|SThe reason for diesel-fuel demand growth has
been the result of a shift by car buyers from gasoline to diesel-fueled
vehicles. Diesel-fueled vehicles are
about 35% more efficient than gasoline-fueled vehicles, which helps Europe to
reduce its transportation fuel demand.
|SUsing various tax and purchase incentives,
Europe’s diesel-fueled vehicle sales have seen a rapid penetration in recent
years. European new car registrations
went from just over 20% in the mid 1990’s to almost half of the new car sales
|–New vehicle registrations showed new
diesel-fueled vehicles at almost 50%
of new light-duty vehicles in 2004.
|–This compares to 1-2% in the United States.
|SHowever, the shift from gasoline to diesel has
been occurring over many years, which set the stage for the recent surge over
the last seven years.