ShinerBock wrote:
FishOnOne wrote:
ShinerBock wrote:
what I was getting at was how much it will go up due to the new regulation just like the switch to USLD increased costs.
How much will it go up with this change?
Not sure, but I would imagine it would be similar how much the switch from LSD to ULSD increased the costs for us. The refineries that make this current fuel will have to upgraded for the added hydrotreating process needed to remove the sulphar down to acceptable levels. This will go in to the cost per gallon until the capital is recouped.
Then there is the loss the refiners will take when the pump the ULSD through pipes and tanks that carried LSD contaminating it with higher than acceptable levels. This is fuel would probably be sold as loss. The other issue is the added corrosion that ULSD has on tanks and pipes due to its higher water solubility.
Lastly are the extra additives to bring back the lubricity of the fuel. All these things will cause the price per gallon to increase, but I am not sure how much.
The reason I asked was because your statement sound like you knew precisely how much it was going to go up.
Again I don't subscribe that this change will have a significant impact.
