1. Attention: We have put together a thread with tips and a tutorial video to help with using the new software. Please take a moment to check out the thread here: Trapshooters.com Tutorial & Help Video.
    Dismiss Notice

Why is diesel so expensive?

Discussion in 'Off Topic Threads' started by Pocatello, Nov 13, 2011.

Thread Status:
Not open for further replies.
  1. Pocatello

    Pocatello Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,547
    I remember when diesel was always cheaper than gas. Even more recently, it was usually about the same price as premium. Now diesel is $0.75 - $0.90 per gallon more expensive than regular unleaded. It makes the additional mileage for diesel vehicles meaningless economically. What gives?
     
  2. Dougbbbb

    Dougbbbb TS Supporters TS Supporters

    Joined:
    Jun 16, 2010
    Messages:
    1,059
    Location:
    NJ
    Higher demand in China and Europe plus the transition to low sulfer diesel and a higher Federal excise tax.

    Doug
     
  3. Voolfie

    Voolfie Member

    Joined:
    Jun 4, 2008
    Messages:
    466
    Location:
    Wilmington, DE
    I've wondered about that myself for years. I mean, isn't Diesel LESS refined than gasoline? Shouldn't it be cheaper? -V
     
  4. TOOLMAKER 251

    TOOLMAKER 251 Active Member

    Joined:
    Jan 29, 1998
    Messages:
    3,398
    I just got done discussing this on another forum. I filled up yesterday for $3.95 up from $3.77 2 weeks ago. Diesel in my area usually sells around $.10 a gallon more then high test gas, but now it's selling for about $.40 more. Crude is selling for $100-115 depending where it comes from. When Iran gets whacked in the near future I guess crude will go to $150+
     
  5. HSLDS

    HSLDS Well-Known Member

    Joined:
    Nov 2, 2006
    Messages:
    6,335
    Location:
    S-E PA
    The answer is in the chemistry...

    Owing to how fuels are manufactured there is a nearly two to one ratio of gasoline to diesel from the same gallon of crude.

    Historically diesel was a 'waste' product from the refining of gasoline and was almost given away in that there was little demand. With the advent of 'cracking' the waste diesel could be converted into the desired gasoline and demand and supply started to equalize.

    With the increased number of trucks, buses, etc. and a move towards diesel cars (especially in Europe) the demand for diesel has increased - even sky rocketed.

    Despite the 'advantage' of higher mileage in diesel vehicles the real cost per gallon is in the production from refining. Gasoline has around eight carbon molecules where diesel has roughly double that, hence when 'cracked' one gallon of diesel is turned into two gallons of gasoline. With that in mind re-do the cost analysis and you will see that diesel isn't the great bargin everyone is taught to think it is.

    As a by product of gasoline production diesel is a good, cheap fuel, but when you refine it further (at a higher cost) it gives quite a bit of gasoline.
     
  6. timberfaller

    timberfaller Well-Known Member

    Joined:
    Feb 24, 2007
    Messages:
    7,946
    Location:
    Eastern Washington
    Because of "demand" more diesel powered rigs on the road.

    And the Oil company's know it and charge accordingly.

    Our liberal state has a high road tax on it, which help rip off the public.

    Growing up in around gas stations and bulkplants, WE the PEOPLE are getting ripped off. Back when there was diesel 1 and diesel 2 the refinery process that made the products, diesel and gas, YOU get twice as much diesel out of a barrel of crude then you get "regular" gas.

    Do the math.

    When my dad had his bulkplant, diesel WAS half the cost,at the pump and delivered then GAS!!!!!!

    At todays prices that would be: one gallon of Unlead Regular at $3.79 = Diesel at $1.895

    If all the pickups were just "gas" powered, thats the price diesel would be at.

    Now you know how they get such High profits, besides just the "future" market scam.
     
  7. TOOLMAKER 251

    TOOLMAKER 251 Active Member

    Joined:
    Jan 29, 1998
    Messages:
    3,398
    I was just looking at a gasoline vs crude oil price chart from 2001 to present. It's broken down to what a gallon of crude sells for vs a gallon of gasoline, from 2001 to about 2004 gas would sell for 50 cents more then the crude. After 2004 it started to rapidly increase to around 75 cents then by 2010-2011 the difference went to $1.50 per gallon more then the cost of a gallon of crude.
     
  8. lots of 24's

    lots of 24's Member

    Joined:
    Jan 29, 1998
    Messages:
    288
    Because they have it. And you need it.
     
  9. OldPshtr

    OldPshtr Member

    Joined:
    Jan 29, 1998
    Messages:
    447
    Think may have something to do with supply and demand.
    Count the ratio of trucks to autos on the freeways.
     
  10. burtona

    burtona Member

    Joined:
    Jan 28, 2011
    Messages:
    172
    Government (EPA) regulation to remove the sulpher has driven up the Diesel production cost making it more expensive to produce than gasoline.
     
  11. Uncle Sam

    Uncle Sam Member

    Joined:
    Jan 6, 2006
    Messages:
    887
    It's more expensive because the states and Feds tax the living heck out of it!!!!!!.........Uncle Sam, Pa.
     
  12. Rick in Ohio

    Rick in Ohio Member

    Joined:
    Apr 27, 2009
    Messages:
    839
    Location:
    Columbus, OH
    Count the number of big trucks on the roads now day.... that's why!
     
  13. oz

    oz Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,817
    the stock market sets the prices so they can get rich. if the great lakes were filled with oil we would still be importing and still paying way too much. oz
     
  14. shot410ga

    shot410ga Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    7,759
    Let's not forget the profit... Gas stations make their money on gallons of gas sold per month. A good highly profitable gas station will sell at least 350,000 gallons of gas per month. The diesel they sell is gravy to most dealers. I know many will say thats crazy. But, I spent 20 years in the petroleum business, and saw the numbers all the time.
     
  15. John Galt

    John Galt TS Member

    Joined:
    Jun 12, 2011
    Messages:
    2,788
    Only a looney leftist could say something as idiotic as "the stock market sets the prices so they can get rich". It has been decades since diesel was cheaper than gasoline so get used to it. The two products are not interchangeable so have little to do with each other other than being refined from oil.

    The reason diesel costs what it does is supply and demand plus higher taxes. It has nothing to do with the price of gasoline or any other product. The demand for deisel is far less elastic than that of gasoline which leads to higher prices. The bottom line is that we set the price and if nobody would pay more than $1.00 for it then that would be the price. Of course, there wouldn't be any for sale since nobody would produce it for a loss.
     
  16. Rooksd1

    Rooksd1 Member

    Joined:
    Jan 29, 1998
    Messages:
    125
    Most independent truckers with 1-25 trucks have been put out of business, and the big freight company's profit from high diesel prices via the surcharge that goes up but never comes down. I just got a 1600 dollar freight bill and the fuel surcharge was 384.08. Why would they complain. We figured the total fuel cost for the delivery was 232.00.
     
  17. bh

    bh TS Member

    Joined:
    Jan 29, 1998
    Messages:
    27
    Burtona has it correct!! Several years ago the EPA mandated less sulphur which required two refinings for Diesel that is why it costs more than gas which only is refined one time!
     
  18. TOOLMAKER 251

    TOOLMAKER 251 Active Member

    Joined:
    Jan 29, 1998
    Messages:
    3,398
    If you reread the original post he is asking why diesel has jumped much higher then highest gas in just a matter of a few weeks, ULSD has been out for 3 years now nothing new. Diesel has gone up disproportionate to gas in such a short time. Does the demand for home heating fuel (red dyed diesel) play a part in demand since the northeast is a major area for diesel?
     
  19. Catpower

    Catpower Molon Labe TS Supporters

    Joined:
    Jan 29, 1998
    Messages:
    10,229
    Location:
    In the Cabana
    They try to blame the spike on diesel this time of year, every year because of heating oil consumption, I think it's total BS, only 8% of the homes in the US heat with oil
     
  20. Texshooter

    Texshooter Member

    Joined:
    Jan 29, 1998
    Messages:
    710
    That's it Catpower! The damn Yankies are screwing the price of oil. AJ
     
Thread Status:
Not open for further replies.
Search tags for this page

2015-2016 firewood pricing why so expensive

,

why is diesel fuel so expensive