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Old 01-07-2015, 06:48 PM   #1
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Cool Petrol prices v diesel price

Hi

Having set my mind on buying a diesel class A, I cannot get my head around the fact that diesel is still 80 to 90 cents more expensive than petrol, yet I am told Diesel is easier and cheaper to refine than Petrol.

Am I wrong, or is there a bigger picture I am not understanding.

regards

Ginner.
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Old 01-07-2015, 07:00 PM   #2
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Less diesel refined from a barrel, world wide demand for diesel high, heating oil usage is still high especially now. So there are lots of factors as to why it higher than gas. Road tax is higher for diesel also.
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Old 01-07-2015, 08:14 PM   #3
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My guess is that the fuel refiners and retailers have collaborated and have calculated the ratio of gas and diesel to sell on the market that provides them the most overall profit.

I too do not understand the dynamics of fuel pricing.

I know one thing though, the retail pricing has dropped substantially slower then the price of crude and I have no doubt in my mind that when crude starts going up the price of fuel will skyrocket quickly.
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Old 01-08-2015, 08:45 AM   #4
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You need to remember that diesel engine provides about a 30% increase in fuel mileage over a gas engine. Especially when the mass of the vehicle is heavier such as a class A motor home or a pick-up truck pulling a 5th wheel trailer. So a diesel engine is still the best engine to use in this application.

Also gas prices will not stay at this current price level indefinitely they are bound to go back up. There was a time last summer (2014) that gas was selling for more than diesel fuel in my area.

Diesel fuel also cost more to refine now than it use to. The refinery need to take extra steps to ensure that the diesel fuel sold today for the modern diesel engine meets the 15 ppm limits of sulfur. Before the modern diesel engines (2007 and up) were sold diesel fuel would be at 500 ppm of sulfur in it. This extra refining to do cost more money.

Another item to understand is the refinery capacity of the US is low compared to the amount of vehicles on the road today. The petroleum industry is a world wide market today and refined products are sold to generate the highest profits in this market place. So the US has become an exporter of refined petroleum products which leads to higher diesel fuel prices; since diesel fuel is more in demand in Europe than the US.

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Old 01-08-2015, 12:20 PM   #5
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petrol prices v diesel price

Gasoline, Diesel and CNG when used as transportation fuel is priced by its BTU content. If you do the math you will find a direct correlation of cost versus BTU's. CNG IS GENERALLY 2/3 the cost for equivalent amount of gasoline because it has 2/3 the amount of energy. Cost of production and distribution is lower but it's selling price is tied to the cost of oil. No breaks for consumers even though we are getting some less expensive fuel for the moment.
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Old 01-08-2015, 01:03 PM   #6
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Another factor is related to supply and demand. Record amounts of diesel fuel that is refined in the U.S. is being exported to Europe in order to satisfy the high global demand. This reduces the supply here, while keeping demand high. By contrast, we do not export gasoline.

Joel
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Old 01-08-2015, 05:29 PM   #7
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Diesel price in Port Charlotte Fl, $2.60 unleaded gas $2.27 so it is getting better
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