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Retail prices for diesel are projected to average $2.22 per gallon for 2016 before rising to $2.58 per gallon in 2017, EIA noted.
Subtracting the $1.00-per-gallon tax credit results in a market demand price of $3.15 per gallon. The spot price of Midwest diesel was approximately $2.80 per gallon, indicating a 35Â¢-per-gallon difference in the market demand price for biodiesel and diesel.perating costs other than the cost of feedstock currently average approximately 59Â¢ per gallon. By-products of biodiesel production (glycerin, fatty acids, and filter cakes) provide revenues of perhaps 8Â¢ per gallon.