Data on Diesel

For many scrap processors and other recyclers, fueling up trucks, mobile material handling equipment and some processing equipment can involve acquiring diesel fuel.

According to the American Petroleum Institute (API), Washington, 70 percent of the nation’s goods are transported in diesel-powered vehicles, making it America’s primary commercial fuel.

As with gasoline, crude oil is the source of diesel fuel. Refinery operators must decide what to produce when in terms of diesel fuel vs. gasoline vs. other products, based on a mix of supply and demand calculations. This can be one key factor affecting the fuel’s price.

According to API, "As with gasoline, the major components of diesel fuel prices are the cost of crude oil to refiners, federal and state taxes and the cost to manufacture, distribute and market the diesel fuel. Diesel prices generally reflect price trends for crude oil. Short-run factors that also affect prices include supply shortages resulting from refinery outages, transportation issues, adverse weather conditions or pipeline problems."

Another recent factor has been the mandate to use ultra-low sulfur diesel (ULSD) formulations. The API has prepared a frequently asked questions (FAQ) section of its Web site on how this new requirement has affected the supply and price of diesel fuel.

A. Although ULSD fuel will be the dominant highway diesel fuel produced, the EPA does not require service stations and truck stops to sell ULSD fuel. Therefore, it is possible that ULSD fuel might not be available initially at every service station or truck stop and that a diesel retailer may choose to sell low sulfur diesel fuel instead of ULSD fuel.

A. Owners of 2007 and later model year diesel-powered highway vehicles must refuel only with ULSD fuel. Owners of 2006 and earlier model year diesel-powered engines and vehicles may use ULSD or low sulfur diesel fuel during the transition period. Only ULSD fuel will be available for highway use starting Dec. 1, 2010.

A. Federal regulations require the labeling of all diesel fuel pumps to specify the type of fuel—ULSD fuel or low sulfur diesel fuel—dispensed by each pump. Similar instrument panel and fuel inlet/fill cap labeling is being mandated for 2007 and later model year engines and vehicles that require ULSD fuel. Consumers are advised to check the pump labels and vehicle labels to ensure they are refueling with the proper diesel fuel consistent with their vehicle warranties.

A. ULSD fuel will enable the use of cleaner technology diesel engines and vehicles with advanced emissions control devices, resulting in significantly improved air quality. Annual emission reductions will be equivalent to removing the pollution from more than 90 percent of today’s trucks and buses, when the current heavy-duty vehicle fleet has been completely replaced in 2030.

A. Only ultra low sulfur kerosene (No. 1 diesel with no more than 15 ppm sulfur) may be blended with ULSD fuel to improve cold weather performance. With so many kerosene formulations on the market, care must be taken to select kerosene with a maximum of 15 ppm sulfur. Blend rates will remain the same as with low sulfur diesel fuel.

A. ULSD fuel costs more to refine and distribute than low sulfur diesel fuel. No one can predict with certainty the price of ULSD fuel at the pump. Many factors affect the consumer price of fuels, including crude oil price on the global market; geopolitical, weather, transportation and economic events; and supply and demand.

A. There should be no noticeable impact on overall power using ULSD fuel. Fuel economy may be reduced slightly because the process that removes sulfur also can reduce the energy content of the fuel.

A. Engine and vehicle manufacturers expect ULSD fuel to be fully compatible with the existing fleet, including 2006 and earlier model year vehicles. In some instances, the introduction of ULSD fuel to older vehicles may affect fuel system components or loosen deposits in fuel tanks. As part of a good maintenance program, owners and operators of existing cars, trucks and buses are encouraged to monitor their diesel-powered vehicles closely for potential fuel system leaks or premature fuel filter plugging.

A. Diesel-powered engines for 2007 and later model year vehicles are designed to operate only with ULSD fuel. Improper fuel use will reduce the efficiency and durability of engines, permanently damage advanced emissions control systems, reduce fuel economy and possibly prevent the vehicles from running at all. Manufacturer warranties are likely to be voided by improper fuel use. Additionally, burning low sulfur diesel fuel in 2007 and later model year diesel-powered cars, trucks and buses is illegal and punishable with civil penalties.

A. Like low sulfur diesel fuel, ULSD fuel requires good lubricity and corrosion inhibitors to prevent unacceptable engine wear. As necessary, additives to increase lubricity and to inhibit corrosion will be added to ULSD fuel prior to its retail sale.

A. The new EPA standards provide strong incentives for suppliers to provide the proper ULSD fuel formulation. Civil penalties of up to $32,500 per violation per day can be assessed for noncompliance with EPA’s ULSD fuel standards or for misrepresentation of the sulfur level of diesel fuel.