Or it could be the other way around, with gasoline surging close to diesel’ falling price. Never mind, those who opted for a diesel cars and the US truckers can now rejoice, as the gap is finally very slow between the two fuels.
Retail gasoline has fallen massively since last year, but this year the drop has been narrowed by around 25 percent and diesel prices have also plunged by more than a quarter a gallon – now the difference between the two fuels is the narrowest in around six years and could be eliminated within two weeks, says Phil Flynn, senior market analyst at Price Futures Group. “We’re consuming gasoline and exporting it about as fast as they can make it,” he commented. “Given the way gasoline demand has rebounded, I think diesel could be even in the next week or two.” There’s a longstanding relationship between diesel and gasoline prices, with the latter discounted from the former since 2009 – but the difference is now being annihilated by the country’s surprising gasoline demand surge. According to figures compiled by Heathrow, Florida-based motoring club AAA, gasoline retail prices have jumped about 56 cents a gallon since the start of the year to an average of $2.788 a gallon on Monday. Diesel has gone down around 27 cents to $2.857 a gallon, with the average difference of 9 cents this month being the smallest since August 2009.
American motorists are now burning through 9.37 million barrels of gasoline a day, the highest seasonal tally since before the recession that started in 2007. Diesel has fallen out of favor since it surged in popularity back in the late 1970s and early 1980s following the Arab oil embargo, but there are car brands – especially European – that are pushing diesel models in their lineups.