Projection form Diesel Prices
For as long as the prices of crude oil and the demand for distillate fuels are maintained at a high level, the retail diesel fuel prices will in most likelihood be high, too. The Energy Information Association (EIA) has released a report on what is likely to happen for remainder of 2008 and 2009 for the United States. It states that the national average retail prices for diesel fuel will reach its highest point during the third quarter of 2008 then it will decline by the fourth quarter of 2009.
Being a highly complex fuel, diesel fuel?s chemical structure changes from the time it leaves the refinery to the time it is pumped into holding tanks and fuel station to the time it gets pumped into the vehicle. Oxidization and structural changes occur in the fuel molecules. The energy per unit volume of the fuel can change during this phase, and this is what will cause your engine to have poor performance.
To combat the effects of fuel degradation and increase the fuel?s cetane value (discussed in detail below), the right type and ratio of fuel additives have to be used. Among a myriad of benefits, the engine will be able to obtain more power from a gallon of fuel.
Diesel fuel has more energy per gallon as compared to gasoline. The three types of diesel fuel are”, 2D, and a combination of the two. The lighter grade is”, and it offers less energy than 2D. It is more commonly used to reduce, if not eliminate, the gelling of fuel during cold winter climates; some people combine it with 2D.
Another factor that affects the prices of diesel fuel in the United States is the geography. West Coast countries have generally higher prices than the other parts of the country. This holds true especially for California because of the taxes and issues on the supply. These countries add more tax?that is, they combine the state and local taxes, and add another tax value on top of the federal excise tax and state tax. Washington is one of the countries that have the highest tax.
The West Coast countries also have higher prices for diesel fuel because they have relatively fewer supply sources. Because majority of the refineries in this region are located in California, a single refinery that encounters difficulties in operations will greatly affect the diesel supply. In turn, this may elevate the prices because there will be fewer supply to meet the high demand. More so, the West Coast is very far from the Gulf Coast and other foreign refineries?that is.
Any fluctuation on supply-demand will generally result in price fluctuation because it will take some time to transport relief supplies to these countries. The farther the relief supplies are, the higher the diesel fuels prices will be and the longer it will remain at such price.And how will this effect our right to buy car cheap insurance!
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