Low-Sulfur Rules May Wipe Out Diesel Price Drop
WASHINGTON — The Good News: Diesel fuel prices are expected to fall to an average of $1.38 a gallon this summer and drop another four cents by year’s end should domestic refiners meet high production expectations, and imported oil shipments continue to flow.
The Bad News: The new sulfur standard for diesel fuel that is due out soon could force up diesel pump prices between 2 and 25 cents a gallon as refiners pass on part of their costs to meet the requirement.
Just how much sulfur the Environmental Protection Agency will allow in diesel fuel affects the technology refiners will need. They want the sulfur cap set no lower than 50 parts per million, down from the current level of 500 ppm, but engine manufacturers say the removal of all sulfur would enhance engine performance and contribute to better air quality.
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Both forecasts came out of an April 6 briefing here on near-term petroleum prices conducted by the Department of Energy.
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For the full story, see the Apr. 10 print edition of Transport Topics. Subscribe today.
