Monday’s report from the U.S. Energy Information Administration was welcome good news, especially at a time when many people typically would anticipate higher gas prices in the run-up to Memorial Day and the start of summer.

As of Monday, diesel fuel cost an average of $4.004 per gallon, a 3% decrease since mid-April, and a 1.4% ($0.057) decrease from the same period last year.

Gasoline prices have also continued to fall, hitting $3.754 per gallon this week, down over 4% since mid-April, and 5.2% ($0.206) from the same period last year.

In New York State, for example, the price of gasoline fell below $4 in every major metropolitan area except in New York City

The one exception to lower fuel prices is on the West Coast, where the EIA reports that the average price for gasoline is up 12 cents per gallon in the past week.  Diesel prices, however, dropped by $0.035 in that period.  The rise has been attributed to problems with several refineries in the region.

While prices may not drop as sharply in the coming weeks, there are signs that lower fuel prices are going to last for the foreseeable future.  Oil prices have fallen amidst concerns that the demand for crude oil will be less than expected for the year.  The price of crude oil fell on Monday and crude prices are down 4% for the year, while gasoline futures dropped 1.4%.

Last week the EIA lowered its forecast for average gas prices to $3.79 per gallon for the summer driving season.  The original estimate was $3.95.

The all-new 3 Series Touring (pictured), known as the Sports Wagon in the U.S., is being launched in Europe with a choice of three engines, two of which are diesel.  The 320d Touring is the entry-leve model and develops 184 hp (135 kW) with its 2-liter diesel engine. To meet the requirements of the upcoming EU6 emissions laws, the 320d can be equipped with BMW BluePerformance technology. BMW promises a fuel usage of 4.7 l/100 km (50 mpg) with the standard fitted six-speed manual transmission.

The BMW 330d Touring has an updated 3.0-liter six-cylinder engine that develops 258 hp (190 kW) and propels the 330d from 0 – 100 km/h (0 – 62 mph) in 5.6 seconds. Fuel usage is only 5.1 l/100 km (46.1 mpg).

A petrol model, the BMW 328i Touring with a four-cylinder, 2.0-liter turbocharged engine,  is also being introduced.

Later in the year, two additional four-cylinder diesels, the BMW 316d Touring and BMW 318d Touring, will be introduced as will an additional gasoline variant, the 320i Touring.  The 316d developes 143 hp and 236 pound-feet of torque; the 318d, 116 hp and 190 pound-feet.

BMW of North America has announced that the 3 Series Sports Wagon will be coming to the United States starting in 2013 but has not announced which powerplants will be available.

1 SERIES AND 3 SERIES GET XDRIVE

BMW is introducing the 114i as the entry-level model in this range.  It develops 102 hp (75 kW) and uses 5.5 l/100 km (42.7 mpg). The 114i will be powered by the same four-cylinder petrol engine with BMW TwinPower Turbo technology found in the 116i.

BMW will also be making its xDrive all-wheel-drive technology available for the first time ever in the 1 Series. The 120d will be the first model which can be ordered with xDrive.

The new 3 Series (code-named F30) is also getting xDrive as an option starting this summer.   It will be available on the BMW 320i, BMW 320d, BMW 328i, and BMW 335i.

While hybrid owners were not quite as emphatic, a clear majority, or 67%, said they would purchase another hybrid while 33% said they would not.

Last month, R.I. Polk issued a report based on new-car registration data that showed that only 35% of hybrid owners purchased another hybrid.  When Polk excluded Prius owners, the number plummeted to 22%.

There are several possible reasons as to why there is such a discrepancy in the percentage of hybrid owners who would or have already bought another hybrid as reported by Polk’s data and The Diesel Driver’s.

Polk’s data does not take into account that the next car might not necessary have been registered in the same name, as could be in the case of family members for example.  Polk also did not poll or survey current hybrid owners and only relied on the registration data.

In addition, the data from The Diesel Driver doesn’t necessarily represent the full spectrum of automobile purchasers.  Most of the diesel and hybrid owners responding to the surveys said they were participants in automotive enthusiast forums.  Most automobile owners do not participate in online forums about their car and brand.  This group may be more predisposed to purchase the same or similar vehicles as compared to the average driver.

Still, the great preponderance to which diesel and hybrid owners said they would in fact purchase another of the same type of car merits further study.

The Diesel Driver’s survey of diesel owners was conducted online from April 13 to May 9.  The survey of hybrid owners was conducted online from April 15 to May 10. The margin of error is plus or minus three percentage points.

86% of those surveyed about buying another diesel were in the U.S. and 8% were in Canada.  85% of those surveyed about buying another hybrid were in the U.S. and 6% were in Canada.

Over the course of the three-day, 1626-mile (2,615.79 km) journey, the Taylors averaged 84.1 miles per gallon (2.8 L/100km). The trip started May 3 in Houston, and covered nine states before ending in Sterling, Virginia.

To simulate real-world conditions, the Taylors brought along 120 pounds (54.43 kg) of luggage, and drove during daylight hours to experience normal traffic scenarios. The couple also did not travel more than 14 hours in a single day.

The vehicle’s 2.0-liter TDI Clean Diesel inline four-cylinder engine produces 140 horsepower, and 236 pound-feet of torque. The Passat has an EPA-estimated 43 mpg (5.47 L/100km) on the highway, and is also equipped with a Selective Catalytic Reduction System (SCR). The 2012 Volkswagen Passat TDI was built at the world’s only LEED Platinum certified automotive factory, in Chattanooga, Tennessee.

The previous record was set by a Volkswagen Passat 1.6 BlueMotion diesel at 1526.6 miles (2,456.82 km).

(Photo: Jonathan Spira)

The 2013 Chevrolet Cruze won’t be Chevrolet’s first diesel-powered passenger sedan in the U.S. but the automaker is clearly hoping you’ll forget about its previous diesel offerings.

While Chevrolet hasn’t released many details on the 2013 Cruze, the automaker has said it will be similar in many respects to the diesel-powered Cruzes it sells in Europe and Australia.  Those models have a turbocharged direct-injection 2.0-liter engine that develops 161 horsepower and 266 pound-feet of torque, a figure that is roughly double what the current petrol-powered Cruze has in the U.S.

Based on available data from other markets, the diesel gets roughly 25% better fuel economy than the gasser.  In Australia, for combined city/highway driving, the diesel Cruze is rated at 42 mpg (5.6 l/100 km) while the 1.4-liter petrol variant was rated at 33.6 mpg (7.0 l/100 km), both with manual transmission.  In highway driving, the Cruze is rated at 53.5 mpg (4.4 l/100 km); the 2012 U.S. Cruze (petrol) gets 42 mpg on the EPA highway test cycle. The ratings are similar in European markets.

Back in the 1980s, Chevrolet offered a wide variety of diesel-powered automobiles (as did other GM divisions including Oldsmobile).  Models included the Chevette, the Caprice, the Impala, and the Monte Carlo.  Engine choices included a 260 cubic-inch CID V-6 and an Oldsmobile-developed 350 cubic-inch V-8.

The Oldsmobile engine in particular suffered from a variety of design problems including head design and head bolts, which were apparently not engineered to withstand the higher cylinder pressures and temperatures generated by diesel engines.  In addition, diesel fuel was of relatively poor quality back in the 1980s and this, combined with the design flaws, led to numerous engine failures.

Using research conducted by Carnegie Mellon University in 2009 and funded by Bosch, the Stuttgart-based company is forecasting that one in ten vehicles including pickup trucks will be diesel powered by the year 2015.  Currently, 3% of the market is comprised of diesel sales.

In other markets, diesel sales comprise half of the market for passenger cars.  In 2011, 49% of cars sold in Germany were diesels as were 51% of those sold in the U.K.

Diesel is becoming more attractive to buyers, the study found, thanks to a greater awareness of better fuel economy, which can be as much as 30%.  With that comes greater driving range between refueling stops: the 2012 Volkswagen Passat TDI can go 800 miles or 1,287 kilometers on a single tankful.

Many believe that driving a diesel is better for the environment, thanks to the extensive emissions plumbing that most modern diesels are equipped with.

Options for diesel-oriented buyers are also increasing.  In addition to Porsche, U.S.-based manufacturers such as Cadillac, Chevrolet, and Chrysler (Jeep) will be offering diesel models in the coming 18 months.

Currently, only the A3 and the Q7 are available as oilburners, but starting in 2013 we will see diesel versions of the A6, A8, and Q5, followed by the next-generation Audi A4 TDI.

Today in the U.S., only four automakers (five if you count Porsche, which will start selling the Cayenne Diesel in September of this year) offer diesels, namely Audi, BMW, Mercedes-Benz, and Volkswagen.  Between the four, they offer a total of 14 models.  More and more automakers are announcing diesels (expect a Volkswagen Beetle diesel before the end of the summer and a Cadillac ATS diesel in 2013).

To better understand Audi’s plans, I sat with Wayne Killen, head of product strategy for Audi, to discuss diesel.  Killen is clearly very enthusiastic when it comes to diesels and I didn’t have to say much to get him started.

Jonathan Spira:     You’re not really using the “hybrid” word here much. Your message is clearly focused on diesel.

Wayne Killen:         Obviously, we have had a great running start with TDI (Turbocharged Direct Injection, Volkswagen Group’s trademark for its turbodiesel engines) and the two models we currently offer, the A3 TDI and the Q7 TDI.    This will grow in 2013 with the addition of the A8 TDI, A6 TDI, and the Q5 TDI.    The Q5 hybrid will be coming in the latter part of next year and it will be our first foray into hybrid, but the strong message is TDI.

JS:      How have sales been?

WK:    We sold over 7000 diesels in 2011, a 6% share.  Obviously that trend will continue.

JS:      Why does Audi think that Americans are more ready for diesel than for hybrid?

WK:    I was just looking at the JD Powers 2011 U.S. Green Automotive Study and it’s fairly bullish on diesel in general. When asked if a buyer would definitely or probably consider a diesel, plug-in, or hybrid for his next car, diesel came in at 31%, plug-in at 35%, and hybrid at 50%.  That’s a strong indication that buyers are raising their hands and see the advantages that these cars have in terms of power and efficiency.

The BMW X5 xDrive30d will tow horse ambulances at equestrian events, and provide on-course support. The MINI Countryman Cooper D will work as a service vehicle at locations such as London Heathrow and the IOC Hotels, and may also transport medical equipment.  The BMW X3 xDrive20d will be used to tow boats that are used in events.

The BMW 320d Efficient Dynamics Edition will be pressed into service as the main command car for the torch relay, as well as the official vehicle for cycling events, and as a shuttle for the games’ technical delegates. The BMW 520d Efficient Dynamics Edition will also be used as a shuttle.

Other BMW vehicles involved in the games will include the BMW 1 Series ActiveE (for transporting athletes and journalists), MINI E, the BMW 5 Series Active Hybrid, and BMW Streetcruiser Bicycles.. BMW’s R1200 RT motorcycle will be a support vehicle (carrying camera crews, for example) for road-based events, such as cycling.

BMW has a history of using alternative-fuel vehicles at the Olympics.  In 1972, for the Olympic Games in Munich, BMW converted a 1602 sports sedan (pictured)  into an electric vehicle that was to travel the length of the marathon, 26.2 miles (42.2 km).

BMW eDrive is essentially the car’s electric drivetrain, comprised of an electric motor, lithium-ion battery, and BMW’s intelligent motor management system.

In 1972, for the Olympic Games in Munich, BMW converted a 1602 sports sedan (pictured below ) into an electric vehicle that was to travel the length of the marathon, 26.2 miles (42.2 km). The car still runs and made an appearance at the 2011 Frankfurt Internationale Automobile Austellung (International Automobile Show).

In 1993, BMW unveiled the E1 test fleet, a two-door, four-passenger city car, and in 2009, the Mini E, based on the Mini Cooper.

More recently, in 2010, the BMW ActiveE, based on the current 1 Series, was unveiled and trials started in early 2012.

BMW is providing a fleet of ActiveE and Mini E electric vehicles for use at the 2012 London Olympics and will be offering the i3 and i8, both from BMW i, starting in 2014.

(Photo: Jonathan Spira)

As of two weeks ago, gasoline prices had increased by almost 20% since the beginning of the year and diesel had increased by 9.5%.

If you currently own or previously owned a  hybrid, please participate in our poll (below).  The results will be published next week.

Voting for this poll has ended. The results may be viewed here.