The economic viability of fuels shift.
I had a flashback today from 1990, when diesel was cheaper than gas. The economics of higher mileage from running a diesel engine has been undercut by a fuel surcharge over gasoline for some time.
The Rutters on Richland Ave. in York posted $2.89 for both regular and diesel. The Hess in West York is selling diesel for 5 cents less than gasoline. Diesel fuel prices overall are lower than a year ago.
Another interesting development is the price of ethanol. Ethanol blend sold for $2.49 a gallon at Tom's Longstown on Wednesday. Government subsidies have promoted more production of ethanol this year bringing down the price from a year ago. msnbc.com
If the trend of diesel remains at the same price as gasoline, it will provide direct competition for gas/electric hybrids when used with new clean burning diesel technology. While the overall emissions from a hybrid might be cleaner, the long-term viability of a diesel powered car with a simpler drivetrain, promises a car that may be cheaper to run when it approaches high mileage and have a lower initial cost. Clean small diesel engines are already in use world-wide, just not in the United States.
To make ethanol blend more attractive to consumers the price had to come down. Mileage is lower when using E85 in a flex fuel-vehicle instead of straight gasoline, so a cost surcharge to gasoline, plus lower mileage was a double deterrent for it's use.
List of cars that are E58 compatible.
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp
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