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Old 05-17-2008, 05:28 PM   #1
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Maybe I missed something along the way, but does anyone have a explanation why diesel fuel is now more expensive than gasoline? For years diesel fuel was less expensive and now with the latest speculator driven rise in fuel prices it is now more expensive. I thought that refining diesel was less expensive than gasoline so why the switch? Also, I thought I heard that the U.S. is exporting diesel fuel, if this is true, is there a reasonable explanation for this?
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Old 05-17-2008, 05:28 PM   #2
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Maybe I missed something along the way, but does anyone have a explanation why diesel fuel is now more expensive than gasoline? For years diesel fuel was less expensive and now with the latest speculator driven rise in fuel prices it is now more expensive. I thought that refining diesel was less expensive than gasoline so why the switch? Also, I thought I heard that the U.S. is exporting diesel fuel, if this is true, is there a reasonable explanation for this?
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Old 05-18-2008, 05:30 AM   #3
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Hi bigfish,
The cost to make diesel has risen due to going to 15 PPM ULSD fuel. Others may post to add to why diesel is more expensive.
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Old 05-18-2008, 06:17 AM   #4
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Also, the demand for diesel fuel is higher, probably due to many other countries use of it. Diesel is by far the more popular fuel in foreign countries then it is here in the U.S.
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Old 05-18-2008, 08:09 AM   #5
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I Believe that one of the main reasons is because of the limited refining capability in U.S. due to the difficulty of obtaining permits to build new ones.

You see, if the refinery is making diesel fuel, they can't be making gasoline, that raises the cost of diesel at the pump!

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Old 05-18-2008, 11:56 AM   #6
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My opinion tends to be more subjective . . .

Remember when pickup trucks were cheap - well, in comparison to cars, anyway? Once they became so popular, the cost went up.

Same with diesel fuel - it became more popular.
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Old 05-21-2008, 02:58 PM   #7
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Also don't forget there is .06 more Fed tax on diesel than gas.

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Old 05-25-2008, 03:27 PM   #8
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Hi Ho: The price of anything has to do with supply and demand. When I was in college (about 1968) I drove a Mercedes diesel. In those days I paid 17.1 cents/gallon, and gas was about 28-30 cents/gallon. Since then jet aircraft have made a huge demand on the diesel fuel fraction on the distillation column. (FP4 and heating oil and diesel are basically the same thing) I have driven well over a million miles in diesel cars, but now have only gas engines. It just doesn't make sense these days.
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Old 05-25-2008, 03:40 PM   #9
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Just a hunch...we might be burning a little more jet fuel and diesel with the military these days.
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Old 05-25-2008, 03:44 PM   #10
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Dirk Ostermiller:
Hi Ho: The price of anything has to do with supply and demand. When I was in college (about 1968) It just doesn't make sense these days.
Dirk </div></BLOCKQUOTE>
---------------------------------------------------
Yes it does. A diesel will get 30-40% more mileage per gallon thus the cost per mile will be lower even with the existing 79 cent differentialin our area. As an example, two exact Mercedes 320's except engines were measured and the diesel version got 32% more mileage. At today's prices in our area the gas version cost a little over 18 cents per mile while the diesel cost a little over 15 cents.
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Old 05-25-2008, 07:23 PM   #11
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(courtesy of Kirk at escapees.com)diesel fuel pricing That makes sense to me.
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Old 07-27-2008, 05:27 PM   #12
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If the high price of diesel is just a matter of supply & demand, then why is the U.S. exporting diesel. Oil is being imported, refined into diesel, then exported to other countries. If the high price of diesel is just due to supply constrictions, then why export it?
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Old 08-02-2008, 11:20 AM   #13
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I'm sure demand has a lot to do with the price of diesel, however when the EPA demanded that sulphur be removed from diesel, that was when the price really went sky-high. I have heard that refining diesel is now much more costly, thus the excessive price. I have nothing against clean air but it seems to me that it is always overkill with the EPA.
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Old 08-02-2008, 11:53 AM   #14
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Here's the really reason for the high cost of diesel....Cause we the people will pay it! If people didn't buy it then the price would come down. Since you and I both know that ain't happening we are going to be stuck with these high prices, and the oil companies will keep making their profits.
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