How is Diesel Fuel Made and Who Uses It?
Diesel fuel is the name given for vehicle fuel that is used in compression ignition engines. It gets its? name from Rudolf Diesel, a German engineer who invented this type of fuel. A patent for the original fuel design was registered in 1892.
Diesel engines can use a variety of fuels, including biodiesel, it is refined from crude oil. Diesel fuel is very important to the United States and to countries around the world. Many countries major transport vehicles use diesel fuel and so they are dependent on diesel fuel for commerce and the transportation of goods.
Diesel fuel is made from crude oil and is a distillate. There are different types and grades of distillates. Number 2 is the most commonly used diesel fuel in the United States.
It is used not only to fuel vehicles but also to heat buildings. Delivery trucks, semi-trucks, trains, boats, buses, barges, military vehicles, and farming equipment use diesel fuel. Most of the fuel is used for motor vehicles while around 25% is used for off road equipment and vehicles.
The vast majority of diesel fuel refined in the United States is made in the United States. Only around 5% of it comes from other countries. Refineries in the U.S. manufacture diesel fuel from crude oil that comes from both domesticated and foreign sources. Diesel fuel is sent by pipeline to terminals which are close to populous areas. Tanker trucks then pick up the fuel and deliver it to gas stations.
The retail price of diesel fuel is dependent on various components. These include the process of refinery, the cost of crude oil, the retail station, marketing, distribution and the availability of product from refineries. How much each of these components figure into the price differs from time to time and also based on the situation.
If U.S. refineries experience trouble and states have to depend on outside sources, the price of diesel will increase in these areas. If the price of crude oil goes up, so will the price of diesel fuel. Taxes, whether they are State, Federal or local will also greatly influence the price of diesel. Some states have higher taxes, such as Washington and California, while other states, such as Missouri, have much cheaper state taxes. Federal excise taxes are the same in every state and in 2008, where a little over 24 cents per gallon. The average state excise tax is around 22 cents for every gallon, although some states, such as Washington, which has a 34 cents per gallon tax, is much more expensive. The owners of retail pumps also determine costs. Retail gas stations which are owned by refiners can sell the fuel for cheaper then a reseller can.
Most diesel fuel is refined in the United States. However, American refineries do use crude oil from foreign countries, therefore, diesel engines are still reliant on foreign fuel. The price of diesel fuel will be dependent upon the costs of crude oil, supply and demand and transportation costs.

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