Renewables strip lustre from Californian diesel

摘要

California’s boutique Carb diesel grade has fallen to discounts to other US diesel for the frst time as suppliers turn to renewable alternatives. Carb diesel conforms to standards set by the California Air Resources Board (Carb) that are more stringent than those for regular US diesel. Having to meet tighter specifcations means that Carb has traded at a premium to the broader US diesel market — also known in California as EPA diesel, the grade that conforms to federal standards set by the Environmental Protection Agency — since Argus began tracking spot prices in 1993. That all changed in 2020, when Carb prices were 0.3c/USG below EPA diesel on average.