Though diesel power is experience increased popularity among United States consumers, the wild fluctuations in the price for a gallon of diesel may put some potential oil-burner owners back on the gasoline bandwagon.
Detroit Free Press reports the price fluctuations are linked to circumstances unrelated to those affecting prices for gasoline. Gasbuddy.com chief oil analyst Tom Kloza explains that part of the swings that occurred this winter was due to the similarities between diesel and heating oil in wide use throughout Europe and the Northeastern United States. Another factor was increased demand for natural gas, prompting utilities and businesses to use diesel to generate electricity. Those and other unnamed factors drove the global price for a barrel of diesel between $119 to $130 in Q4 2013 and Q1 2014.
As for the overall market, organizations such as IHS Automotive and Diesel Technology Forum expect adoption rates of 6 percent to 9 percent by 2020, compared to 3 percent of the U.S. market currently. In addition, some 40 new vehicles are expected to enter showrooms within the next two years, ranging from pickups and SUVs to compact cars.
Diesel’s new-found popularity in the U.S. and developing economies means the oil fuel is the most common around the globe, surpassing gasoline. In turn, refiners and governments will see more profit in production and taxation from diesel.