Factors Affecting Diesel Fuel Prices

| Total Words: 550

With diesel fuel prices stabling a bit, there are still looming concerns about its future. This makes sense. If the record-high price of diesel happened before it will likely to happen again. But why diesel fuel prices went so high?

If you are going to conduct a survey, many would say that it is the greed of oil companies that drove fuel prices including gas and diesel to record highs in July. While everyone is free to speculate, it is always proper to steer away from opinions and look on hard facts.

Many do not realize that weather and seasons affect the demand for fuel. For example, during summer, many families drive their vehicles for vacation. One or two families cannot affect the price of diesel but summer vacations happen globally. This increases the demand for oil and drives the prices up. Winter is no different. While most people living in cold areas choose to stay at home, they use heating systems which draw energy from heating oil. Heating oil tends to set the prices of diesel so when the demand for heating oil is up, diesel prices are also up.

Another factor that affects the fuel prices is the demand. Demand drives the prices of any commodity up...

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