After years of trying to reduce gasoline production in favor of diesel, U.S. refiners are once again relying on America’s favorite motor fuel to drive profits.

Gasoline is the best-performing member of the Bloomberg Commodity Index this year. Demand is the highest since 2007 as Americans drove the most miles ever over the first five months of 2015. The price at the pump is 24 percent less than a year ago, thanks to a global oil rout.

“We certainly expected some price demand elasticity for gasoline,” Gary Simmons, senior vice president for Valero Energy Corp., said on a conference Thursday. “As long as we see the lower prices I think we expect the demand response to continue to be good.”

Valero, the second-biggest U.S. independent refiner, said Thursday it’s maximizing gasoline production as it posted its best quarterly results since 2007. The fuel is averaging almost 23 cents over diesel this quarter, the most in 8 years.

The pivot to gasoline comes as the shale boom has brought a flood of light crude that yields more gasoline components, and after the company spent $3 billion building two hydrocrackers in 2013 to boost diesel production.

Valero’s $2.66-a-share profit beat a $2.42 average of 18 analyst estimates. The refiner’s gasoline yield was over 48 percent in the quarter. Two other refiners that announced earnings Thursday, PBF Energy Inc. and Marathon Petroleum Corp., both missed estimates. They turn about 45 percent of each barrel of crude into gasoline.

“Every time we try to predict the future and what’s going to happen, events overtake us,” PBF Chairman Tom O’Malley said on a conference call Thursday. “We have much less expensive gasoline here in the U.S. as a result of these low crude oil prices. That’s going to continue to add to the importance of gasoline, which had somehow faded a little bit, and I think to maintain refining margins.”

Phillips 66, the largest U.S. refinery by market capitalization, releases its earnings Friday.

Source: www.bloomberg.com

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