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.
However, these are just projections; hence, there is no assurance or guarantee because it can be greatly affected by the instability and unpredictability of the prices of crude oil and petroleum products. Among the many factors that affect the prices, below are the main ones that are faced by United States, especially the West Coast countries:
The Environmental Protection Agency (EPA) standards for diesel fuel sulfur content can also alter the prices for diesel fuel. What needs to be taken into consideration is the logistics of delivery of the Ultra-Low Sulfur Diesel (ULSD) fuel to retail service stations. Most of these products are transported via pipelines to reach the bulk terminals then to tanker trucks then finally to the retail stations. Contamination may happen to the ULSD fuel because these pipelines, storage, and local distribution systems also serve to deliver other diesel fuels and petroleum products, which have higher sulfur content.
The chain of processes that create the value inherent in diesel fuel begins from the moment crude oil is purchased. Crude oil, as mentioned previously, is the base ingredient from where diesel fuel is derived. This base ingredient is traded internationally, with price determined by supply and demand dynamics. Crude oil is primarily produced by oil-exporting countries, all of which often belong to big oil cartels that dominate the supply dynamics in the market.
The demand for energy is not limited to the United States, but expands across Europe, China, and India. The thirst for energy for consumption occurs both in the level of industry, as well as individual consumers. On the consumer level, this means that the strong preference for diesel-powered vehicles has led to the need for diesel fuel in order to maintain the operations of these vehicles. In the industry level, expanding economies like China and India, and more stable economies like European ones, all rely on the supply of diesel fuel to run many of their transport sectors and even many of their industries. The high demand from both sectors has driven the prices of diesel fuel up: with limited supply, people use money in order to gain preferential access to the resource.
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.
It neutralizes acids during combustion. It minimizes the wear of the acidic cylinder and it reduces the rate of engine oil depletion; thus, maintaining the quality of the engine oil for better protection.It cleans fuel injectors and piston rings for better combustion and sealing. This reduces soot loading, controls soot-related wear, and increases engine oil viscosity.Fuel degradation increases deposits, which can promote the plugging of filter. The additive improves oxidation and thermal stability of the diesel fuel.It cleans dirty injectors as it improves the acceleration and restores horsepower, and in the long run it will enhance performance.An alcohol-free additive protects fuel systems against water contamination, helping to prevent emulsions. It also protects the metal against rust.To combat the increasing diesel fuel prices, you can consider using a diesel fuel additive and experience the change in your expenses as well as the drivability of your vehicle.And how will this effect our right to buy car cheap insurance!
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