Diesel Prices Destined to Increase

Todd Mouw, President

The NTEA Work Truck Show, which is the largest commercial truck event in the country, just finished up. It’s clear that the message of reduced complexity, decreased emissions and much lower total cost of ownership with propane autogas is resonating.

One of the trends that fleet decision makers continue to worry about is the unpredictability of diesel prices. For example, in January of 2020, the marine industry will be forced to reduce the sulfur content of the diesel fuel they consume — meaning they will draw from the same supply of ultra-low sulfur diesel (ULSD) that our on-road fleets do. The Energy Information Administration has published an update to its short-term energy outlook, which you can find here. This emerging story will drive diesel costs up and create even more uncertainty in the market.

That’s why relying on a domestically produced fuel becomes even more important. More than 90 percent of the United States propane autogas supply is produced domestically, with an additional 7 percent from Canada. Almost 75 percent of propane used in the U.S. comes from natural gas refining, and the remaining comes from petroleum during the refining process. Our nation has an abundance which will drive price stability for many years to come. In fact, the U.S. exports propane. In 2017, the United States — the world’s largest exporter of propane — exported 905,000 barrels per day.

Fueling with American-made propane autogas helps the nation’s energy security goals, reduces harmful emissions and will drive a significant reduction in a fleet’s cost per mile.

To learn more about ROUSH CleanTech’s alternative-fuel vehicle technology that powers school buses and Ford commercial vehicles, please visit roushcleantech.com.