Can any one explain how or why diesel prices take forever to go up or down as opposed to gas prices. Now that gas is down a bit diesel is still realy high. Dosent it take less refinery to make diesel than gas? and if so then why is costing us more? It's a load of BS if you ask me.
Please explain, Thanks

 

I'd love to know the answer to that question also.I filled up today and the price was $1.02 a liter ,regular unleaded gas was 91.9cents /l I always thought diesel is a less refined fuel and should be .10-.15 a liter cheaper









97' CTD 4x4 K&N KDP Killed

 

This has been hashed over, oh, about 90 times. It'll get moved into the "other" section shorthly.

Trick here is that there are much "tighter" on Fuel Oil than Gas, meaning that there is less supply or inventory in the market this time of year. Think of the Gas prices shooting up to $3.30 a gallon a few months back, we were getting ripped, pure and simple. Diesel barely even moved during that whole mess.

Really wanna give yourself a headache, try to figure out why diesel ever even passed the price of Regular unleaded in the first place?

Why?

 

Couldn’t even begin to tell you. Which is exactly why I decided to buy a hybrid to offset the fuel prices. My last tank was almost 57 MPG. I don’t worry about diesel prices any more. One less thing.

Britt

 

here's one that really has to be PURE GOUGING locally diesel 2.64 kerosene 2.65 are the 2 basicly the same, as far as fuels ? & shouldn't kerosene be much cheaper (no highway use taxes)???

 

One of the reasons is when they refine gas they have more by-products to sell to help off set the price. Diesel is less refined but also has less by products to help offset the price. Don't know that for sure but that is what has been explained to me.

 

here is a kicker, san diego county i am paying $2.53. my mother in flint, michigan told me the price was $3.00. now i know about the winter blend and all but when ever has socal be cheaper on anything than michigan? oil companies showing 9 billion in one quarter tells me we the consumers are getting F- .

david
out of socal

 

Part of the reason the oil companies showing 9 billion in one quarter is due to them consolidating (i.e. - one company buying oiut the other, so total income is higher on the surviving company).

There was a PDF article available on the Chevron site last year that detailed how crude was refined into the various grades of fuel, and it was a really good read. All the distillates come from the same base process, but yield different volumes per barrel of crude, and diesel doesn't yield enough fuel from the basic process to supply the demand, so extra processes are performed on the heavier distillates to "break them up" into lighter grade diesel compounds. Take a look at that article, it is a really good read to understand the fuel production processes.

 

so has diesel demand gone up that much in the last year or so?? until then they were always some how able to produce it cheaper than regular gasoline I have to beleive it's simply gouging

 

Local price = $2.85 gal
40 minutes away (same state, different county) $2.15 gal

 

This is a good example of independent station owner gouging.. shortly after Katrina my local stations were all 30 cents a gallon higher than the truck stop 25 minutes away from the house...guess where I filled up?

 

Diesel demand has increased considerably over the past 5 years, and during this time of year it usually surpasses gasoline in my area due to the heating oil demand in the northern and northeastern states. It is not always production costs that set the price, it is most often supply and demand. The problem I have noticed over the past year or two is that the "day traders" that trade futures bid the prices up, produce nothing, and leave us to pay the bill. When fuel goes up 30% in one week without regard to stockpiles and refining capacity, you can pretty well bet it is the speculators that are driving that. Just an opinion/observation.

 

Yeah, the traders/speculators found out that it's much easier to make money on the energy commodity market than the stock market now.

MikeyB

 

Diesel is a distilate (sp), just like heating oil. Heating oil will be in its' highest demand this winter due to the recent Hurricane activities. Since heating oil is basically the same as diesel (process), they will both be high priced for awhile.

Number 2. When the hurricans ravaged the Gulf Coast, other nations opened up their gasoline to us, but not their diesel or other distillates. This caused the inventory of gasoline to rise and distillates to drop. Figure in laws of supply and demand, and you have your high diesel price.

Get ready for winter-long high diesel prices. Especially if it's REALLY cold in the northeast.

BTW, oil companies aren't corrupt as the media portrays them!!


Kelly

 

Gas prices on the way back up but diesel still holding steady right now.

Filled up last night: 106.297 Gal at $2.239 = $238.00

Good to go for another month......