Written on: April 17, 2023
Does your company rely on diesel fuel? Downey Energy understands your unique needs as a Hudson Valley company, and our commercial fuel division can accommodate them. We’ve been helping local businesses of all sizes succeed for over a century, and we can help your company as well.
Whatever business you’re in, it’s Downey Energy’s business to take care of all your commercial fuel needs. Downey Energy delivers the following fuels in bulk as part of our commercial fuel services:
If your business needs to be set up with fuel pumps and tanks, we can handle that as well. We cater to commercial customers of all kinds. Let us help you take care of business.
Downey offers bulk on-road diesel fuel delivery as part of our fleet fuel services and off-road diesel, which is appropriate for farm equipment et cetera. If your company needs to keep a fleet of diesel vehicles on the road or runs a lot of diesel-powered equipment, Downey Energy is a local company you can trust for bulk diesel delivery. We’ll make sure your cars, trucks, vans, and equipment always have the on-road or off-road diesel they need to keep working for you.
In the past, people considered diesel a less expensive option to gasoline, but that hasn’t been the case for years. According to the U.S. Energy Information Administration, gallon for gallon, on-road diesel has cost more than regular-grade gasoline almost continuously since late 2004. Prior to that diesel tended to cost less than gasoline except during the winter.
Want to know why diesel now costs more than gasoline? There are three main factors at play:
A few years ago, the EPA (Environmental Protection Agency) began to limit the sulfur content of diesel fuel. This was done to decrease toxic emissions. However, there was an associated increase in the costs to produce and distribute the lower sulfur diesel fuel. Additionally, diesel with a lower sulfur content is capable of less fuel economy than diesel with a higher sulfur content. The combination of the rise in production and distribution costs on top of the lower energy density of low sulfur diesel factors into its higher price.
The federal government imposes taxes on the sale of on-road diesel fuel that are higher than the taxes imposed on the sale of gasoline. Each state also imposes its own taxes on the sale of on-road diesel fuel. On average, the state tax applied to on-road diesel is at least 7 cents per gallon higher than the state tax imposed on the sale of gasoline. The precise difference depends on the state you live in. But it’s one reason to use off-road diesel versus on-road diesel whenever you’re legally allowed to. It will save you money.
The domestic and international demand for diesel fuel has increased over the past few years. And diesel fuel is not produced in the same quantity as gasoline. For every barrel of crude oil that’s refined, only about half as much diesel is produced as compared to gasoline. That means diesel is currently in higher demand than it once was but is always in lesser supply compared to gasoline.
Downey Energy is here to provide commercial customers of all kinds with reliable and safe delivery of bulk fuels in New York’s Hudson Valley.
Contact Downey Energy today to find out how we can help your business succeed with our bulk diesel delivery services.