|SAs in the United States, European diesel fuel
consumption has grown because of growth in road freight movements. But in Europe, most of the growth in diesel
fuel has been due to the growth in diesel-fueled light-duty passenger
|- New vehicle
registrations showed new diesel vehicles exceeding 40% of new light-duty
|- This compares
to 1-2% in the United States.
|SIn Europe, tax incentives favoring diesel fuel
over gasoline have existed for a number of years in many countries. Recently, concern over greenhouse gases and
carbon dioxide emissions have resulted in additional diesel fuel tax
|SFurther penetration of diesel-fueled vehicles
is predicted, and as shown in the previous slide, the result could be a drop
in gasoline demand.
|SThis shift from gasoline to diesel has been
occurring over many years, which raises the question of whether refiners are
adjusting their capacity to better match this changing fuel mix, thereby
reducing the amount of excess gasoline available to the United States.