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Old 11-27-2011, 08:32 AM   #1
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Diesel Fuel Prices

I have been checking the diesel prices going south on the interstates compared to the regular gas prices. In New Jersey the prices of regular are down to $3.06 a gallon yet the diesel prices are anywhere from 3.70 and up to as much as $4.05 going south. Whats wrong with that picture? Seems like no one cares anymore about the gas prices its surprising the truckers do not voice any opinions about it. Maybe I am not looking in the right places seems like we have been complacent kind of like sheep.
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Old 11-27-2011, 08:59 AM   #2
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We are in Marathon, Florida Keys and there is a Mobil just up the road at $4.12 for diesel. The cheapest in town is $3.99. The closer to Key West, the higher the fuel prices. We always try to fill up before going onto the Keys.

Back to the topic. Yes something is wrong with the difference in price between gasoline and diesel. I don't know how some of the trucking firms remain in business. Is it true that diesel is actually cheaper to refine? If so it is obvious we are being gouged and there doesn't seem to be anything we can go about it.
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Old 11-27-2011, 09:06 AM   #3
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Same in Nebraska, gas $3.06 diesel $3.99. WHY?
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Old 11-27-2011, 09:11 AM   #4
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I believe the majority of OTR trucks are owned by large fleet companies. They negotiate their price with the national brands and do not pay the advertised price. RVs and independent truckers are stuck with the high prices. Some relief is available with the Pilot/Flying J Frequent Fueler Advantage Card and/or a 5% rebate program offered by PenFed Visa Platinum Cash Rewards card. Unfortunately, Pilot/Flying J do not necessarily offer the best prices. You may see large fleet trucks parked at independent truck stops but they probably are not buying diesel. The PenFed Visa is about your best bet although there are other credit card companies that offer similar programs.

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Old 11-27-2011, 09:15 AM   #5
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1. Taxes - federal and most state fuel taxes are higher on diesel than on gasoline. Part of this is because gasoline is a "consumer" fuel (i.e., the voters are more sensitive to gasoline prices) while diesel is a "commercial/industrial" fuel, and the other part is because diesel is used by larger, heavier vehicles that (in the government bureaucrats' perception) cause more road damage than gasoline vehicles; therefore, the diesel vehicles pay more road use tax.

2. Demand - on the world market, diesel is more in demand than gasoline, primarily due to the fact that Europe promotes diesel-powered cars (some 50% of European cars are diesel-powered) and emerging economies in China, India and other countries require diesel for construction equipment, trucks and power generation. Also, as winter approaches, heating oil demand drives diesel prices upward.

3. Refining costs - the old spread between gasoline and diesel doesn't apply with the advent of ultra low sulphur diesel (ULSD - 15 ppm sulphur) which is much more costly to refine than the old 500 ppm diesel.

What many consumers don't understand is that tankers are moving back and forth from America to Europe bringing gasoline from European refiners to the U.S. market and returning to Europe loaded with diesel fuel. Like it or not, we operate in a worldwide economy.

Rusty
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Old 11-27-2011, 10:06 AM   #6
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Quote:
Originally Posted by Pairajays View Post
I believe the majority of OTR trucks are owned by large fleet companies. They negotiate their price with the national brands and do not pay the advertised price. RVs and independent truckers are stuck with the high prices. Some relief is available with the Pilot/Flying J Frequent Fueler Advantage Card and/or a 5% rebate program offered by PenFed Visa Platinum Cash Rewards card. Unfortunately, Pilot/Flying J do not necessarily offer the best prices. You may see large fleet trucks parked at independent truck stops but they probably are not buying diesel. The PenFed Visa is about your best bet although there are other credit card companies that offer similar programs.

Jim E
????????????? The big companies get fuel just like everyone else. They pay the same road tax just like you do but a LOT more because they use the roads more. EVERY truck on the road MUST pay a road tax for every mile driven in any state whether they buy fuel in that state or not. We on the otherhand can shop and buy fuel at the states where it is cheaper! Is this "shopping" another form of tax evasion? I have driven trucks and owned trucks and have logged over 5 million accident free paid miles, I have a slight understanding how this works. Be glad you have the freedom to pick and choose.
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Old 11-27-2011, 10:15 AM   #7
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It always goes up in the fall. Partly due to winter fuel and heating season so demand is up imo.
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Old 11-27-2011, 10:21 AM   #8
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What many consumers don't understand is that tankers are moving back and forth from America to Europe bringing gasoline from European refiners to the U.S. market and returning to Europe loaded with diesel fuel. Like it or not, we operate in a worldwide economy.

Rusty
You hit the nail on the head!

We're shipping diesel to other countries and making it harder to come by domestically. That drives the price up.
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Old 11-27-2011, 10:32 AM   #9
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Be honest and consider the impact of our devalued dollar which is the currency oil is traded in. As we lose value in our money due to real world inflation, the price of all fuels increase. And yes, the seasonal heating oil market has an impact too.
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Old 11-27-2011, 11:40 AM   #10
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Originally Posted by RustyJC View Post
1. Taxes - federal and most state fuel taxes are higher on diesel than on gasoline. Part of this is because gasoline is a "consumer" fuel (i.e., the voters are more sensitive to gasoline prices) while diesel is a "commercial/industrial" fuel, and the other part is because diesel is used by larger, heavier vehicles that (in the government bureaucrats' perception) cause more road damage than gasoline vehicles; therefore, the diesel vehicles pay more road use tax.

2. Demand - on the world market, diesel is more in demand than gasoline, primarily due to the fact that Europe promotes diesel-powered cars (some 50% of European cars are diesel-powered) and emerging economies in China, India and other countries require diesel for construction equipment, trucks and power generation. Also, as winter approaches, heating oil demand drives diesel prices upward.

3. Refining costs - the old spread between gasoline and diesel doesn't apply with the advent of ultra low sulphur diesel (ULSD - 15 ppm sulphur) which is much more costly to refine than the old 500 ppm diesel.

What many consumers don't understand is that tankers are moving back and forth from America to Europe bringing gasoline from European refiners to the U.S. market and returning to Europe loaded with diesel fuel. Like it or not, we operate in a worldwide economy.

Rusty
Rusty, as a retired energy economist for EIA, I have to applaud you for one of the most clearly written (and correct) explanations of this issue I've ever seen. And yet many forum members still won't get it, and the oil-company-haters and conspiracy theorists will thunder on ...
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Old 11-27-2011, 12:08 PM   #11
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Eliminate the fuel surcharge for long haul truckers and then see what direction the diesel prices go.
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Old 11-27-2011, 05:41 PM   #12
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In Oregon OTR trucks pay less per gallon than other users. The state gets their money another way, a PUC. In Arizona, private vehicles, ie, cars, small trucks and RVs pay less for Diesel than OTR trucks. There are probably other states that are different I just don't know of any.

Jim E
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Old 11-27-2011, 06:39 PM   #13
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Just our of curiosity, how much is "much more costly".
I admit the information I have is old but the refining cost was suppose to be about $.05 higher per gallon with about $.015 for distribution costs.
Does that sound out of range?
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Old 11-27-2011, 07:10 PM   #14
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Gas in Mansfield Ohio is $2.98
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