Vehicle trends sustain Europe’s shift to diesel

04/03/2006
Diesel’s strengthening domination of the European fuel market is a well-established trend quite likely to continue.The reason, says the International Energy Agency in its March Monthly Oil Market Report, is rapid replacement of gasoline vehicles by diesel counterparts.IEA projects that during 2005-11 European diesel demand will increase by 600,000-700,000 b/d while gasoline demand falls by 300,000-400,000 b/d.Some of that shift comes from continuation of well-established forces, such as tax differentials favoring diesel, diesel’s superior fuel efficiency, and recent improvement in diesel engine performance.As sales of diesel passenger vehicles zoom for these reasons, old gasol...
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