Trucking News

LiberalTrucker contributed this post for Masslogics Trucking News.  For most of the past 2 decades, the price of diesel fuel has always been lower than gasoline. However, this pricing difference has evened out in the last 2 years. Truckers are now getting to feel the same pain at the pump as car owners.

Diesel prices have swelled in recent weeks to all time high levels, putting a strain on truck drivers, airline industry and most of the economy, at a time when there is already a recession in progress.

Why the diesel fuel has become so expensive has been attributed to many causes such as supply disruption caused by federally-mandated decrease in the allowable amount of sulfur in diesel fuel. Others point to the growing global demand for diesel fuel. Part of the most recent price hikes have been traced to the Katrina Hurricane with the disruption of the refineries, oil wells and fuel shipments.

Further the past few winters have been cold, demanding and long, thus accounting for an increase in the demand for heating oil, with further raises in the competition for crude, which raises the prices. Other factors include the global demand for diesel. In some European countries, more than half the cars have diesel engines.

At the same time, cooperative shipments of regular gasoline from other “friendly” countries that were so helpful following the hurricanes never showed up with the diesel fuel.

Still another important factor has been the recent manufacture of a new, cleaner diesel fuel. The goal of “clean diesel” is to eliminate sulfur from diesel fuel. Lower-sulfur fuel is claimed to be cleaner and have no health hazards.

In October 2007, the national average for a gallon of diesel fuel rose to a record $3.10. Since then there has been a steady increase in the price and there is hope that the summer may bring a slight drop in the prices. The EIA does say that there will be light at the end of tunnel. The big question is when?