next month or so. But once the refiners are able to produce these new EPA blends, the prices should start to fall back.”
Another reason the supply of diesel is tight right now is that refineries are producing less diesel, in order to make more heating fuel for many people living in the northeastern United States.
I really enjoyed this comment from Captain Obvious:
Mark Gibson hopes it drops even more, which would be good news to his wallet. “In reality, back down to, if it would get down to the two dollars a gallon and stay there, it would be a lot better.”
Anyway there’s a bit more solid of an answer of the continued high prices.