PEORIA, Ill. – If you think the price of unleaded is bad, try having to fill up your vehicle’s tank with diesel fuel.
GasBuddy.com says for the first time since March, the national average price for a gallon of diesel dipped below $5 a gallon, though it’s still way over that in the Peoria area.
The reason for the prices, though, may sound familiar.
“There have been myriad challenges this year, certainly exacerbated by Russia’s invasion of Ukraine,” said Patrick De Haan, Head of Petroleum Analysis, GasBuddy. “Over the last couple of years, we’ve also seen a large decline — about a million barrels a day — in total U.S. refining capacity.”
In other words, GasBuddy petroleum analyst Patrick De Haan tells WMBD’s Craig Collins, demand is higher than supply.
While the Russia situation may be to blame, regulations may also be to blame.
“Diesel had tended to be much cheaper, or cheaper than gasoline, even in the early 2000’s,” said De Haan. “But, really, what ended that was more stringent requirements to clean diesel up — things like a reduction in sulfur content.”
De Haan says he doesn’t think the price will go much more downward, especially as we reach the winter months, and diesel becomes a substitute for natural gas in terms of fuel for heat.
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