Diesel fuel is cleaning up its act in a transformation designed to reduce emissions up to 95 percent.
Starting Sunday, most diesel sold in the United States will meet new Environmental Protection Agency mandates that limit the sulfur content to 15 parts per million, down from 500 parts per million previously.
The changeover comes with a cost – anywhere from a fraction of a cent to 10 cents a gallon more on top of already expensive prices – but the benefit will be far-reaching clean air improvements, according to environmental and industry organizations.
Even before the new diesel hit the market, preparations for the fuel switch contributed to a big price spike and supply shortage earlier this year in Colorado.
The Rocky Mountain regional average price for diesel rose to a near-record $3.35 a gallon in August, and some truck stops rationed sales after the Suncor refinery in Commerce City diminished its diesel production as it switched refining equipment.
Supplies gradually have been returning to normal, said Suncor marketing executive Steve Douglas, and Colorado’s average diesel price Tuesday had dropped to $2.67 – still 5 cents per gallon higher than the national average.
In Colorado, most diesel already meets the new threshold. Refineries had a June 1 deadline to convert their production, and the cleaner diesel began arriving at retail outlets a few weeks later.
Truckers acknowledge the environmental benefits but bemoan both the higher cost and the reduction in mileage from using so-called ultra-low sulfur fuel because the sulfur-reduction process slightly lowers the fuel’s energy content.
“We’re losing one-tenth to two-tenths miles per gallon. That may not seem like a lot, but it really builds up over time,” said Dino Guadagni, vice president of Denver-based Western Distribution Transportation Co.
The cleaner fuel is more costly for refiners to produce. Wholesale price increases vary regionally, from 10 cents a gallon more for the new diesel around the Gulf Coast to one-half cent a gallon in Denver, according to Suncor’s Douglas.
Suncor’s wholesale price to distributors Tuesday was $1.88 a gallon. The average retail price of $2.67 reflects the wholesale price, plus 44 cents in taxes and 35 cents in expenses and profits for marketers and retailers.
Federal rules require that effective Sunday, 80 percent of all diesel sold must meet the new sulfur limits. Many refiners will continue to make some of the older-style diesel that can be used in train locomotives, farm vehicles, ships and mining equipment until it is phased out from 2010 to 2014.
The new fuel can be used in any diesel engine. Owners of 2007 and later model year diesel vehicles must use the ultra-low sulfur fuel.
In older engines, the new fuel will cut soot emissions by 10 percent. In new diesel vehicles, the fuel will cut emissions by up to 95 percent.
“With the switch to cleaner fuel, consumers will see more fuel-efficient diesel cars, pick-ups and SUVs on showroom floors in the years to come,” said Allen Schaeffer of the Diesel Technology Forum, a diesel advocacy group.
Staff writer Steve Raabe can be reached at 303-954-1948 or at sraabe@denverpost.com.
