For as long as anyone can remember, until recently that is, diesel fuel was always less expensive than gasoline, which made things easy for fleet fuel managers. Why then have diesel fuel prices risen to the point of being higher than gasoline?
There are many factors that have contributed to this significant price rise. Certainly the evolution of efficient, small and medium duty diesel engines has increased demand for diesel. The acceptance of diesel powered automobiles, and light and medium duty trucks worldwide, with the exception of the United States, has also lead to an increased demand for diesel fuel. The tide has changed from a gasoline powered world economy to a world economy powered by diesel fuel. Diesel powered cars in the U.S. have not been accepted as it has in other parts of the world, in particular Europe, even though these engines are more efficient that their gasoline powered cousins. This rejection in this country can be attributed to the fact that Detroit has never pursued the development of diesel power and have concentrated more on the development of hybrids and electric powered cars. This may be due in part to the debacle of the Cadillac diesel in the 80's - a converted gasoline engine that was plagued with problems. Couple these factors with the higher price of diesel relative to gasoline and the public perception that diesel power for everyday commuting is a no win proposition.... Read More