Community Forums

PJRACER · 09-12-2006, 05:23 PM

Why in the world are they getting 40 and 50 cents a gallon more for diesel fuel than regular gas??? I for the life of me can't figure that out. Diesel was always cheaper than regular gas in the past--------and how can the trucking companys and bus companys afford to do what they do??? The logical answer I know---Pass It On ---- But really----they have got to be losing a heap of money in the process. Today the wife and I were heading up the famous highway 19 here in Pinellas County Florida in our little xB Scion -----and wow---gas at $2.35 a gallon----so we pulled in---of course we only needed 8 gallons to fill (still had 3 in the tank) and we will be good until October anyway unless we decide to go a distance in the "BOX". But I hate it when I have to fill my 34 gallon tanks in the truck and the 100 extra tank in the box of the pick-up-----so we won't until the price drops considerably.

PJRACER · 09-12-2006, 05:23 PM

Why in the world are they getting 40 and 50 cents a gallon more for diesel fuel than regular gas??? I for the life of me can't figure that out. Diesel was always cheaper than regular gas in the past--------and how can the trucking companys and bus companys afford to do what they do??? The logical answer I know---Pass It On ---- But really----they have got to be losing a heap of money in the process. Today the wife and I were heading up the famous highway 19 here in Pinellas County Florida in our little xB Scion -----and wow---gas at $2.35 a gallon----so we pulled in---of course we only needed 8 gallons to fill (still had 3 in the tank) and we will be good until October anyway unless we decide to go a distance in the "BOX". But I hate it when I have to fill my 34 gallon tanks in the truck and the 100 extra tank in the box of the pick-up-----so we won't until the price drops considerably.

al koffman · 09-12-2006, 06:27 PM

Why? Because they can

radshooter · 09-13-2006, 03:38 AM

I have heard 2 theories lately.

1) The ever popular "supply-and-demand". We all know how that works.

2) The increase in cost is to offset the added expense of producing ULSD, which will be mandated in all stations by 1/1/06.

Lake · 09-13-2006, 04:02 AM

I have heard (don't know if true or not) that we can thank our wonderful EPA for the higher price of diesel because of their decesion to mandate low sulphur diesel.

PJRACER · 09-13-2006, 04:39 AM

Thanks for the come-back ---- I had forgotten about the LSD ---- and Al ----"because they can" doesn't quite get it>>> must be a retired professor with that explanation.

Hitchhiker · 09-13-2006, 06:08 AM

The ULSD was supposed to only account for a few cents increase per gallon, I heard 3 or 4 cents. Yesterday at my local Walmart, the LSD was 36 cents higher than regular gas and they don't even have the ULSD yet.

I wonder what's up with that?

RustyJC · 09-13-2006, 06:24 AM

The refineries have been running like mad to make gasoline this summer, with the result that inventories have increased. Also, Labor Day weekend marks the end of the summer driving season, so demand for gasoline drops afterwards. These 2 factors, along with a drop in crude oil market prices, have caused gasoline prices to drop like a rock over the last few weeks.

Diesel, on the other hand, does not see a drop in demand in the fall. On the contrary, fall is the harvest season for the farmers, and agricultural diesel demand goes up. The popularity of diesel cars in Europe and the industrial growth of India and China have increased the world demand for diesel fuel more than for gasoline, so diesel prices are holding more stable as compared to gasoline prices. Having said that, diesel in Houston is as low as $2.519 this morning while 93 octane premium unleaded at the Shell station where I filled up the Acura this AM was $2.489.

Rusty

Vette Racer · 09-13-2006, 06:51 AM

I'll take your diesel prices Rusty, ours is still around 2.79 for diesel while unleaded is down to 2.19, go figure! When it gets to a dollar a gallon difference I may have to switch to a gas truck.

Ken Roberts · 09-13-2006, 07:23 AM

Maybe I am way off base and maybe I will get flamed; but, my take on the price difference has zip to do with supply and demand. Some say that demand for gas is down after Labor day and yet prices were falling back in late August. As to supply, wasn't it only last month that the Alaska pipeline had a serious problem that to date has not been fixed?

Personally, I think the whole pricing issue has mega political overtones. Gas users are voters who by far out number diesel users. The independent trucker is a fairly small number. As to UPS, Yellow Freight, Roadway Express, etc. the over the road driver could care less what the cost of diesel is in the tank of his truck as he/she has zip financial interest in the rig. The management that do have the financial responsibility for the costs are limited in numbers.

Lower the cost of gas and the voting populace is appeased. Keep the price of diesel high and the profits of the oil companies remain stable and the stocholders are happy. As we approach the November elections listen to how many incumbents take credit for the lower gas prices and the wanna bees will also be making claim that this will be their # 1 agenda if elected.

It is interesting rhetoric; but, I am predicting that after November 7 the price of gasoline will climb so fast that it will make your head spin. Ken,'04 DSDP....

Paulin · 09-13-2006, 08:16 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Why? Because they can </div></BLOCKQUOTE>

Yea, but only because we let them. IMHO, we should vote out those oil men in office and hold our representatives responsible to maintain reasonable profits without gouging the consumer. We should also support R & D for alternative fuels.

RustyJC · 09-13-2006, 08:25 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Ken Roberts:
Maybe I am way off base and maybe I will get flamed; but, my take on the price difference has zip to do with supply and demand. </div></BLOCKQUOTE>Here's one of the commodities markets where diesel (listed as heating oil) and unleaded gasoline are traded. The prices listed do not include Federal and State taxes, transportation, etc. - NYMEX

At the time I posted this, there was $0.18/gallon difference between unleaded gasoline and diesel, with diesel being higher. This differential is amplified by diesel generally being taxed more heavily than gasoline.

So, yes, the market is driven by supply and demand, weather factors, geopolitical factors (unrest in the Middle East, etc.), just as it is with agricultural and other commodities.

Rusty

GStream40 · 09-13-2006, 08:53 AM

Today in our area the price of Reg. unleaded is $2.179 and the price of diesel is $2.699, just went down from $2.959.

One of the reasons the truckers and their companies don't complain is the "Fuel Surcharge" that they add on to every load and every package that is delivered by companies such as UPS. Since they came up with the Fuel Surcharge, it stopped all the complaints we used to hear about from them.

Ron