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  (Source: blogspot.com)
VW wants more incentives

Volkswagen AG (VW) wants diesel vehicles to get federal and state incentives similar to those for electric vehicles (EVs). Instead, the automaker feels diesels are "penalized." 

“We’re not feeling the love,” said Anna Schneider, vice president for industry and government relations at VW Group of America. “This is one of the greenest choices... It’s time the U.S. government included clean diesel in its ‘all of the above’ strategy’ for greening U.S. roads. Putting these vehicles on the road should be incentivized and not penalized, and that’s our goal.”

Diesels are about 30 percent more fuel efficient than gasoline vehicles, but the problem is that diesels have a higher carbon content than the gasoline-powered cars. For that reason, the U.S. Environmental Protection Agency (EPA) said that diesels only cut carbon emissions by 7 to 20 percent.

Hence, diesels don't get the same treatment as EVs. EVs receive many advantages, such as federal and state tax credits, access to carpool lanes, etc. This is because EVs are seen as key contributors to "greening" the auto industry, and that's especially important right now with the new 54.5 MPG CAFE standards in place for 2017-2025 model years. 

In fact, these new standards don't give diesels additional credits the way it does other vehicles. The EPA said it doesn’t believe diesel vehicles push the commercialization of technologies that will help autos reach zero (or even near-zero) emissions. In addition, the EPA doesn't seem to think that diesels have an issue with "consumer acceptance."

Further hurting the cause of diesels is that 15 U.S. states place additional taxes on diesel, and federal taxes for diesels are 6 cents higher than those of gasoline-powered autos. 

EVs, on the other hand, are eligible for a $7,500 federal tax credit. 

VW is a known promoter of diesel vehicles. For instance, the company confirmed its XL1 hybrid for production earlier this year. The two-seat Volkswagen XL1 has a plug-in diesel hybrid system that allows it to achieve 314 MPG and 31 miles on electric power alone. The CO2 emissions sits at 21 g/km, and it is considered the most aerodynamic car with a Cd figure of 0.189. It's also very light at just 1,752 pounds.


Source: The Detroit News



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RE: Whole 6 cents?
By Monkey's Uncle on 8/22/2013 6:31:37 PM , Rating: 3
Diesel and gasoline are commodities. When demand is high and supply low, prices rise. When demand is low and supply is high, prices fall.

Public buying is fickle. Gasoline is a much more dynamic market since there is a higher public demand on it. Diesel is used mostly in commerce and industry which is usually has rpetty steady requirements. Thus you don't see diesel prices fluctuate quite so widely as gasoline.

When Diesels become more popular in North America, you will see Diesel prices behaving more and more like gasoline. You will also see prices rise higher than gasoline as higher demand on Diesel starts overtaking gasoline and gasoline becomes less popular (resulting in higher supplies in that need to be stored).


RE: Whole 6 cents?
By JediJeb on 8/23/2013 4:03:30 PM , Rating: 2
quote:
Diesel and gasoline are commodities. When demand is high and supply low, prices rise. When demand is low and supply is high, prices fall.


The only problem with that is that the oil producers like to tweak supply so that it is always in line with demand so that prices stay high.


RE: Whole 6 cents?
By Monkey's Uncle on 8/23/2013 4:42:32 PM , Rating: 2
You can only tweak supply just so much before you have undesired consequences.

When you consider that both gasoline and diesel from the same barrel of crude, attempting to reduce the supply of gas will also have an undesired effect of reducing the supply of diesel. They are tightly interrelated. Yes, refiners can tweak the amounts of each produced during crude distillation, but the fact is that they are both produced at the same time. So if you want to reduce the supply of gas, but not diesel, what do you do with the gas that will be produced anyway? Selling it would be the smart thing to do and to sell it, you will need to price it lower to attract demand.

Economics 101.


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