New Diesel Fuel to Hit U.S. Pumps; May Lead to More Diesel Powered Vehicles

Washington DC October 11, 2006; The AIADA newsletter reported that sulfer diesel fuel will start hitting fuel pumps in the U.S. this month, presenting automakers with the opportunity to expand the use of European diesel technology in vehicles intended for the U.S. market, reports The Wall Street Journal.

Under new regulations, 80 percent of diesel fuel pumped at U.S. retail stations must be the new ultralow-sulfur type, and it will be the only diesel fuel allowed beginning in 2010.

The new diesel contains 97 percent less sulfur than the old version and emits only 15 parts per million of sulfur, compared with 500 parts per million.

Automakers are gearing up new models to try and take advantage of the fuel's arrival. Mercedes-Benz will start selling its diesel-powered E320 Bluetec sedan in 45 states beginning next week. The current model bests the strict federal emissions standard but falls short of the standard in five states. Mercedes says it will offer further Bluetec models that will meet standards in all 50 states as early as 2008.

Volkswagen plans to offer new diesel models in 2008 that will meet emissions standards in all states, while Honda and GM recently announced plans to offer light vehicle diesels in the U.S. over the next two or three years.