By the end of June, refiners were producing more than 2 million barrels per day of ultra low sulfur diesel (ULSD), substantial quantities as a result of new cleaner-burning fuel mandated by the Environmental Protection Agency (EPA), according to the American Petroleum Institute's (API's) monthly statistical report for June.
The transition mandated by the EPA required that by June 1, 2006, 80 percent of the on-road diesel fuel refined or imported must be ULSD. Retail outlets have until October 15 to comply with the rules.
In other statistics, API reported that record high crude oil prices led to lower US refined product demand in the first half of 2006 though the nation imported more gasoline than ever before. Gasoline demand, as measured by API as deliveries out of the primary distribution system of refineries, bulk terminals, and pipelines, declined in the second quarter by 0.4 percent, contrasting with a 0.5 percent increase in the first quarter of the year.