Community Forums

bigfish · 05-17-2008, 04:28 PM

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?
BTF

bigfish · 05-17-2008, 04:28 PM

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?
BTF

GaryKD · 05-18-2008, 04:30 AM

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.

Bob (WA0MQE) · 05-18-2008, 05:17 AM

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.

Ed-Sommers · 05-18-2008, 07:09 AM

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!

Ed

SeeTheUSA · 05-18-2008, 10:56 AM

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.

**Petro** · 05-21-2008, 01:58 PM

Also don't forget there is .06 more Fed tax on diesel than gas.

Don

dirko · 05-25-2008, 02:27 PM

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.
Dirk

LLonearth · 05-25-2008, 02:40 PM

Just a hunch...we might be burning a little more jet fuel and diesel with the military these days.

Ecker · 05-25-2008, 02:44 PM

<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>
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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.

Ray,IN · 05-25-2008, 06:23 PM

(courtesy of Kirk at escapees.com)diesel fuel pricing That makes sense to me.

bigfish · 07-27-2008, 04:27 PM

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?
BTF

Lake · 08-02-2008, 10:20 AM

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.

cb5300 · 08-02-2008, 10:53 AM

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.