Diesel Price Drop Expected But Sulfur Rule Could Bump it Up

April 12, 2000 9:58 AM, EDT

WASHINGTON — The Good News: Diesel fuel prices are expected to fall to an average of $1.38 a gallon this summer and drop another four cents by year’s end should domestic refiners meet high production expectations, and imported oil shipments continue to flow.

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	Bliley Raps EPA Over Diesel Pollution (April 3) EPA Expected to Issue Strict New Diesel Rules (March 22) Oil Industry Asks EPA to Rethink Diesel Plan (March 14) Study Points to Lower-Sulfur Fuel, Particulate Filters (Feb. 14) (Note: To return to this story, click the "Back" button on your browser.)

The Bad News: The new sulfur standard for diesel fuel that is due out soon could force up diesel pump prices between 2 and 25 cents a gallon as refiners pass on part of their costs to meet the requirement.

Both forecasts came out of an April 6 briefing here on near-term petroleum prices conducted by the Department of Energy.

Just how much sulfur the Environmental Protection Agency will allow in diesel fuel affects the technology refiners will need. They want the sulfur cap set no lower than 50 parts per million, down from the current level of 500 ppm, but engine manufacturers say the removal of all sulfur would enhance engine performance and contribute to better air quality.

For the full story, see the Apr. 10 print edition of Transport Topics. Subscribe today.