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Future of Diesel Fuel Cost

March 5th, 2009 at 06:10pm Under Main Content

Unless I am mistaken, diesel fuel costs less per gallon to refine than gasoline. It follows that the pre-tax and pre-surcharge wholesale price should be lower on diesel fuel than gasoline since the ’stock’ is the same for the refined product. In mid-June last year, a gallon of diesel fuel cost $2.23. A year later, the average national price is $2.89, meaning haulers and recyclers are paying an additional 66 cents per gallon. Additional fuel cost shall be calculated only in case the average diesel fuel price during the month when the transportation service is offered has increased comparing with the basic diesel fuel cost. Additional fuel cost shall be added to the transportation service invoice.

The term DERV (”diesel engined road vehicle”) is used in the UK as a synonym for unmarked road diesel fuel. In India , taxes on diesel fuel are lower than on petroleum as the majority of the transportation that transports grains and other essential commodities across the country runs on diesel. 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. Shell Diesel Extra ( at no extra cost from the fuelcard people )is a fuel with an exclusive formulation that is designed to clean the engine. This can lead to better engine performance and increased fuel economy as well as reduced emissions.

One of the biggest advantages of biodiesel compared to many other alternative transportation fuels is that it can be used in existing diesel engines without modification, and can be blended in at any ratio with petroleum diesel. This completely eliminates the “chicken-and-egg” dilemma that other alternatives have, such as hydrogen powered fuel cells. Just this month, Ford India, a subsidiary of Ford Motor Company, started production of diesel engines at a new engine assembly plant to turn out another 50,000 diesel engines a year for the local market. India’s leading environmental group, the Centre for Science and Environment, is fighting what it calls a “mad craze for diesel ” in the country, so far with little effect. These crops are all capable of producing several gallons of fuel per acre that can power an unmodified diesel engine. Vegetable oil is converted into biodiesel through a chemical process that produces methyl or ethyl ester.

However, Stanadyne is not aware of any reason why a reputable quality additive such as Performance Formula should not be used in any diesel engine. Warranties should not be affected and indeed, several Fuel Injection Equipment repair/service facilities offer extended warranties on injection pump repairs if Performance Formula is used regularly. More recently, EPA rules have adapted this approach to farm, construction, industrial and other nonroad equipment , and to locomotive and marine diesel engines . The traps on new ULSD engines are to collect soot during warmup periods when combustion is not complete because the engine is cold. Once warm there is very little soot from any electronically controlled, non-modified PU engine.

The heart of the diesel engine is its fuel injection equipment and the major enemy of this equipment is poor quality diesel fuel. From our extensive research and testing and our experience in manufacturing diesel fuel injection systems, Stanadyne found that variations in diesel fuel quality around the world can adversely affect today’s precision fuel injection systems. Today’s diesel engines are almost as quiet as gasoline engines. Fuel filters may become clogged with particulates if a quick transition to pure bio-diesel is made, but bio-diesel cleans the engine in the process.

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