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Refiners Expand Diesel Capacity

Publication Date: 1/7/2009
Format: HTML

Dropping demand for gasoline has taken a chunk out of last year’s super-high prices, and refiners are shifting capital expenditures accordingly. Prices for gasoline rose 7.1¢ on Jan. 5 to $1.68 per gallon but were still down 46% overall since a year ago, reports the federal Energy Information Administration. On-highway diesel prices fell 3.6¢, to $2.29, a 32% drop since 2008 and the lowest in years. Despite the winter price rollback for both fuels, diesel is “the growth fuel, globally,” says Allen Schaeffer, executive director of Washington, D.C.-based Diesel Technology Forum. As such, ExxonMobil Corp. and others are boosting output of clean diesel to match projected rising demands.

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