WASHINGTON – With diesel fuel prices dipping to the lowest levels since 2009, the U.S. vehicle market is primed for potential market increases as several new 2016 clean diesel cars and pickup trucks prepare to hit showrooms in the coming months, according to the Diesel Technology Forum (DTF).
Last week, AAA’s Daily Fuel Gauge Report indicated that diesel fuel was cheaper than regular gasoline in 21 states and significantly cheaper than Midgrade and Premium gasoline. Today, California is the state with the largest gap as diesel is 70 cents cheaper per gallon than regular gasoline.
“The major decreases in diesel prices have emerged at a perfect time for drivers as almost 20 new clean diesel cars and pickup trucks are preparing to enter the U.S. market,” said Allen Schaeffer, DTF executive director. “And when you combine the lower cost of diesel fuel along with its 20 to 40% higher fuel efficiency than gasoline, clean diesel vehicles make more economic sense for buyers than ever.”
DTF further highlights what they say are the economic benefits of clean diesel vehicles, noting that a University of Michigan study released earlier this month “found that the total cost of ownership—depreciation, fuel costs, repairs, maintenance, insurance, and fees and taxes—is often much less for diesel vehicles as compared to gasoline versions of the same vehicles, mostly ranging from $2,000 to $7,000 over three-to-five years.”
According to research commissioned by DTF, diesel cars and pickups are expected to make up about 7% of the market by 2020. “Low diesel fuel prices that come in under already-low gasoline prices are sure the send signals to interested car and truck buyers to consider the diesel option,” Schaeffer said. “More new clean diesel cars and trucks will help improve air quality, reduce carbon emissions and promote energy independence.”
For in-depth research on the perceived effect of fuel prices on vehicle purchasing, read the just-released Fuels Institute report, “Fuel Prices and Auto Sales: A Five-Year Perspective.”