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Sunny Battazzi

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Fuel Market Report: July 14th – July 20th, 2024 1024 683 Star Oilco

Fuel Market Report: July 14th – July 20th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Fuel prices fell this past week across the board. Rack averages fell $0.13 for B5 and $0.16 while rack averages for E10 fell $0.04. Presses have continued to fall over the last 3 weeks. This is surprising as crude oil pieces have been relatively low, and fell to $76/barrel over the weekend. The lack of high summer fuel prices has been great for drivers and summer travelers but brings into question why demand is so low.

 

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the first time in nine weeks, at a current price of $76.81/barrel, $4.19 lower than last week, as oil prices trended downward, for the third time in 4 weeks. This is the biggest slump in 9 weeks as oil prices slipped over $4 this past week.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxesa helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $76.81/barrel compared to $81.00/barrel, last week and $83 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Fuel Market Report: July 7th – July 13th, 2024 1024 683 Star Oilco

Fuel Market Report: July 7th – July 13th, 2024

Fuel Market News

The market experienced a mix of price fluctuation this week, as rack averages dropped but retail didn’t budge much. E10 dropped $0.05, B5 dropped $0.10 and B20 dropped $0.02. All the while retail averages fell $0.03. Fuel prices have trended downwards for the past few weeks and are still relatively low compared to prices seen earlier in the year. Demand for B20 has continued to rise with the Portland RFS. All B5 blends within the city of Portland are only dyed blends for off-road usage. Overall the summer has been pretty calm for price jumps thus far.

 

The City of Portland began its fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

 

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading above $80 for the fourth time in eight weeks, at a current price of $81.00/barrel, $1.07 lower than last week, as oil prices trended downward, for the second time in 4 weeks.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $81.00 per barrel compared to $82.07/barrel, last week and $85 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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What Is The Renewable Fuel Standard In Portland? 1024 683 Star Oilco

What Is The Renewable Fuel Standard In Portland?

Did you hear about the time Portland banned fossil fuel diesel?

Portland is making a big move to provide cleaner air and reduce greenhouse gas emissions. Portland has implemented what’s called the Renewable Fuel Standard (RFS) beginning  its first phase on May 15th, 2024. The RFS policy in Portland mandates that there has to be an increase of use of low-carbon biofuels in diesel within city limits of Portland. This is part of the ultimate Climate Emergency plan. This RFS mandate was first implemented in 2006 as a B5 (5%) Biodiesel blend mandate with the goal of mandating a 20% blend. The RFS is the first of its kind not only in Oregon but in the entire United States. Portland’s reputation as a leader in environmental sustainability efforts continues. 

Portland’s Phases To Implement Almost 100% Renewable Diesel

What makes Portland’s mandate unique is the requirement that the biofuels have a CO2 value so low it bars most American made biodiesels. The blending requirement starts at 15% in 2024, and then it will steadily increase to 50% by 2026 and will reach 99% by 2030. This schedule demonstrates how Portland’s low-carbon ambition is present to transition away from fossil fuels and promote alternative energy sources.

This policy is expected to reduce air pollution and carbon emissions. It will also create new markets for biofuels, which will lead to increased economic opportunities. This will ultimately help the city become a more sustainable and environmentally friendly place to live as Portland has taken the lead in striving for sustainability over the years.

The policy will also help create jobs in the biofuel industry and provide opportunities for businesses to switch to renewable energy sources. It will also help reduce the city’s dependence on fossil fuels and protect the environment for future generations.

Want to learn more about meeting Portland’s requirements for the Renewable Fuel Standard mandate?

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Focus on Lower-Emission Biofuels

Uniquely, Portland’s RFS goes beyond just the biofuel blend. It also sets a strict carbon intensity (CI) standard for the biofuels themselves. This ensures the biodiesels used have a significantly lower carbon footprint compared to traditional options. Biodiesels produced domestically often fall short of this CI requirement, prompting many suppliers to look to renewable diesel sources. This focus on biofuels with a lower lifecycle carbon footprint makes Portland’s RFS even more impactful in reducing greenhouse gas emissions.

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Exemptions and Implementation Details

The initial phase of the RFS targets on-road diesel sales. This applies to diesel purchased at gas stations, by mobile fueling companies, and for use in large stationary tanks. However, the long-term goal includes all diesel use within the city. Some temporary exemptions apply to off-road diesel uses such as heating oil, generator fuel, aircraft fuels, watercraft fuels, and other dyed fuel users. One local truck stop, Jubitz Truckstop, was granted a temporary exemption. This is likely due to concerns about disrupting critical transportation operations. Daimler (the manufacturer of Freightliner and Western Star trucks) has a research facility in Portland. Daimler was also granted an exemption to meet their specific fuel needs for testing purposes. 

The RFS enforces compliance through fuel sampling and requires documentation proving the fuel meets the minimum biofuel content and CI standards. Businesses that purchase diesel need to be able to show their compliance through bills of lading (BOLs) or similar records from their fuel provider, like Star Oilco. If a business does not comply and provide this documentation, it can result in pretty hefty fines. First offenses can be a fine of $10,000 per day. Repeat offenders will end up facing even bigger penalties of up to $15,000 per day. These fines can really show the impact of how serious Portland is taking this initiative. 

Impact on Businesses and Consumers

While residential consumers who don’t purchase diesel directly are not directly impacted, businesses purchasing diesel, especially in bulk, will need to adapt to the new regulations. This may involve acquiring documentation from fuel suppliers or entering into contracts guaranteeing compliant fuel blends. Wholesale fuel distributors, who sometimes purchase from multiple vendors and blend fuel mid-route, may face additional challenges in tracking the biofuel content and CI of their product. However, as the program matures, the industry is expected to adapt and streamline these compliance procedures.

Contact Us Today To Discuss What This Means For Your Business

A Step Forward for Cleaner Transportation

Portland’s ambitious RFS sets a new expectation for sustainable transportation. Promoting low-carbon biofuels allows Portland to aim to significantly reduce its reliance on fossil fuels and be able to contribute to cleaner air for its residents. The RFS program will be able to serve as a model for other cities that are looking at implementing similar initiatives. Great job Portland for paving the way to a sustainable future for other cities! Although challenges will remain, as businesses adapt to this new norm, Portland’s RFS represents a significant step forward in creating a more sustainable transportation sector.

The RFS program is an important step in the fight towards sustainability and lower carbon fuels. It sends a clear message that cities are willing to take action to reduce emissions and protect the environment. We anticipate that other cities will follow Portland’s lead and create similar initiatives. This will have a significant impact in reducing emissions and helping to protect the environment.

It is a positive step towards a more sustainable future. Alternative fuels have become more and more readily available. Investing in alternative fuels and reducing carbon emissions is essential for protecting the planet for future generations. Governments should prioritize investing in renewable energy sources and incentivize communities to switch to alternative fuel solutions.

Thank you for choosing Star Oilco as your preferred fuel provider in Portland and Vancouver, Washington. Give us a call to discuss how the RFS mandate can affect your business and one of our team members would be happy to discuss this with you.

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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Fuel Market Report: June 30th – July 6th, 2024 1024 683 Star Oilco

Fuel Market Report: June 30th – July 6th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Diesel prices jumped last week, while gas prices fell. Rack averages for B5 and B20 jumped $0.10/gal while E10 fell $0.04/gal. With the uptick in travel and outdoor activity over the holiday weekend, demand for non-ethanol prem gasoline skyrocketed, while Portland’s fuel supply dwindled to nothing for the high-demand fuel. Despite the allocation issue, prices for E10 fell which is very surprising. Fuel prices are still relatively low for the summer but we can expect prices to climb in the coming weeks.

 

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading above $80 for the fourth time in eight weeks, at a current price of $82.07/barrel, $1.48 lower than last week, as oil prices trended downward, for the first time in 4 weeks.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxesa helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $82.07 per barrel compared to $83.55/barrel, last week and $85 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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June 2024 Fuel Market Recap 1024 697 Star Oilco

June 2024 Fuel Market Recap

June 2024 Fuel Market Recap for Portland, Oregon

The diesel fuel market in the Pacific Northwest in June was characterized by tight supply and high prices. Between a limit in refining capacity, dependence on imports as well as seeing prices rise, it resulted in a month of challenges for Portland, OR and the Pacific Northwest fuel market.  

Refining Capacity

Refineries throughout the region had maintenance and/or experienced operational issues recently, which reduced the overall diesel production. This includes BP’s Cherry Point refinery which appears to be going through a 50-day turnaround and Tesoro’s Anacortes refinery which is having “intermittent flaring.”
 

Dependence on Imports

Due to the limited refining stated above, the region also relied more on imports in recent weeks, which included ultra-low sulfur diesel (ULSD) being shipped in from Canada, which is very rare. Typically, the Pacific Northwest is exporting diesel.
 

High Prices

Limited supply combined with strong regional demand pushed diesel prices to be the most expensive in the country. 

The transportation sector likely experienced several impacts related to an increase in transportation costs. Trucking companies, bus operators and other businesses that are related to diesel fuel happen to face much higher operating costs. This ultimately leads to added surcharges where companies may be implementing fuel surcharges to pass on some of that additional cost increase to their customers. Ultimately, it can result in reduced profit margins for businesses that are unable to pass on the full cost increase. 

In other cases, you’ll see companies start to shift more into alternative fuels. Businesses with the flexibility to be able to use alternative fuels like biodiesel might have increased their usage to mitigate some of the cost increases. It will be interesting to see how the fuel prices as well as the Portland Renewable Fuel Standard (RFS) will affect companies’ choices in fuel. Alternative fuels like biodiesel and renewable diesel have grown tremendously in the Portland and Pacific Northwest and will continue. 

Qualify Your Business With Wholesale Fueling Today.

Industry Insiders Are Talking About A Biofuel Mismatch

Industry insiders are talking about a potential mismatch in biofuel stocks in the Pacific Northwest. Apparently, there’s a surplus of R99, while B99 seems to be harder to come by. The reasons behind this could be anything from swings in the availability of raw materials for each fuel type to shifts in local demand. One thing’s for sure, though: R99 and B99 aren’t exactly created equal, even though they’re both biofuels. R99 seems to be the more reliable and flexible option, but B99 might still hold some appeal in certain situations due to its price tag or specific environmental benefits. This situation could be a chance to fine-tune the biofuel infrastructure in the Pacific Northwest, either by pushing for more R99 use or figuring out ways to get more B99 on the market.

Industry insiders are also keeping a close eye on the recent decline in Renewable Identification Numbers (RINs) and CO2 credits. These tradable certificates serve as a currency for the carbon footprint of fuels. The drop could signal a slowdown in the production or use of cleaner fuels in the region, or conversely, a surge in demand for them. This development could put a strain on refiners trying to meet clean fuel regulations, potentially leading to higher compliance costs. Understanding the root cause of this decline is critical. Is it a regional issue with biofuel production? Or perhaps a broader market trend reflecting increased demand for cleaner fuels? Addressing this situation head-on will be essential for the PNW to maintain its momentum towards its clean energy goals. 

Recent Article From gasprices.aaa.com

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Here is an article from gasprices.aaa.com about the prices of fuel and what they’re doing right before Independence Day. It discusses the national average gas price increasing by five cents to $3.50. The increase has a high probability that it’s due to the cost of oil rising above $80 per barrel. This time of year, we expect a large number of travelers on the roads to celebrate the July 4th holiday week and weekend. Because who wouldn’t want an excuse for extra time off? This will likely increase the demand for fuel. According to gasprices.aaa.com, the most expensive gas in the country is currently in California, which is at $4.80 per gallon. The least expensive, according to gasprices.aaa.com is currently in Mississippi at $2.91 per gallon. What a difference! 

Last year on July 3rd marks a record high price for diesel in the Portland, Oregon area. Today and this week’s current average for diesel in the Portland area is $4.23 per gallon. Reach out to our team about qualifying your business for wholesale fuel pricing.

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Here is a comparison of Diesel prices in Oregon compared to the national average as of July 3rd, 2024. 

Future Forcasting

While it’s hard to determine a future forecast for fuel prices in the coming weeks, what we can see is that fuel prices are down compared to this time last year. This is great! We do however see a price increase in fuel around this time of year due to the significant higher number of travelers on the roads during summer holidays. Some factors that could result in future fuel price fluctuations would be if the global oil market remained stable or not. The war in Ukraine has also had a great impact on crude oil prices. The war has caused uncertainty in the energy market in the past. The sanctions that the US have on Iran have also had a significant impact on crude oil prices. It has been more difficult for Iran to sell its oil, which has driven up prices in other parts of the world. If the global oil market remians stable and no major refinery disruptions occur, then diesel prices throughout Oregon could potentially stay the same or even decrease slightly over the coming weeks. 

 

Thank you for choosing Star Oilco as your preferred fuel provider in the Portland, Oregon and Vancouver, Washington area. We provide fuel market news to raise value and understanding for our customers. Star Oilco loves supporting businesses in the Pacific Northwest and keeping their tanks full. We keep fuel simple. 

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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Fuel Market Report: June 23rd – June 29th, 2024 1024 683 Star Oilco

Fuel Market Report: June 23rd – June 29th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Fuel prices fell this week, as gas and diesel dropped in price on both the wholesale and retail markets. Rack averages for diesel dropped $0.03 for B5 and $0.05 for B20, while E10 gas fell $0.07. With crude oil still above $80/barrel, it is surprising to see fuel prices hovering downward. We can expect prices to begin to climb after the 4th of July weekend with increasing travel trends and demand for fuel. It would be wise to fill up your tanks, cars, boats, or equipment before the holiday weekend pricing spike.

 

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

fuel-market-report-star-oilco-5-18-24

Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading above $80 for the third time in eight weeks, at a current price of $83.55/barrel, $2.24 higher than last week, as oil prices trended upward, for the fourth week in a row.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxesa helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $83.55 per barrel compared to $81.31/barrel, last week and $86 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Fuel Market Report: June 16th – June 22nd, 2024 1024 683 Star Oilco

Fuel Market Report: June 16th – June 22nd, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Fuel prices jumped this week with the wholesale market seeing the biggest jumps as the retail market budged up slightly. The rack average for gasoline in Portland jumped $0.13, while B5 and B20 bumped up $0.10. The retail market saw less price fluctuation as the AAA average in Portland dropped $0.04 for gasoline. Four counties in Oregon had an average gas price below $4 (Baker, Deschutes, Gilliam & Polk) . Oregon is still one of the states with the highest fuel prices in the nation.

Curious to learn more about R80/B20 blends? Book an appointment with one of our low-carbon fuel analysts.

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

fuel-market-report-star-oilco-5-18-24

Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading above $80 for the second time in eight weeks, at a current price of $81.31/barrel, $1.11 higher than last week, as oil prices trended upward, for the third week in a row.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $81.31 per barrel compared to $80.20/barrel, last week and $85 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Understanding The Renewable Fuel Standard In Portland 1024 682 Star Oilco

Understanding The Renewable Fuel Standard In Portland

Diesel Fuel Is Changing In Portland With The Renewable Fuel Standard (RFS)

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Figuring out what this means for you or your business can be challenging. We have shared many questions that we have been asked already, to help provide more clarity on what this Renewable Fuel Standard (RFS) means for Wholesale Purchaser-Consumers. If your question isn’t listed below, please reach out to Star Oilco so we can make sure your questions are answered!

Choose Star Oilco As Your Preferred Fuel Delivery Company

The Renewable Fuel Standard (RFS) is Portland City Counsel’s response to the City’s 2022-2025 Climate Emergency Workplan, which lists the City’s priority actions over the next three years.

On Dec. 7, 2022, City Council unanimously adopted amendments to the Renewable Fuel Standard, Portland City Code Chapter 16.60, which reduces dependence on nonrenewable fossil fuels, by increasing the required percentage of renewable fuels blended with petroleum diesel sold in the city of Portland.

This policy increases low-carbon biofuel blends, moving Portland’s diesel fuel mix to 99% renewable in 2030. This policy includes a carbon intensity standard to shift to fuels that are lower carbon across their entire lifecycle.

Portlands Renewable Fuel Standard Requirements

 Starting July 1, 2024, Portland will require that all diesel fuel sold contain a minimum 15% blend of biodiesel or renewable diesel. This percentage will increase steadily over the next few years, reaching a minimum 99% renewable fuel requirement by July 1, 2030.

There are no reporting requirements for retailers to comply with this mandate. Instead, the city will enforce compliance through random on-site inspections and by requiring retailers to maintain records of the biofuel content of the diesel they sell.

  • The policy speaks to “Covered Entities
  • Diesel Fuel Transaction within the City of Portland Oregon
  • Fuel distributors, resellers, retailers, nonretail dealers, terminals, importers and wholesale purchaser-consumers are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”
  • Wholesale Purchaser-Consumers​: also know as WPCs are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”

Wholesale purchaser-consumer (WPC) is a category of entities that own or utilize diesel vehicle fleets and purchase fuel in bulk for delivery into a storage tank at their facility or directly into a vehicles fuel tank. WPCs are required to register with the RFS program.

A fuel distributor or common carrier delivers on road diesel to your facilities on-site tank such as: 

  • Bulk Tank
  • Aboveground Storage Tank (AST)
  • Underground Storage Tank (UST)

A fuel distributor delivers on road diesel directly into your vehicles also known as:

  • On-Site Fleet Fueling
  • Wet Hose Fueling

Yes, these rules apply to fuel for on-road motor vehicles. Fuels used for the following purposes are not covered by these rules

  1. Railroad locomotives, watercraft, aircraft, and emergency equipment
  2. Dyed diesel for off-road vehicles
  3. Dyed diesel for furnaces, boilers, generators
  4. Propane and liquefied natural gas for vehicles

Wholesale Purchaser-Consumers are required to meet three primary components of the RFS:

  1. Biofuel Minimum Content Requirements,
  2. Carbon Intensity standard,
  3. Selecting a compliance option, and
  4. Record keeping.

Biofuel Minimum Content Requirements for Wholesale Purchaser-Consumers

  • WPCs in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they purchase for their vehicle fleet. Beginning July 1, 2024, all diesel purchased must include 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on July 1, 2026, and 99% on July 1, 2030.
  • The biofuel content requirements will be enforced through random inspections of fleet facilities to see that they (1) have a contract in place with fuel suppliers that specifies that fuel meets the minimum blend requirements, or (2) verification of actual products purchased through testing or review of product transfer documents.
  • All WPCs also need to be aware of the Carbon Intensity Standard in PCC Chapter 16.60.
  • All biodiesel and renewable diesel sold in the City of Portland must have a carbon intensity equal to or less than 40g CO2e/MJ as certified by DEQ’s Clean Fuels Program, Approved Carbon Intensity Values.
  • Carbon intensity requirements apply to biofuel blendstock, not the final blended products, which may contain a portion of petroleum-based diesel fuel at a higher carbon intensity.

Selecting a compliance option for Wholesale Purchaser-Consumers

  • WPCs will need to select a compliance option by the start of the compliance period, July 1, 2024.
  • Portland Bureau of Planning & Sustainability (BPS) will provide notification about selecting compliance options by May 31, 2024.
  • To receive notification, covered entities must be registered with the RFS Program

*Compliance option selection may be changed at any time during the compliance period after consulting with BPS. If a covered entity decides to change the compliance option during the compliance period, they are responsible for compliance under the new option for the full compliance period.

Record Keeping Requirements for Wholesale Purchaser-Consumers

Portland City Code (PCC) Chapter 16.60 and administrative rules requires that an invoice, bill of lading, shipping paper, or other documentation, referred to as “Product Transfer Documents” (PTD) must accompany each fuel delivery in the city of Portland. The administrative rules specify that:

  1. PTDs must include the type of renewable fuel, including biodiesel, renewable diesel, ethanol, or any blends of these fuels, and declare the volume percent of such renewable fuel.
  2. PTDs must comply with OAR 603-027-0430 (1) (a) which includes identifying the quantity, the name of the product, the name and address of the seller and buyer, and the date and time of the sale.
  3. WPCs using the Product Transfer Document compliance pathway must also ensure that fuel pathway codes issued by Oregon Clean Fuels Program are also included on a PTD associated with each delivery received by the WPC or have a contract with a fuel supplier specifying the carbon intensity requirements of PCC Chapter 16.60.

Contact Us Today To Learn More About The RFS For Your Operations

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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Fuel Market Report: June 9th – June 15th, 2024 1024 683 Star Oilco

Fuel Market Report: June 9th – June 15th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Rack averages went up this week, while the retail price at the pump went down. The rack average price jumped $0.08/gal for both B5 & B20 and $0.07/gal for E10 gasoline. Retail prices dropped $0.05/gal for gasoline and $0.04/gal for diesel. As noted in last week’s report, demand for B5 will be diluted by the increased demand for B15 blends of diesel in the City of Portland. This is referenced by Mark Fitz in a recent collaboration with Stillwater Associates. We can expect fuel prices to climb slightly in the coming weeks as we enter the end of June in the full swing of the Summer Season into July.

Curious to learn more about R80/B20 blends? Book an appointment with one of our low-carbon fuel analysts.

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading above $80 for the first time in eight weeks, at a current price of $80.20/barrel, $1.95 higher than last week, as oil prices trended upward, for the second week in a row.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $80.20 per barrel compared to $78.25/barrel, last week and $84 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Every Question About Off-Road Diesel 1024 768 Star Oilco

Every Question About Off-Road Diesel

Got questions about red dyed diesel? We have answers!

If you don’t find the answer you’re looking for, reach out to us directly and we’d be happy to help answer your questions.

Red Diesel is off-road diesel, in the United States this fuel is denoted with a red dye. The dye marks this as fuel for off-road equipment and vehicles and as such it doesn’t have road fuel taxes included in the priceThis dye takes a great deal of clear fuel to dilute so it makes it very obvious if an on-road vehicle has been using off-road untaxed fuel. Tax authorities can and do check for vehicles using off-road red diesel in on-road vehicles. They do this by using a black light to spot any residual presence of dye in the fuel as well as at key places in the engine compartment.

On-road diesel is clear or slightly green. Refineries place a green dye into diesel fuel which is obvious if fuel is freshly dispensed into a bottle to observe its color. As fuel ages this dye fades to yellow or darker colors. Part of a visual observation to inspect diesel fuel quality is to check the fuel for a “bright” appearance with the slight green dye being a giveaway that the diesel is fresh and in good condition.

Nearly all diesel has dye in it. Typically when talking about dyed diesel, we’re referring to a red dye added to off-road diesel. Off-road diesel is normally used for heating oil, construction fueling, agricultural use, and other off-road equipment not used on the highway system where fuel taxes would be required by law.

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Why is diesel dyed?

Diesel is dyed in order to denote if it has paid road tax or not. On-road diesel in the United States usually has a light green tint to it. Off-road diesel has a red dye to denote it has not paid road taxes as required by all states and the Federal government.

What is off-road diesel?

Off-road diesel is diesel fuel dyed red to show it is untaxed and available only for off-road fuel uses such as construction fueling, equipment never used on a public road, agricultural use, heating oil, boiler fuel, and other non-taxed diesel fuel uses under state and Federal fuel tax law. In Oregon, with proper paperwork, some off-road uses can buy on-road fuel with the Oregon state tax exemption.

What is farm diesel?

Farm or diesel for agricultural use is off-road diesel that is not charged on-road fuel taxes. Agricultural use fuel is a tax-exempt use of diesel fuel. If diesel is burned on a farm and can be tracked for such, taxes can be avoided. Farms are allowed to receive clear diesel without road taxes charged on it in Oregon. Often it is dyed red to denote it is tax free. In Oregon, where P.U.C. for trucks over 26,000 GVW pay a weight mile tax instead of a per gallon state road tax, some farms will track their use of clear diesel so they can file for Federal road taxes on off-road usage.

Contact Us Today To Order Your Off-Road Diesel

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All diesel sold in the United States typically has some dye in it. On-road diesel usually has a slight green tint to it. This is a dye added by either the refiner or terminal provider with the fuel. Off road diesels are dyed red to denote that the fuel is untaxed and is for use in off-road purposes only.

Solvent Red 26 and Solvent Red 164 are the allowed dyes prescribed by the United States Internal Revenue Service for marking diesel as for un-taxed off-road use only.

Off-road diesel is classified as a Class II combustible liquid by the National Fire Code. A flammable fuel is one with a flash point below 100 degrees F. Diesel’s flash point is between 126 and 205 degrees F (typically assumed to be about 160 degrees F)That classifies it as a Class II combustible.

Fuel taxes charged is the big difference between the two fuels. All on-road diesel is clear or greenish in color to denote it is both ultra-low sulfur diesel and the on-road fuel taxes associated with using it to power a highway vehicle have been paid. Dyed fuel means that fuel taxes are not paid and that the fuel can not be used to power a vehicle on a public road.

Is off-road diesel or dyed diesel high sulfur diesel?

Dyed diesel (or off-road diesel) can be high sulfur fuel. High sulfur diesel is defined as diesel fuel with over 500 parts per million of sulfur content.

Is off-road diesel or dyed diesel ultra-low sulfur diesel?

Off-road and dyed diesel fuels can be ultra-low sulfur but are not guaranteed to be. There has been a consistent push to reduce sulfur in all fuels in the United States as led by EPA regulation. In recent years, EPA standards require off-road construction and agricultural equipment to have an emissions system that allow ultra-low sulfur to operate without major problems. So today’s off-road diesel being delivered is ultra-low sulfur. If you have a tank with old stored dyed red diesel fuel in it, you can assume it has a higher than ultra-low sulfur content.

What is dyed ULSD fuel?

Dyed ULSD fuel is ultra-low sulfur diesel with a red dye in it to denote that it is for off-road or untaxed purposes only. These purposes are typically for heating oil, construction fuel, agricultural fuel, generator fuel or other off-road uses. The “ULSD” is an acronym for ultra-low sulfur diesel.

Dyed diesel can be either #1 or #2 diesel. Both fuels require a red dye in them to confirm they are untaxed and cannot be used for on road fuels.

Dyed diesel and off-road diesel can be kerosene (which crosses as #1 diesel fuel), but not necessarily. Do not assume a dyed fuel is kerosene, which is a rarer fuel. Kerosene is different than #1 diesel for one characteristic: its confirmed ability to be absorbed and taken up by a wick. All kerosene is #1 dieselNot all #1 diesel fuels are kerosene. The same goes for dyed diesels and off-road fuels. All dyed kerosene is dyed and off-road diesel. Not all dyed fuel is kerosene.

Yes, dyed diesel and off-road diesel are stove oil. Typically a #1 stove oil or #2 stove oil, similar to diesel. Historically stove oils had a slightly different set of specification concerns which is why they were called “stove oils” versus diesel. When petroleum refineries distilled crude oils to get diesel range fuels, it was less exact than it is today with hydrocracking technology. Today with both oil refinery technologies and the EPA emission regulations, the number of distillate range fuel specifications is far more consolidated in order to ensure compliance with EPA and state rules. If your heating appliance is demanding stove oil, it typically needs a #1 stove oil or #1 kerosene product. This product is expected to produce less soot and therefore to work better in a pot stove type of application. The most modern stove oil appliance in the U.S. are Monitor and Toyostove thermostatically controlled direct vent heaters.

Depends on the year of your truck, and we assume you mean red dyed diesel fuelFirst, using dyed diesel, off road diesel, or heating oil in an on-road vehicle is against the lawIf you are caught in Oregon the fine can be as big as $10,000 and the State of Oregon does aggressively pursue this type of tax avoidanceBeyond the legal use of off-road fuelTypically on the west coast dyed diesel is ultra low sulfur diesel. Which means it will not cause maintenance issues if burned in your engine.  Dependent on the age of the dyed fuel, or if it is actually a heating oil, it might be high sulfur or low sulfur fuel. If you use that in a post 2007 engine with a particulate trap it will have serious maintenance issues if you use that fuel.

Yes, dyed diesel and off-road diesel are acceptably used as heating oil. Dyed diesel and off-road diesel these days are typically ultra-low sulfur diesel. Heating oil can be low sulfur or high sulfur in content under EPA and most state laws. So heating oil sometimes cannot be dyed diesel (when used for off-road equipment or agricultural use) but dyed/off-road diesel can always be used for heating oil and conform to the necessary specification required by heating oil furnaces.

Yes! But in today’s ultra-low sulfur market, most off-road diesel is below 15 parts per million. If your equipment requires ultra-low sulfur diesel, it is a good practice to confirm that is what fuel you are getting. Some low sulfur diesel (under 500 parts per million sulfur fuel) and high sulfur diesel (over 500 parts per million sulfur) is still in the marketplace used by heating oil, boiler systems, locomotive, and marine applications.

Off-road diesel gels at cold temperatures. At colder temperatures, wax crystals begin to form and fall out of the diesel, clogging filters and gelling up the fuel. Also, the water and naturally held-in diesel will ice up and obstruct filters. This phenomenon is called diesel gelling.

All diesel fuels will gel if it gets cold enough. Both a formation of wax crystals and ice forming in your fuel will obstruct filters and take your equipment down. Rule of thumb: with no treatment your diesel fuel should operate without any issues above 20 degrees Fahrenheit. Below 20 degrees Fahrenheit, you will want to ensure your vendor is treating the fuel for winter use to ensure it will operate down to -20 degrees FahrenheitIf you are facing temperatures below that, you will want to confirm with your vendor that they are testing that fuel to operate below -20 degrees Fahrenheit.

Why does the government require diesel be dyed red?

From a informational pamphlet from the US IRS on untaxed fuel: 

“The federal government requires dyeing of untaxed diesel fuel and kerosene for two reasons. To help reduce tax evasion by identifying fuel on which excise taxes have not been paid, and to help reduce air pollution by identifying fuel not suitable for use in highway vehicles.”

Does off-road diesel go bad?

Off-road and dyed diesel do age and can go bad. All diesel fuels adhering to ASTM specification should be safe for storage up to a year without additional treatment and testing. If you are storing diesel for long term use, it is a good best practice to treat the fuel with a biocide and oxidative stabilizer to ensure that the fuel stays within specification and nothing will begin to grow in your fuel tank. The biggest enemy of long term diesel storage is water and dirt entering the fuel through a tank vent. As temperatures change a tank will breath pulling in air and moisture from outside. Ensuring there is no water in the tank and that outside contaminants can’t get into a tank are how keep your fuel within specification.

Untreated, you can assume that diesel fuel is good for a year. If treated with a biocide to prevent biological growth from growing in the tank, you can expect diesel to be good for two to three years. After two to three years, diesel begins to show age as it loses its brightness when sampled. After three years you will want to sample and test the fuel to ensure it is within specification for reliable use.

Fuel taxes vary by state and sometimes even local municipality. With off-road diesel, usually the only taxes to consider are sales taxes on the fuel. In Oregon there are no taxes on dyed off-road fuel. In Washington state there are sales taxes for dyed-diesel charged on top of the sale price of the fuel. (NOTE: If you use clear diesel in Washington state there is no sales tax as the road tax is being charged.)  If you are curious for a more in depth answer Star Oilco has a full explanation of Oregon Diesel Taxes (a unique system in the United States for local fuel tax collection of trucks over 26,000 GVW).

Yes. If you are consuming dyed diesel and are not paying for the on-road fuel taxes in Washington state, the sales tax is charged. If you use clear fuel with road taxes attached to the fuel, the sales tax is not charged. For more on Washington fuel taxes see the Washington Department of Revenue. 

Your petroleum distributor has some small taxes (under $.01) attached to the fuel they buy at the wholesale terminal level. Those taxes being the U.S. EPA Superfund cleanup and the “LUST” or Leaking Underground Storage Tank cleanup fund. Beyond that, there are no taxes (Federal, state or local municipality) on fuel used for off-road diesel in Oregon state.

In Oregon you can buy clear fuel exempt of Oregon’s state road taxes. The qualifications for using clear diesel Oregon State tax exempt are the following: 

vehicles issued a valid ODOT Motor Carrier permit or pass (weight receipt) 

vehicles issued a valid Use Fuel User emblem by the ODOT Fuels Tax Group 

vehicles registered to a US government agency, Oregon state agency, Oregon county or city, and displays a valid Oregon “E” plate 

vehicles, or farm tractors/equipment only incidentally operated on the highway as defined in ORS 319.520 

vehicles or equipment that are unlicensed and/or used exclusively on privately owned property 

What happens if I use dyed diesel in an on-road vehicle?

If you get caught in Oregon, a $10,000 a day fine can be levied. We have seen fuel tax cheats get caught repeatedly so be aware Oregon is on the look out for any amount of dye in the saddle tank of an on-road vehicle. If the fuel you use is low sulfur or high sulfur fuel and your vehicle has a particulate trap, you will have maintenance issues with the emission system of your vehicle.

Only if that pickup is dedicated to an off-road use. If you plan to ever use that truck on a public road (even to cross a street), and dyed fuel is found in that vehicle, fines up to $10,000 per occurrence can (and are) levied by state regulators. If you have a closed facility or large farm and are not registering the vehicle for on-road use (so the pickup must not leave the site), you can use off-road diesel as the vehicle’s fuel. If you have license plates and it’s permitted for on-road use, any regulator spotting dyed fuel in that truck will presume it is an on-road pickup.

Typically when checking for illegal use of dyed fuel, regulators will sample from the tank or spin the fuel filter and observe for obvious dyed fuel. If the fuel is clear (or even slightly pink) and they suspect dyed fuel was used in the vehicle, they can apply a special black light that will glow an obvious color denoting dyed fuel had been in contact with the vehicle. They will shine that light on the filter, fuel tanks, and various parts in the engine compartment that would have come into contact with the fuel. If those areas denote even a mild trace of the red-dye used in off-road diesel, they will cite the vehicle operator. There are kits sold online for filtering dye out of fuel to remove the colorThose kits will not remove enough dye to avoid detection by these lights.

Off road diesel is dyed red to show that the on-road fuel taxes are not paid or that it is a tax-free fuelThe Federal Government and State Government’s have fuel taxes for on-road fuel usage to help pay for the roads we all drive onIf you are using diesel for a non-road equipment, machinery, or heating/boiler applications the fuel taxes are exempt and the fuel is dyed to ensure it’s tax free status is immediately seenRegulators in a road side or site level inspection can also shine a black light on specific places in a vehicles system to denote if dyed fuel is being used in violation of the law as well.

In the Pacific Northwest at the current moment? Usually nothing. Heating oil is dyed diesel. Most petroleum distributors are selling the mainstream dyed diesel specification for use as heating oil in order to lower the overall cost of the fuel. There are different ASTM specifications for heating oil and dyed diesel dependent on the state you buy it in. Heating oil’s specification has wider tolerances than diesel specifications as furnaces and boilers can handle dirtier, lower quality fuels than off-road equipment with a particulate trap. Heating oil is always a diesel fuel, but sometimes dyed diesel for off-road equipment has a different specification than heating oil. For example, in Oregon a 5% biodiesel or 5% renewable diesel mandate exists for any dyed diesel fuel used in off-road equipment. This biofuel mandate exempts heating oil and boilers. So heating oil can be biodiesel free but off-road diesel for equipment cannot.

Get Your Off-Road Diesel Delivered Today

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Can refrigerated trailers or “reefers” use dyed diesel even if they are attached to a truck moving it on the highway?

Yes, refrigerated trailers are off-road equipment. The diesel fueled refrigeration trailer is off-road equipment as its engine is not powering something actually driving down the road. These trailers can use any ultra-low sulfur diesel fuel (dyed or clear). If using on-road clear fuel in a refrigerated trailer, if you track and keep proof of the on-road fuel being used in the off-road piece of equipment, you can file for those fuel taxes back. Proof is required though so consult with your CPA or accountant.

The first step is to set up an account with Star Oilco. It’s easy to pay through a simple credit application or by placing a credit card on the account. Oregon and Washington are highly regulated when it comes to fuels such as diesel. We need to account for who is ordering and getting fuel (yes, Oregon even checks sometimes as the DEQ tracks every gallon of diesel moving into the state). Determine if you want a loaner tank onsite or a keep-full service plan. Star Oilco will deliver bulk or wet hose fuel your job site on a regular schedule. We are here to make it as easy as possible for you to focus on your project, not fueling. Let us know what you want: we will keep it simple and make it easy for you.

If you are storing off-road or dyed diesel for longer than six months you will want to make sure it is stabalized. Star Oilco recommends Valvtect Plus Six as the fuel additive you want to useOur recommended fuel additive is a fuel microbiocide with stability additives made for diesel long term storageThis kills and prevents the growth of biological “hum-bugs” in your tankBacteria, yeast, and algae can grow in your fuel tank. Usually in a small amount of water that collects in the bottom of the fuel storage tank (be it the bulk tank you  fuel out of or the saddle tank on your equipment).

There are several ways to do this.  What you will want to do varies based on how much water and what it is in.  If you are dealing with a large bulk fuel tank you want to definitely pump the tank bottom to get the water out.  If you are seeing extreme biological activity (Hum-Bug growing in your tank) you want to do a kill dose treatment on that tank. It might not be a bad idea to also spend a few thousand dollars to have a professional tank cleaning company come in and manually clean the tank prior to adding the kill dose to kill anything growing in your tankIf it’s the tank on your equipment usually the best route is to drain the tank, flush the tank, and also put a kill dose of  a fuel microbiocide to make sure nothing continues to growIf you want to talk to someone feel free to call Star Oilco, you do not need to be our customer for us to walk through some solutions you can do yourself. 

There are a very few rural gas stations that provide this fuel.  Some Pacific Pride or CFN cardlock locations also have pump available for this fuel.  The easiest way to acquire this fuel is through a fuel company.  Star Oilco is one such company that can deliver dyed diesel for it’s customers, or provide cardlock cards for its customers.

Contact Us Today To Get Your Off-Road Diesel Delivered To Your Location

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