Diesel Priced Almost As Low As Gasoline, As Gas Demand Surges


2014 Ram 1500 EcoDiesel

2014 Ram 1500 EcoDiesel

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The price of diesel fuel in the U.S. has fallen more than 25 cents per gallon this year.

And thanks to high demand for gasoline, the two fuels now cost nearly the same in many states.

The difference in price between gasoline and diesel is now the smallest that it's been in six years.

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Diesel could even fall to the price of gasoline in the coming weeks, reports Bloomberg, as unusually high gasoline consumption continues as the U.S. heads into the heart of the summer driving season.

Average gas prices surged 55 cents per gallon $2.77 last week, AAA data show.

At the same time, diesel was down 27 cents per gallon, to $2.85.

2015 BMW 328d

2015 BMW 328d

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The difference has averaged 9.3 cents per gallon so far this month--reportedly the smallest gap since August 2009.

The shrinking of that price gap isn't just because of cheap diesel; it's being driven by high demand for gasoline.

U.S. refineries are reportedly processing record amounts of crude oil for this time of the year, but gasoline stockpiles have fallen five out of the past seven weeks.

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Supplies are currently at a six-month low.

Drivers are consuming an estimated 9.35 million barrels of gasoline a day--the highest since pre-recession 2007.

Consumption could potentially increase further as the summer driving season continues. Yearly gasoline demand typically peaks around August.

2014 Volkswagen Passat TDI

2014 Volkswagen Passat TDI

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However, the near-parity of gasoline and diesel prices will likely only be temporary.

As refiners increase production to meet this demand, the price gap between gasoline and diesel could widen again.

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The end of the summer and the onset of colder weather will also increase demand for heating oil, a related product that could drive up the price of diesel.

So if you've got a diesel car--or maybe drive a big rig for a living--enjoy these unusual pricing circumstances while they last.

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