Economist says reduced gasoline use will negatively impact farmers – Voice Of Muscatine

An economist with CoBank says the trend towards reduced gasoline use will have an impact on farmers and the transportation sector. 

Teri Viswanath

Teri Viswanath tells Brownfield as people transition to electric and more efficient gasoline vehicles, less gasoline will be produced and, “43% of the refining yield is gasoline, 28% is distillate and that includes diesel, so if you don’t need the gasoline, you may not be producing enough diesel over the long run.”

Viswanath says only 28% of a barrel of crude oil ends up as diesel fuel and heating oil, so reducing gas production would likely lead to higher diesel prices, and ramping up biodiesel production might not be the answer.

…