/// Guest post by contributor Jon Scharingson, Renewable Energy Group
Low fuel prices have been a major story for several months now. But if history is a guide, prices will eventually rise to their previous levels and higher, and the cost to fill up will again be a major concern among drivers.
What is increasingly seen as being just as inevitable is a change in the type of fuel drivers choose to put in their tanks.
Diesel is on the rise and gasoline is dropping. Just take a look at the numbers from the 2014 annual energy outlook by the U.S. Energy Information Administration (EIA):
- Diesel fuel consumption in the U.S. is to increase by 17 percent between 2012 and 2023 and 26 percent by 2040.
- Over those same two periods of time, gasoline consumption is forecast to decrease 11 percent and 24 percent, respectively.
This shift is already underway. Diesel car and SUV registrations in the U.S. increased 24 percent from 2010 through 2012, compared with 2.75 percent growth for all car and SUV registrations, according to Diesel Technology Forum.
Audi, BMW, Chevy, Jeep and Dodge all launched new diesel models in 2014. The EIA predicts a 349 percent increase in diesel-powered light-duty vehicles by 2023.
Perhaps the biggest reason for this change is the CAFE standards coming over the next decade, which will require that cars and LDVs have significantly better fuel economy. Diesel-powered passenger vehicles are up to 40 percent more fuel efficient than gasoline cars.
Despite this trend, only about half of the nation’s fuel retail outlets sell diesel. So while half of the outlets are making money off of this growing customer base, the rest are leaving money on the table.
Drivers, leading automotive brands and the government are not sitting idle, and neither should you. Having a better understanding of these trends and what they can mean to your business is critical to evaluating where to make investments.
Click here to download The Downfall of Gasoline and the Rise of Diesel. Fuel Customers Are Changing — Is Your Business Ready?
/// Read more guest posts on biodiesel posts here.
{Guest Post} Guest post provided by NATSO Chairman's Circle member Jon Scharingson, Renewable Energy Group. Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. With more than 210 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. Learn more about Renewable Energy Group.
The opinions and advice given by guest post contributors are not necessarily those of NATSO Inc. The posts should not be considered legal advice. Qualified professionals should be sought regarding advice and questions specific to your circumstances.
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