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Old 12-16-2012, 05:35 AM   #1
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Price split Gas vs Diesel

We have just set out from Ontario towards Texas for the winter.
I have never seen the split between Gas and Diesel so high.
In Ontario the price is within a few cents per liter. 1.20/L or about 4.80/Gal
Michigan 3.20 vs 4.20
Ohio 3.00 vs 4.00
Really good for us saved 50 dollars on the first tank compared to last year.

The other plus for us this year is a low of 45' in Minster, OH overnight..Into shorts already.
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Old 12-16-2012, 05:47 AM   #2
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I'll throw 4 reasons for the price spread out for discussion:

1. Federal fuel taxes (and most state fuel taxes) are higher on diesel than on gasoline. This originated with the philosophy that large trucks cause more wear and tear on the roads than lighter cars, so they pay more for the upkeep of the roads.

2. Diesel is in greater worldwide demand than gasoline, so its wholesale price is higher. The U.S. exports diesel to Europe and Asia (some 50% of the cars in Europe are diesel-powered) and imports gasoline which is in lesser demand in these markets from European refineries.

3. ULSD costs significantly more to refine than the old high-sulfur diesel.

4. We're going into the winter heating season where home heating oil competes for the same refinery splits as diesel fuel. Gasoline demand, on the other hand, drops when vacation season is over.

With all that said, our last V-10 powered gasoline fueled truck got 6.5 MPG towing a 13,500 lb GVWR 5th wheel while our current diesel-fueled truck gets 10.5 MPG towing our 16,000 lb GVWR 5th wheel, so even putting the superior towing performance of the diesel aside, diesel fuel is still more economical for us than gasoline.

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Old 12-16-2012, 06:15 AM   #3
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Have fun in Texas. If you liked the cost of gas in Mi and Oh, you're going to live the price in Texas. It's usually 20-30+ cents a gallon less than Michigan.
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Old 12-16-2012, 06:15 AM   #4
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The reason for the price difference is because they (oil companies) can! I don't believe any of the propaganda trying to justify the price difference. Gas prices go up, people stop driving as much, diesel prices go up (or stay up), trucks still have to move goods to market. Pretty much a captive market.
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Old 12-16-2012, 06:23 AM   #5
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The reason for the price difference is because they (oil companies) can!
Well, THAT didn't take long, did it?

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Old 12-16-2012, 08:26 AM   #6
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Well, Rusty, when the fuel prices jump .20 overnight during the Thanksgiving holiday (as they did here) and then take a week and a half to return to "normal", that's not "demand", that's just pure and simple greed. There's no logic to it or explanation other than that.
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Old 12-16-2012, 09:05 AM   #7
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Another reason for the higher diesel prices has to do with some deregulation of the truck or fuel industry. It became easier to pass along the increased fuel costs to consumers. Since then you have not seen the truckers complain as much about increasing fuel costs. They can just pass them right along to the end user. Prior to that, the truckers went ballistic when diesel jumped in price.
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Old 12-16-2012, 09:08 AM   #8
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Down here in Beaumont Texas Gas is 3.02 and Diesel is 3.89.

What part of Texas are ya'll heading to?
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Old 12-16-2012, 09:15 AM   #9
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I think we all see the holiday-inspired spikes in gas prices and it is hard to come u with any rational explanation other than greed. But the ongoing price difference between diesel and gas is pretty much what Rusty describes.

Another factor may be pricing based on energy content. Diesel contains about 15% more energy (btus) than the E10 ethanol sold in nearly all gas stations, so a 15% higher price can be justified on the amount of energy (which translates to miles/gallon) being delivered.
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Old 12-16-2012, 10:05 AM   #10
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I think we all see the holiday-inspired spikes in gas prices and it is hard to come u with any rational explanation other than greed.
I always wonder why raising prices when demand is high is considered greed, and not good business sense. Are we back to saying that there should be a regulation on how much profit a business should make? Or are we advocating price controls and nationalization? As an investor (stockholder), I certainly expect a company to maximize profit.

Our company used to make a product that, for about a decade, was the only game in town. You can bet we priced our product at the highest point possible, and when demand increased, our price went up. At the same time our manufacturing costs dropped when higher volumes allowed us to become more efficient, so profit per item sold increased. I fail to see where that was greed, unless someone is saying our stockholders, my family, recipients of our charitable giving, and taxes paid on the increased profits were too much. If so, who decides what is too much?

It's always easy to blame a big, bad, ogre of a corporation. Do we really want the alternative? Just my $0.02.
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Old 12-16-2012, 10:09 AM   #11
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I may be wrong (and most likely am) but as I see it, a diesel MH costs about twice as much as a gas MH, the fuel averages .85 more a gallon for diesel, the maintenance costs are high with a diesel MH, the towing capacity is usually higher with the DP. Diesels average 9 -10 mpg while gas gets 6 -7 mpg. So unless you need a mansion on wheels, travel in excess of 20,000 miles per year or your towing needs far exceed what a gasser can pull I see it as an unnecessary added expense. I guess I need some convincing.
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Old 12-16-2012, 01:41 PM   #12
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Interested in hearing a response to Gadgets post.

I will eventually buy a MH one day, but wont be a full timer and doubt if we ever see 20,000 per year.

A DP inital cost is a heck of a lot more then a gasser, I just don't see where it would be a break even point for us.

I worked on diesel engines while in the service, and they are work horses, but even if you engine will run 500,000 miles, all of the other items that will break down during that time see to me would be cost prohibitive to break even.
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Old 12-16-2012, 02:31 PM   #13
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Ya know, sometimes a person buys an item because he wants it, and sometimes he buys an item because its the practical thing to do.

If you really want a DP and can afford it, why do you have to justify buying one?
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Old 12-16-2012, 04:11 PM   #14
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Ya know, sometimes a person buys an item because he wants it, and sometimes he buys an item because its the practical thing to do.

If you really want a DP and can afford it, why do you have to justify buying one?

Cause I got too many other toys that are not practical and Momma ain't very happy about that. I bring something else home and can't justify the "need", Momma definitely ain't gonna be happy !!!!
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