ULSD coming soon?

I stand corrected on the LSD. My info was 4 years out of date! I still do not understand what will happen in April. Will the imported fuel be sold at similar prices as today due to taxes? I cannot see Mexico giving up that income. Perhaps the only change will be non Pemex locations and small variances in prices between stations. I notice that some of the Pemex's have large electronic signs with all the prices. I did read that some Mexico refineries have been closed for major modifications due to changes in the production of Diesel. . Here is an article that I must have missed in the fall of 14. If they followed through with this project is the refinery online?
ULSD NEWS

Moisheh

Many homes in the northeast US heat with oil - in Maine the heating oil is virtually identical* to diesel fuel and it's sulfur content is 50ppm. In 2018 Maine's heating oil will be ULSD.
In Maine our off-road diesel has been ULSD for at least 5 years - we had to install a 2nd tank rather than burn heating oil in our equipment.
Wherever the 50ppm heating oil comes from it is still being produced.

* physically the same but not taxed for road use. using heating oil (it's always dyed) in a motor vehicle can cost ten of thousands of dollars in fines if caught.

Doubtful the vendors will set aside a tank just for RVers who desire ULSD. IF they buy diesel and it is ULSD, it will be mixed into the same old tank they use for diesel.
What vendor with multiple stations would spend money to appease a couple hundred people? Business wise, it just does not make any sense to think anything much is going to change until Federal Government regulations demand such a change.
And, an article today in Mexico papers said that not to expect the price to change from what it currently is selling at. THAT is not what this is about.

I am trying to find logic in all of this. I cannot find a wholesale price for diesel from Pemex. But in the US Gulf States diesel wholesales for under $1.00 a gallon. If costs from Pemex are higher and retailers in Mexico can now import why would they keep buying from Pemex if they can afford to transport. If these new associations of retailers in Mexico use their buying power to buy from the US at lower prices than they can from Pemex and they can only buy ULSD then why would they not buy it? And once they run a few loads through their tanks it will all be ULSD anyway. But that is all theoretical until more solid info becomes available. At this point it is all speculation. How much does Mexico tax the fuel? What does Pemex sell to retailers for? How much will Mexico tax imported fuel? Seems like we just find more and more questions for which the answers will only be found as time goes by.

I keep searching and searching for more info. It costs about 10 cents per gallon more to produce ULSD than LSD in the US according to what I found. But as far as I can find US refineries only produce ULSD for highway use. The only use for LSD I can find is heating oil. But most refineries converted all their equipment to produce ULSD. I can't find any in the US that still produce LSD. The US has now become a major world exporter of diesel fuel. More than half the vehicles in Europe run on diesel and they need ULSD. Can anyone find a refinery in the US that produces LSD? I can't.

Offroad or dyed diesel in the USA is ULSD.

LSD is still available in the USA. It is not at any truck stops. Must be an industrial or off road use. I dont think the Mexican truckers with old Dinas would be happy with ULSD. Some of the injection pumps do not like ULSD. There will be a day when Mexico lives up to it's promises and requires the vehicle mfrs. to have the pollution equipment that does need ULSD. Don't know if I will live that long!


Moisheh

Moisheh

Doubtful the vendors will set aside a tank just for RVers who desire ULSD. IF they buy diesel and it is ULSD, it will be mixed into the same old tank they use for diesel.
What vendor with multiple stations would spend money to appease a couple hundred people? Business wise, it just does not make any sense to think anything much is going to change until Federal Government regulations demand such a change.
And, an article today in Mexico papers said that not to expect the price to change from what it currently is selling at. THAT is not what this is about.

I suspect they will bring in ULSD just because it will be cheaper to do so.at least as long as oi lprices remain down.

I found a few websites that might give some idea of what wholesale ULSD sells for in the US - not sure what this means either. I can't find a source for wholesale Pemex. Looks like ULSD in USA is below $1.00 a gallon - before transportation and taxes.


http://www.indexmundi.com/commodities/?commodity=diesel


https://ycharts.com/indicators/diesel_spot_price


http://www.barchart.com/commodityfutures/Gulf_Coast_Ultra_Low_Sulfur_Diesel_(ULSD)_Swap_(Platts)_Futures/JLY

I have no idea how this works - but I have questions.....

Diesel in the US now can cost as low as $1/70 - found in TX on Gas Buddy recently - could be cheaper elsewhere.

I do not know if LSD is still produced in the US since most vehicles now require ULSD.

We recently paid $13.77MX per liter for diesel in Mexico.

By the recent exchange rate a peso is worth about 0.055 cents US.

So a liter is costs about .76 US.

3.78 liter per gallon so about $2.86US per gallon.

What is the wholesale price of US diesel as opposed to MX diesel?

If the big franchisees in MX can buy ULSD from the US for less than they can from Pemex would they be allowed to buy from the US? Seems that is what is going to happen April 1.

You may have noticed signs going up on many Pemex stations saying G500 Grupo Gasolineria or something similar. This is an association of franchisees which now includes between 800 to 1,000 Pemex stations. There is a website that explains more about fuel prices in Mexico and about G500. They will be able to buy fuel from suppliers other than Pemex but the price at the pump will still be set by the treasury of Mexico. There will be a high and low price and they can set their pump price somewhere between the high and low. What G500 will be able to do is use there immense buying power to purchase and transport at low cost. I did not see anything about ULSD but if they can buy for less in the US maybe they would just buy for the best price. If only ULSD is produced in the US then that could be what G500 will have. I have no idea. As stated by others above - there is no reason for Mexico to have ULSD as it is not required by vehicles purchased in Mexico - trucks in Mexico still use LSD. But does the US still produce LSD? Why would they since it is not used in the US? But if there was demand for LSD from Mexico and LSD is cheaper to produce than ULSD would refineries in the US produce LSD just for the Mexican market? Lots of questions.

Here are a couple of websites where some searching can be done to try to learn more.

https://g500.mx/

http://www.dineroenimagen.com/2015-10-28/63719


I used Google Translate to enable reading of these websites.