Diesel Fuel vs. Gas pricing

[X-Hibition]

If discussed to death sorry, but...

Diesel fuel was always less expensive than gas, then it was joined at the hip with unleaded gas pricing at the pump.

What happened to create the 30 to 40 cent higher difference?

 

[bushpilot]

lets see...popularity....and the EPA...LSD and NOW ULSD

 

[Maxtor]

Oil companies..

The oil company execs. came to the conclusion that most of the rigs that run diesel are owned by people that have more money. Prices have always been based on what a person can pay. That is why fuel prices are always highest in locations that pay the people the most. CALIFORNIA... for instance. There has been no correlation between prices and distance from refineries in the 48 states. Diesel costs less to produce than regular gasoline. Anyone that disagrees with this does not know what they are talking about.

 

[X-Hibition]

So no good reason for the difference in price, I'm feeling the love.

 

[powerstrokeguy]

The oil company execs. came to the conclusion that most of the rigs that run diesel are owned by people that have more money. Prices have always been based on what a person can pay. That is why fuel prices are always highest in locations that pay the people the most. CALIFORNIA... for instance. There has been no correlation between prices and distance from refineries in the 48 states. Diesel costs less to produce than regular gasoline. Anyone that disagrees with this does not know what they are talking about.

thats true! diesel is basicly thinned out oil. so it cost much much less than gas, its crap if u ask me! diesel should be 30-40 cents cheaper!! but since more people are driving diesels these days the fuel companies see green! and theres nothin we can do about it!

 

[roosterdiesel]

thats true! diesel is basicly thinned out oil. so it cost much much less than gas, its crap if u ask me! diesel should be 30-40 cents cheaper!! but since more people are driving diesels

Do you think sulfur just extracts itself? Back when diesel didn't have to be as refined maybe you could make that statement.


With more people driving diesels increases demand, increases price. Remember, anything you purchase was at one point or another transported by something that burns diesel.

And before I get flamed, no I don't agree that the oil companies should be making record setting profits.

 

[BamaSixGun]

i dont really know what the reason for the higher cost is, but i do know first hand the effects it has had on my business.

it has made such an impact, that today, i had a driver quit, and instead of lookin for another driver, i have parked it, cancelled the insurance on it, and gonna try to sell it, so i can take care of some credit card debt that i have accumulated tryin to keep my business goin.

so, with 1 less truck on the road, thats one truck i will no longer have to put high dollar fuel in, one less truck driver i will not have to pay, one less truck i wont have to pay insurance on, one less driver that i do not have to pay federal, state, local taxes on each month.

BTW, the truck is paid for, so i got that goin for me at least.

 

[patrickc]

Here in Ontario, Canada the diesel and gas prices are at war with one another. Gas goes up so does diesel gas goes down so does diesel. Currently at the pumps diesel and gas are around 90 cents a litre or $3.40 a us gallon.

 

[drmjf]

My 2cents.
1. when gas supply is low the oil companies crack or split apart the longer oil mocules to make more gas. This drops the amount of diesel available. price goes up more demand less supply.
2. You can't just look at the amount of the profit (oil companies) but the precentage of the profits. oil companies have a appox. 8% profit. The drug companies appox. 15%

The $8,000,000,000 looks big , but they spent $800,000,000,000 to make it.
3. Most small businesses have to make 20-30% just to keep the doors open.

So, that my 2 ok 3 cents

 

[Maxtor]

If you just think back, the price of diesel skyrocketed before the removal of sulpher. There are many more vehicles using gas than diesel. I have a friend that works for a oil company, that has told me that it all stems from greed. Most of you are to young to remember the gas shortages of the early 70's. Most of the oil tanks were packed to the top. I know this because I had a friend that worked for Exxon management at the time. He told me if this shortage did'nt stop, his tanks would overflow. In other words, the shortage was a made up story to raise prices. After the prices were raised he again could sell gasoline. If there is a shortage of gasoline or diesel, it is because the oil companies want it that way to raise the prices to the level they think we will tolerate. The only way we will have a real shortage is if the Arab's decide to stop selling us oil.
Again, all this is common economics. To sell a product for as much as you can.
Removing sulpher in no way justifies the dramatic increase in diesel prices.
Sorry for the soap box, but some of you just have not been around to see how the oil companies have worked for the last 60 years.
Again, they want to make the most money they can, and they have done a very good job of it.