Why does diesel cost more
#1
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Why does diesel cost more
Can anyone explain to me why diesel cost more than gasoline? For years diesel was much less expensive until a few years ago they got a wild hair and jacked the price.
bearwhiz
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#4
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1st rule of economics
The value of something is determined by what the populace will pay for it.
They'll just keep jacking up the price until we curtail our use of diesel. That's all there is to it.
We're up at $3.50/gallon out west, highest in the country as far as I can tell.
They'll just keep jacking up the price until we curtail our use of diesel. That's all there is to it.
We're up at $3.50/gallon out west, highest in the country as far as I can tell.
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They're jacking the price of diesel up, so they can bring the cost of gas down In other words, there are more gassers on the road, so the oil companies want to keep them happy. Plus they know many diesel drivers HAVE to pay it to make a living, the trucking industry is really taking a beating.
#6
Originally Posted by Duallydog
I guess they noticed how many viechles un on diesel.
Heck they might just cancel each other out, just like a candy bar and a diet coke!
#7
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Originally Posted by Bearwhiz
Can anyone explain to me why diesel cost more than gasoline?
bearwhiz
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#9
Here is one explanation from the Wall Street Journal:
Diesel Blues
Wall Street Journal editorial
Truck drivers in the Rocky Mountain states have recently been parking their rigs, thanks to a diesel fuel shortage that has forced rationing at stations and raised prices by nearly 40 cents a gallon since early July. Welcome to the latest government-inspired energy mess. Behind the diesel dry-up is yet another federal mandate, an EPA order that 80% of diesel production after June 1 meet new "ultra-low-sulfur" requirements. As federal clean-air rules go, this at least has the advantage of targeting particulates, which can do health damage. But the timing of the rule's imposition is terrible, since refineries, fuel terminals and pipelines haven't been able to make or distribute enough of the new stuff to replace the older product. This is also the height of the agriculture harvest season, when diesel demand is especially high. If this all sounds familiar, recall that Congress's big new ethanol fuel mandate hit just at the start of the summer driving season. That payoff to the Midwest corn lobby requires the nationwide use of 7.5 billion gallons of that corn-based fuel by 2012. With ethanol manufacturers unable to keep pace, and the makers of a rival fuel additive, MTBE, fleeing the market because of liability concerns, drivers were hammered with spot gas shortages and price run-ups nationwide. The refinery industry is still trying to work the kinks out of that one.
Full Story: Page A-14 in today’s WSJ, or online at http://online.wsj.com/article/SB1156...ays_us_opinion
Diesel Blues
Wall Street Journal editorial
Truck drivers in the Rocky Mountain states have recently been parking their rigs, thanks to a diesel fuel shortage that has forced rationing at stations and raised prices by nearly 40 cents a gallon since early July. Welcome to the latest government-inspired energy mess. Behind the diesel dry-up is yet another federal mandate, an EPA order that 80% of diesel production after June 1 meet new "ultra-low-sulfur" requirements. As federal clean-air rules go, this at least has the advantage of targeting particulates, which can do health damage. But the timing of the rule's imposition is terrible, since refineries, fuel terminals and pipelines haven't been able to make or distribute enough of the new stuff to replace the older product. This is also the height of the agriculture harvest season, when diesel demand is especially high. If this all sounds familiar, recall that Congress's big new ethanol fuel mandate hit just at the start of the summer driving season. That payoff to the Midwest corn lobby requires the nationwide use of 7.5 billion gallons of that corn-based fuel by 2012. With ethanol manufacturers unable to keep pace, and the makers of a rival fuel additive, MTBE, fleeing the market because of liability concerns, drivers were hammered with spot gas shortages and price run-ups nationwide. The refinery industry is still trying to work the kinks out of that one.
Full Story: Page A-14 in today’s WSJ, or online at http://online.wsj.com/article/SB1156...ays_us_opinion
#11
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Originally Posted by displacedtexan
Also, a LOT of diesel is consumed by huge boats that ship so much freight, big backup generators, all sorts of equipment.
But I don't mind paying more to be free. Go U.S.A
#12
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Originally Posted by mega-cab-red
Also take into account that the millitary uses a BUNCH of diesel fuel! The turbines on all the tanks and heavy equipment all run on diesel. And we happen to be @war in 2 places. Supply and demand. Basic economics.
But I don't mind paying more to be free. Go U.S.A
But I don't mind paying more to be free. Go U.S.A
The diesel that is consumed on US highways is a drop in the barrell on a worldwide scale.
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Tell me about it!!!!!!!!!!! Thay allways complain that fuel prices are the result of oil prices. Well lets test this shall we? Heating oil (base commodity for diesel), crude, and gasoline have all shed a lot of cost in the trade market the last couple weeks. Hence the reason gas has gone down. Why then hasn't diesel followed suit??????????????????? Explain that one!!!!!!!!!!!!!!!!!!!!!