When I used to work on base at a diesel engine backup power plant, I used to order diesel by the tanker loads that was commercial delivered from a off base firm. We were getting #2 DL-2 for a bit cheaper than station prices off base. I once asked the billing office regards to cheaper prices and they responded that on base deliveries were exempt from some taxes.
Why does diesel fuel cost more?
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Originally Posted By: Ken2
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Why does diesel fuel cost more?
Because they can get it. It costs many, many millions to convert refinery production to a different product beyond a minor range. Distillate fuel consumption remains high (diesel for trucks, boats, trains, ag, heating oil, jet fuel) while gasoline consumption has flattened out somewhat. Europe exports gasoline to the U.S. and other markets because they produce excess gasoline while they keep up with their diesel fuel needs--the consumption to diesel has shifted faster than the refineries have changed their equipment.
There is only so much diesel you can produce from a barrel of oil. Since most of world's economy runs on diesel and oil supply is tight (peak oil), no wonder diesel bids higher prices. This is why small hybrid gas cars make more sense to me that diesel cars.
Quote:
Why does diesel fuel cost more?
Because they can get it. It costs many, many millions to convert refinery production to a different product beyond a minor range. Distillate fuel consumption remains high (diesel for trucks, boats, trains, ag, heating oil, jet fuel) while gasoline consumption has flattened out somewhat. Europe exports gasoline to the U.S. and other markets because they produce excess gasoline while they keep up with their diesel fuel needs--the consumption to diesel has shifted faster than the refineries have changed their equipment.
There is only so much diesel you can produce from a barrel of oil. Since most of world's economy runs on diesel and oil supply is tight (peak oil), no wonder diesel bids higher prices. This is why small hybrid gas cars make more sense to me that diesel cars.
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Originally Posted By: mechtech2
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
Worldwide demand for diesel is higher than it is for gasoline.
Demand is also probably more price-inelastic.
As gasoline prices rise, we can always drive our cars less, and put more miles on our more economical cars, leaving the thirstier ones to sit.
OTOH, if I'm running an airline, a commercial trucking operation or if I heat my home with oil, I don't have much choice.
Demand is also probably more price-inelastic.
As gasoline prices rise, we can always drive our cars less, and put more miles on our more economical cars, leaving the thirstier ones to sit.
OTOH, if I'm running an airline, a commercial trucking operation or if I heat my home with oil, I don't have much choice.
JHZR2
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Originally Posted By: BobFout
Originally Posted By: mechtech2
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
+1 HDS aint cheap
Originally Posted By: mechtech2
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
+1 HDS aint cheap
Hello,
I am new to the site. I have only been using diesel fuel for three years now, but had the same curiosity regarding price.
I could be paranoid.
Taxes are not established by themselves.
Supply has been manipulated by the Seven Sisters for a century and the auto makers help create demand by the choices of production, limiting fuel economy and energy type, for examples.
GM owned the proprietary rights to the process which put lead into gasoline, hence the oil industry auto industry direct connection. They GM received a royalty for every gallon poured! They called for and manipulated the hearings, but ultimately agreed to phase out lead (stop putting it in to counteract pinging/knocking).
OPEC is like the wizard of oz to me. People that can't grow their own food don't run the world.
This is all conjecture, of course.
Diesel is more efficient and costs less to produce.
If the cost is lower, the energy density greater and fuel economy greater, and the diesel engine lasts longer, then every vehicle owner would opt for diesel.
That would equal less profits for both automobile manufacturers and for oil companies.
That is not allowed here.
Mitchellray
I am new to the site. I have only been using diesel fuel for three years now, but had the same curiosity regarding price.
I could be paranoid.
Taxes are not established by themselves.
Supply has been manipulated by the Seven Sisters for a century and the auto makers help create demand by the choices of production, limiting fuel economy and energy type, for examples.
GM owned the proprietary rights to the process which put lead into gasoline, hence the oil industry auto industry direct connection. They GM received a royalty for every gallon poured! They called for and manipulated the hearings, but ultimately agreed to phase out lead (stop putting it in to counteract pinging/knocking).
OPEC is like the wizard of oz to me. People that can't grow their own food don't run the world.
This is all conjecture, of course.
Diesel is more efficient and costs less to produce.
If the cost is lower, the energy density greater and fuel economy greater, and the diesel engine lasts longer, then every vehicle owner would opt for diesel.
That would equal less profits for both automobile manufacturers and for oil companies.
That is not allowed here.
Mitchellray
Up here, diesel tends to be cheaper than gas. Right now, diesel has been creeping up while gasoline has been creeping down. Like anywhere else, winter demand hits diesel (heating, etc.). The factors fdcg27 mentioned are important, too. If gas goes high, I can keep my F-150 parked and drive something cheaper, or bike, or walk, or take public transit. Commercial truckers don't have a lot of choice.
Originally Posted By: BobFout
Originally Posted By: mechtech2
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
And still less than gasoline to produce.
Originally Posted By: mechtech2
My uncle was a chemist for Standard Oil.
Diesel fuel is EASIER to make, and costs less. [less refined]
Demand , greed, and taxes pushed priced up high.
Remember, everything you see has once been on a truck! [not flora and fauna]
Unless he retired more recently, the HSD to LSD (500 ppm) change in the early 90s and LSD to ULSD (15 ppm) in 2006/2007 means there's a lot more refinement now.
And still less than gasoline to produce.
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