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View Full Version : Can Someone Explain Why Diesel Is Cheaper Than Gas - NOW?


pet05
05-23-2007, 07:59 PM
Why is it that diesel is less money than gasoline ( I am NOT complaining). I don't understand why it's cheaper now, then later it becomes more expensive. Who sets the prices???[duhhh]

rustbucket
05-23-2007, 08:04 PM
ain't it great,60 cents cheaper here,parking my mini van,and driveing the 93 most of the time now.[laugh]

mikmaze
05-23-2007, 08:07 PM
keep your voice down, "they" might hear you.......... http://en.wikipedia.org/wiki/Jinx

Shovelhead
05-23-2007, 08:29 PM
It's not as much a case of Diesel is now cheaper than Gasoline, [nonono]

....but rather Gasoline is now more expen$ive than Diesel Fuel. [dummy] [tapdshut] :o

dodge325
05-23-2007, 08:30 PM
yea, dont make a big deal out of it, its great!

txfiremedic
05-23-2007, 08:39 PM
I heard that they finally caught up with the demand caused by the heating oil shortage in the north and now that there is not as much demand, the price has gone down. Thats what aired on our local 10 o'clock news last night anyways.

timcasbolt
05-23-2007, 08:41 PM
Because the price of fuel is not based on cost. It is based on market demand. I'd bet that diesel fuel useage is more consistent than gas from one season to another resulting in milder price swings. When refineries convert to heating oil in the fall, diesel fuel prices go up. When vacation season rolls around in the spring, gas goes up.

dieselJon
05-23-2007, 09:00 PM
A investment advisor told me this when I asked him. The diesel needs less refining than gas while the demand for gas is going up due to increased demand for people going on vacation. Now gas is going up also in part that they have the supply and demand but the bottle neck is the refineries. There are NOT enough. And so on and so forth about the EPA and its demands.

Also people are not refusing to pay the $3-$4 per gallon, they are just complaining.

Jon

Clayten
05-23-2007, 09:04 PM
How do you refuse to pay what they want for gas. If you want bread and the only bread store in town says $100 for a loaf of bread you pay $100 or go without bread.

catmandoo
05-23-2007, 09:08 PM
i was in a gas station the other day and a lady was paying for her gas,and blurts out fairly loud"this is just outrageous"i had a hard time keeping from busting out laughing,i almost said hey now you know how i've felt for the last 2 years.but figured it wasn't worth the trouble.i'll agree keep your mouth shut i'm loving this lots cheaper then gas diesel fuel.

HorseHauler
05-23-2007, 09:20 PM
I love it, $2.63/gal here for diesel, $3.50/gal for gas woo freakin hoo!!!

edwinsmith
05-23-2007, 09:34 PM
I would guess that more people are driving for vacations rather than flying because they're fed up with being searched and treated like criminals by the TSA goons. I refuse to fly commercial now. I always drive. This would increase demand for gas while reducing demand for jet fuel. (Diesel and Jet fuel are very similar)

Price is set by supply and demand.

Edwin

steelblitzkrieg
05-23-2007, 09:56 PM
As someone else said I always understood that Diesel and home heating oil were very similar if not the same...Winter is over, demand goes down, price goes down.

boostjunkie1
05-23-2007, 09:59 PM
NO- - - - I traded my Diesel for a Gas powered truck! That is why!! JB

phox_mulder
05-23-2007, 10:02 PM
NO- - - - I traded my Diesel for a Gas powered truck! That is why!! JB

On behalf of 99% of the members of this board, Thank You.


phox

Raspy
05-23-2007, 10:11 PM
It kills me that everyone thinks $2.80 for a gallon of diesel fuel is cheap or that we're getting away with something at that price. [dummy] [verymad] Sheesh. What will it take to get people mad?

So I guess the logic is that if gas goes to $9. per gallon that we should be glad to pay only $8.?

How much record profits and how many billions will it take to finally get us to adjust to a new system. Something like more refineries, more oil company competition, boycotting, or better corporate fuel mileage. Or even, heaven forbid, an attempt to use less?[rant]

Wetspirit

tx_2500
05-23-2007, 10:20 PM
im sure diggin it! im not about to park my motorcycle in favor of the dodge, but its nice for diesel to at least be cheaper because it should be anyways!

and it is sad when we get excited about anything under 3.00 for gasoline. i can remember my parents ranting about gas being over a buck! (im only 23)

wrm
05-23-2007, 10:25 PM
when people start using heating oil this winter the price will go back to more than high test gas .so enjoy wile you can it wont last long.

b.lee
05-23-2007, 10:38 PM
keep your voice down, "they" might hear you.......... http://en.wikipedia.org/wiki/Jinx


thats what i was thinking, [tapdshut]



and



thanks boostjunkie1 [laugh]

wcbcruzer
05-23-2007, 11:15 PM
It'll go back up. :rolleyes:

Clayten
05-24-2007, 12:43 AM
I remember buying diesel in the 70 ts for .50 cents a gallon. Imperial gallon. There is more to this than meets the eye, the real fact is that I have seen refineries torn down and leave this country and go to China.Chevron owns the rights to the nickad battery. The best battery known to run a car, and they successfully sued Toyota for 30,000,000 dollars because they where using that battery.
Supply and demand is only what the seller wants you to believe. I understand right now that oil workers are being laid off in Alberta. The reason is a glut of oil.
I have worked in the oil field for many years, and they are very shrewed people.Now they don't want to pay over time.These oil companies are not nation builders. Or nation supporters. Completely loyal to none.
I despise them to the fullest.There was a time when sugar ruled the world and a few women in England brought about their demise.
Trying desperately not to make this political.Just very upset at the way the oil prices are going.
In Canada our fuel is at 1.309 per liter for cheap gas. 1.039 per liter for diesel multiply that by 3.85 to compare to the us gal.
We need an alternative, no matter who or what you are, you are a slave to the oil barons. They dictate what you get to put in your pocket, and you never know what it will be.

nirion
05-24-2007, 05:44 PM
While I am like seeing diesel below gas, I still have to pay for gas for my wife's Rav4. Even with gas 50-70 cents more per gallon, it is still cheaper to drive it than my truck. It gets about 28mpg on the freeway and my truck does about 18mpg. So 500 miles / 18mpg = 27.78 gallons x 2.76 per gallon = $76.67. 500 miles / 28mpg = 17.85 gallons x 3.30 per gallon (what I paid today for gas) = $58.90. I am very anxious to see the Ram 1500 diesel when it comes out.

dieselfuelonly
05-24-2007, 05:59 PM
I was pleasantly surprised the other day when I saw all the gasoline grades above $3 and my diesel fuel sitting at $2.83ish.

/me hushes up now.

Alaskaworktruck
05-25-2007, 03:13 PM
I'm not sure what everyone is paying for fuel elsewhere. Here in Alaska we supply 20% of the nations crude oil and we have a refinery 12 miles from town and still pay around $2.65-.70. I purchased a 150 gal. aux tank for the bed and a 20 GPM 12v. pump and buy it in bulk. If I purchase over 150 gal. I get a .15 cent per gal break. If I convince the kid behind the counter it is for my off road equipment (skidsteer, or forklift) I don't pay the road tax, another .10 cheaper. Every time I fill the aux tank it is like getting a factory tank and a half fill-up for free. In the winter time I am able to purchase the above ground heating oil even cheaper than the gas station winter blend diesel. In two winters of driving havn't notice a bit of difference between the winter blend of heating oil and pump diesel as far as performance.

dieselfuelonly
05-25-2007, 03:17 PM
I hope you aren't running that off-road diesel in your truck b/c you could get in big trouble for that [nonono]. (Especially don't post it on a public forum :).

Alaskaworktruck
05-25-2007, 03:48 PM
It's for the skid steer!!

patdaly
05-25-2007, 05:39 PM
I'm surprised none of you have seen the obvious.

The whole Diesel being cheaper than Gasoline thing kinda shoots the price gouging theory "because they can".

Otherwise Diesel would be 4 bucks right now.

Supply and demand works.

wcbcruzer
05-25-2007, 06:12 PM
Otherwise Diesel would be 4 bucks right now.

It'll be 4 bux soon... :rolleyes: :confused: [whistle] :D :o [yuk] [eyecrazy]

Dang, honostly it's not worth having a truck anymore. Not even with the current prices. We have a camper to go on it, and back in the day it was worth taking cause you'd save money on a hotel. But now the difference in price between taking a small car and staying in a hotel is not much more than taking the truck with a camper. Unless you go long-term.

belfert
05-26-2007, 08:36 AM
As someone else said I always understood that Diesel and home heating oil were very similar if not the same...Winter is over, demand goes down, price goes down.

The last few springs the price of diesel has still remained above gasoline even after heatng season has passed.

I don't think it being spring/summer has anything to do with it.

Brian Elfert

induchman
05-30-2007, 03:13 PM
bread store in town says $100 for a loaf of bread you pay $100 or go without bread.

No, you learn to make your own. I could put you into a field of barley or wheat and watch you starve to death or teach you how to make it into something that is good to eat.

Same goes for bio-fuels. Making it yourself, keeps your operating costs down and cheats the refiners, importers and the govt (not taxed).

induchman
05-30-2007, 03:15 PM
http://www.bloomberg.com/markets/commodities/energyprices.html

Forget the crude prices, look at the landed price of gasoline and heating oil. Last week gas was 2.40/gal - this afternoon it's 2.27. Heating oil hasn't changed much in the last three weeks, hovering around 1.87/gal. Add Fed and State taxes, about a dime for transport = what you should be paying vs what you are paying.

patdaly
05-30-2007, 05:08 PM
Another good place, I watch it almost daily: http://www.wtrg.com

VADSLRAM
05-31-2007, 06:47 AM
Diesel should always be less then gas, not just because I drive one :cool:
It's less expensive to refine, less volital so it's less expensive to transport, not as flammable so it's less expensive to insure the distribution chain. The reason it's as costly as it is is because of road taxes and competition with basically the same fraction (home heating oil, You ever notice diesel prices go up in the fall?) I have always been paying less then regular gas but I fill up at commercial distributer where the city busses etc. fill up. Even the b20 is only $2.81 gal.

thxman
05-31-2007, 06:44 PM
Even the b20 is only $2.81 gal

Notice how easy it is for us to say "only $2.81 gal. *Note to oil companies mission accomplished![laugh]

VADSLRAM
06-01-2007, 10:53 AM
Price is comparitive.
The first time I filled up diesel was ONLY .99 and gas was a a ridiculously high 1.32
Now 2.81 (2.69 if I use plain oil dino juice) is only only when compared to 3.24 for regular gas.

Barry St John
06-01-2007, 11:32 AM
Just remember folks.. You used to be able to buy a cup of coffee at any diner for a dime and a gallon of gas was $.30. Now you are paying $3.30 for cheap gas but you can't find very many places that sell a cup of Joe for $1.10... Compared with alot of things fuel is still reasonable in the U.S.A. I believe you guys in Canada are paying more for fuel and you ship a ton of it south. Everything is relative especially when you consider the cost increase in fuel production brought on by our politically correct environmental awareness!

2RamsNoCash
06-02-2007, 09:27 AM
never was a heating oil shortage up here.we used less than average this winter and our heating season didnt start until end of Dec we had mud until christmas when its usually in the single digits.It was the folks way up the line gambling on futures.I agree supply and demand however in my two homes one on lake Champlain other close to NH seacoast I used 400 gals in NH usually use 550 and 300 in VT usually use 600 for year in VT but its a boiler for heat and hot water. so if I used 20% less I would assume others did as well.funny thing was up until late December we paid 2.15 a gal for off-road same stuff as heating oil penny difference at rack.but #2 was 2.55 and diesel was between 2.35 in NH much of winter to 2.79 in VT same period funny in summer 06 VT was .25 lower than us.I truly believe is just marketers charging what they can get and truth be known their profits are way up.When a oil co passed wally world for profits a couple years ago we all should have known we paid for it and still are.

mytrucksaslug
06-16-2007, 01:17 AM
Is supply and demand really true? It's gonna get cold in the winter and everyone knows and expects it. For demand to go up, it would mean people wanted their houses to be warmer, say 100 degrees instead of 70ish. Its the requirement for heat that goes up. To say that its demand that is rising would mean that it is a surprise that was not expected.
They say fuel prices have remained low relative to say coffee or milk. If millions of gallons of coffee or milk was sold each day, would they need to raise the price to be profitable? Oil companies have raised the prices simply because they can. It's been said that if all the semi trucks in california simply did not run for only one day, the lack of fuel purchase would be disasterous to the state. If only there was a way for the whole country to refuse to purchase any petroleum products for a day.

03qclb5spd
06-16-2007, 01:45 PM
It kills me that everyone thinks $2.80 for a gallon of diesel fuel is cheap or that we're getting away with something at that price. [dummy] [verymad] Sheesh. What will it take to get people mad?

So I guess the logic is that if gas goes to $9. per gallon that we should be glad to pay only $8.?

How much record profits and how many billions will it take to finally get us to adjust to a new system. Something like more refineries, more oil company competition, boycotting, or better corporate fuel mileage. Or even, heaven forbid, an attempt to use less?[rant]

Wetspirit
Excellent, I agree. I remember back in the mid to late 90's when I saw gas hit 61 cents for a gallon. I didn't start paying attention to diesel prices until the first of this decade, when it was in the low buck range and gas was about 30 cents higher. I think that most of the citizens in the US can only complain. It would be nice if hundreds of thousands would get together and go wherever we need to go and kick the oil companies a$$es. I think a fair price these days for any fuel is about 2 bucks a gallon. I'd be comfortable paying that.
I hope you aren't running that off-road diesel in your truck b/c you could get in big trouble for that [nonono]. (Especially don't post it on a public forum :).

Well it's not like anything is going to happen to him, how would anyone find out who exactly he is by reading on this forum?

kingofdodge7131
06-18-2007, 05:04 PM
One thing im noticing. It was REALLY nice a few weeks ago when gas was 3.30 and diesel was only 2.80. BUT now its not as big. Gas is dropping every day and diesel stays the same. itso nly about a 10 cent diffence now

DBLR
06-19-2007, 11:32 AM
We got lucky here as our diesel has now gone down 3 cents to $2.69 for the first time in several months and gas has once more dropped this time to $2.79