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Diesel Fuel Price Factors

Written on: March 18, 2024

Understanding the Variables

diesel fuel Worcester, MA Diesel fuel, a vital energy source for transportation and industry, experiences price fluctuations influenced by various factors. Let’s delve into the key variables that impact diesel fuel prices.

Crude Oil Costs

The cost of crude oil constitutes the largest component in retail diesel prices. Approximately 50% of the monthly average U.S. on-highway diesel fuel prices stem from crude oil expenses. Global demand and supply dynamics significantly affect crude oil prices.

Refining and Distribution

Refineries process crude oil into diesel fuel. The refining process, along with distribution and marketing, contributes to the final price. Refineries’ operational costs, maintenance, and efficiency play a role. Additionally, transportation and delivery expenses impact the retail price.

Geopolitical Instability

Global geopolitical events can disrupt oil production and supply chains. Conflicts, sanctions, or political tensions in oil-producing regions influence diesel prices. Any instability affecting major oil exporters can cause price volatility.

Weather Patterns

Extreme weather conditions like the ones we experience here in Worcester, MA (especially during the winter) impact diesel prices. Snowstorms, floods, and other natural disasters can all disrupt oil production, refining, and transportation. Severe weather events also affect supply and may lead to temporary price spikes.

Taxes and Regulations

Local, state, and federal taxes significantly contribute to diesel prices. Tax rates vary by region, affecting the final cost at the pump. Additionally, environmental regulations may influence refining processes and costs. This is one area in which on-road and off-road diesel are different. Off-road diesel is not subject to taxes.

Regional Variations

Diesel prices vary based on location. Factors such as overhead costs, real estate expenses, and local taxes differ across regions. High-volume truck stops catering to commercial vehicles often offer lower prices than smaller service stations.

Understanding these factors can help you navigate the complexities of diesel fuel pricing. Whether you’re a trucker, a business owner, or a consumer, staying informed about these influences can empower better decision-making.

Remember, the next time you fill up your tank, it’s not just about the fuel—it’s about a global network of economic, environmental, and geopolitical forces shaping the price you pay.

Choose Brideau

If you rely on diesel fuel, then you should make Brideau Energy your diesel fuel supplier. Our family-owned business has faithfully served our customers since 1987. And we’re proud of our ability to offer exceptionally competitive pricing on the diesel fuel you need.

If you have a business in Central Massachusetts or Southern New Hampshire, your business can depend on Brideau Energy for top-quality diesel fuel. We provide on-site deliveries for off-road construction equipment (usually Monday through Friday from 7 a.m. to 4 p.m.). We also tend to schedule our fleet fuel deliveries for late afternoons and evenings—after your trucks are done for the day. That saves you time and money. For your convenience, we’ll deliver your fuel when and where you need it.

Brideau Energy has the resources to fuel a commercial fleet of any size with our computerized metering and printout systems. We also have a card-operated system on Route 68 in Templeton that’s available 24 hours a day.

Quality Fuel

Brideau Energy provides our customers with top-quality diesel fuel. The low-sulfur clear on-road diesel we supply will help to extend the lives of the engines in your fleet. We also sell low-sulfur off-road diesel that’s colored red to make it easily distinguishable from on-road diesel (which is taxed).

Choose Brideau Energy

As a family-owned, top-quality fuel company, Brideau Energy has earned the loyalty of hundreds of businesses in Central Massachusetts and Southern New Hampshire.

Contact Brideau Energy today to learn about diesel fuel delivery and how we can make a difference for your business.