A look at what impacts the fuel’s costs
We all know that life is full of change as well as ebbs and flows. Hardly anything stays the same! This definitely holds true for the price of diesel fuel, which can go up and down on a somewhat regular basis.
Why diesel fuel prices fluctuate
The prices of many things that we buy and spend money on change and fluctuate. This applies to the groceries we buy, certain services we take advantage of and public transportation costs. The price of diesel fuel falls into this category as well.
Diesel fuel prices are impacted by multiple factors including global demand, supply, production costs, taxes and government regulations. Let’s dive further into each one of these:
- Production costs: There is a whole process when it comes to producing and making diesel fuel and that comes along with refining, transportation, labor and distribution costs. When these costs go up, the price of diesel fuel goes up as well.
- Large demand: When demand for diesel fuel (or any product really) is high, prices tend to increase. When demand is lower and a product is less needed, prices usually drop.
- Regulations and added taxes: There all sorts of environmental and safety regulations that are associated with diesel fuel. Therefore, when the diesel fuel industry becomes more expensive to regulate, the price of the fuel itself will increase. Any changes in taxes will also directly impact the fuel’s price as well.
- How accessible the fuel is: When there is a diesel fuel shortage and it becomes harder to find, people can get away with charging more for the product.
- The cost of crude oil: Diesel fuel is made through a process of refining crude oil. Therefore, the cost of diesel fuel is directly impacted by the cost of crude oil.
More to know about diesel fuel
There are two very common types of diesel fuel that are widely available:
- On-road diesel fuel: Your traditional trucks, trailers and other vehicles that drive on an open road typically fill up on on-road diesel fuel, which can usually be found at your local gas station. Since it is not dyed it is also sometimes referred to as clear diesel fuel.
- Off-road diesel fuel: Off-road diesel fuel is often used for tractors, earthmovers or traditional construction vehicles. Generators can be powered by off-road diesel fuel as well. Unlike on-road diesel fuel, off-road diesel fuel is made with a red dye. This is done intentionally to help people from using this kind of fuel in the wrong type of engine.
Diesel fuel from Jennings Oil & Propane
No matter what kind of diesel fuel you need, Jennings Oil & Propane can get it to you. We deliver bulk orders of both on-road diesel fuel and off-road diesel fuel all throughout Danbury, Connecticut as well as to certain areas of Fairfield, Litchfield and New Haven counties. Diesel fuel services from Jennings Oil & Propane are reliable and our prices are competitive. In fact, local commercial businesses have been up and running thanks to our diesel fuel for over 80 years.
Contact Jennings Oil & Propane today to partner with us on all your diesel fuel needs.