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Diesel Vehicle Trends: Part 2

Posted in: Fuel and Trucking, Biodiesel

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/// Guest post by contributor Jon ScharingsonRenewable Energy Group

In my last post on diesel vehicle trends, I highlighted some of the manufacturer trends taking place in the diesel industry. From BMW to Chevy, auto manufacturers have unveiled a number of diesel-powered models in 2014; this trend is expected to continue over the next decade.

Projections for the future of fuels are pointing squarely at diesel. According to the Energy Information Association (EIA), they forecast that drivers will consume 17.1 percent more diesel fuel by 2023, and 26 percent more by 2040.

However, the primary limiting factor for the expansion of diesel popularity is cost. In 2013, diesel averaged 42 cents more per gallon than gasoline at the pump. But this must be taken into context.

While the per gallon fuel costs may be higher, these new diesel vehicles can achieve 20 to 40 percent more miles per gallon than gasoline-powered vehicles. Run the numbers and a consumer can quickly see that diesel is less expensive than gasoline on a cost per mile basis.

In 2013, approximately 50 percent of the fuel retail outlets in the United States sold diesel fuel. However, anecdotal reports indicate that this percentage will increase as more new and renovated truckstops and c-stores install diesel fuel tanks and dispensers, largely in response to increasing consumer demand and to capture healthier margins on diesel fuel.

You may also recall from my earlier post, that this consumer is also environmentally conscious. By adding biodiesel blends to the mix, retailers can set themselves apart from the competition and potentially add additional margin to their bottom line.

As more and more consumers turn their fuel focus to diesel, the need for diesel fuel at retail locations will also rise. With the infrastructure and expertise that exist at truckstops and travel plazas across the nation, these locations are well-suited to capitalize on the growing diesel market and add biodiesel blended fuel to their offering.  

/// 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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About the Author

Jon Scharingson

Jon Scharingson