Fuel study predicts US diesel demand to peak in 2015

  • Fuel study predicts US diesel demand to peak in 2015

    A new research study performed by PIRA Energy Group, commissioned by the Fuels Institute, concludes that while global demand for diesel fuel will continue to grow to 2030, the US demand for diesel will peak in 2015 and decrease from 2016 to 2030.

    The research study, “An Assessment of the Diesel Fuel Market: Demand, Supply, Trade and Key Drivers”, concludes that US diesel fuel demand will decrease from 4 million barrels per day in mid 2015 to 3.5 million barrels per day in 2030, a decrease of 12.5%.

    The demand for diesel fuel in the US light-duty vehicle fleet will triple in size as more diesel vehicles are on the road. But demand will be tempered by increased fuel mileage, hybrids, plug-in hybrids, and electric vehicles.

    The demand for diesel fuel in the US heavy-duty vehicle segment will decrease, according to the report. Natural gas and improved fuel mileage will cause the decrease.

    What does this mean from a fuel price management perspective? Based on your customer profile at each of your locations, you may see changes in demand for diesel at specific locations, higher in some, lower in others. There may be opportunities for product differentiation in locations where diesel is selling to more vehicles on the street and the competition doesn’t offer that fuel type. As other stores stop selling diesel, there may be opportunities for strong margins in areas where your store provides the only source of diesel. As always, it’s one more area to monitor volume sales and margins gained at individual locations, market segments, and the company as a whole.

    Comments are closed.