Diesel Fuel Costs.....Where are they Going!?!?!

 

The average price for a gallon of diesel fuel here in New England is $4.13 per gallon. Sure diesel fuel prices has had its ups and downs, but not until a few weeks ago when the price broke the $4.00 per gallon mark did it make such a big impression on me.

 

Why are the prices so high? For a few reasons:

• Worldwide demand, especially in China.
• Cost for transitioning to Ultra Low Sulphur Diesel. Removing sulphur removes lubricating qualities from the fuel. Therefore, costly lubricating additives must be mixed with the fuel to maintain quality.
• The excise tax on diesel fuel is $.06 higher than that of regular gasoline.

My point, for this post, is even if the price of diesel fuel stays at approximately one dollar more a gallon than regular fuel, owning and driving a diesel car (2008 VW Jetta TDI) still costs less per mile to drive. Some quick Math for comparison:

 

Gasoline Toyota Corolla with a 15 gallon tank- approx. 30 mpg combined city/highway

Regular Gasoline $3.27 X 15 gallon tank = $49.05 for a fill up.

Tank Trip Miles 15gallons X 30mpg = 450 Miles

Cost per Mile $49.05 / 450 Miles = $.109 per mile 

 

Diesel VW Jetta with a 15 gallon tank - approx. 50 mpg combines city/highway

Diesel Fuel $4.13 X 15 gallon tank = $61.95

Tank Trip Miles 15 gallons X 50mpg = 750 Miles

Cost per Mile $61.95 / 750 Miles = $.083 per mile

 

Even though filling up a 15 gallon diesel tank costs more, the overall cost per mile is almost $.03 less or almost 28% more economical.