3 Factors of Diesel Fuel Price Changes

Written on: November 20, 2023

Get great value with Kimlin Energy’s diesel fuel services for your business!

cost of diesel Poughkeepsie, ny The volatile fluctuations in gasoline prices in recent years have been a significant source of worry for both consumers and businesses alike.

Despite its higher price point, diesel fuel often goes unnoticed. However, it plays a crucial role in our economy, supporting fleets that transport goods and serving as a staple in various industries like agriculture, manufacturing, and construction. Municipalities heavily rely on diesel to power an array of vehicles and equipment, from school buses to snowplows. Even our own propane and heating oil delivery trucks depend on the power of diesel.

If your business relies on diesel fuels, you are likely feeling the strain of high diesel prices. While these increased costs aren’t easy, there’s no getting around the day-to-day expense of using diesel fuel.

Harness the power of Kimlin Energy’s top-tier diesel fuel services to take control of your business expenses. Our comprehensive on-road and off-road diesel solutions provide the ideal solution for cost management, ensuring maximum efficiency and savings.

What impacts diesel fuel prices?

Production costs: Since 2006, the Environmental Protection Agency (EPA) has implemented increasingly stringent sulfur regulations for diesel fuel to reduce emissions. This phase-in was completed by 2014. According to the new standards, diesel fuel must now contain no more than 15 parts per million of sulfur, a significant decrease from the previous 5,000 ppm. While this change is highly beneficial for air quality and the environment, it has also impacted the refining costs of diesel fuel.

Demand: Diesel serves as a vital fuel source for various industries, including transportation and construction. However, it is worth noting that the production output of diesel is relatively lower compared to gasoline. While approximately 19 to 20 gallons of gasoline can be obtained from a barrel of crude oil, only 11 to 12 gallons of diesel can be extracted. Despite this disparity, the demand for diesel remains consistently high across all sectors.

Taxes: In the United States, the disparity in taxes between diesel and gasoline fuel is evident. While gasoline is subject to a federal excise tax of 18.4 cents per gallon, diesel fuel bears a significantly higher tax rate of 24.4 cents per gallon. Furthermore, individual states impose their own taxes on diesel fuel.

Kimlin Energy’s diesel fuels services

If you oversee a fleet of diesel-powered vehicles and equipment, you understand the critical role it plays in your budget. Ensuring the successful execution of all tasks leaves no room for subpar or unreliable diesel fuel delivery and service.

Although Kimlin Energy cannot control production costs, taxes, and diesel demand that influence pricing, our cost-effective diesel fuel services can enhance your business’s efficiency and productivity, helping it thrive. Ultimately, this will have a positive impact on your bottom line.

At our company, we highly cherish our partnerships and believe in offering more than just competitive prices. Our commitment is to deliver real value to our commercial customers. With our hassle-free service, we provide bulk diesel fuel delivery directly to your business premises or job site. Experience convenience and reliability, all in one package.

As a local business, we are dedicated to providing personalized and efficient diesel fuel services, setting us apart from larger national companies. Whether you need an emergency delivery to meet demand or simply want to adjust your delivery schedule, you can rely on us for prompt and reliable service.

With diesel fuel services from Kimlin Energy, your business will always have the diesel fuel it needs. Contact us today for a consultation.