zachv

I have had two diesel trucks now and my wife drives a Jetta TDi so we have no other option than to buy diesel fuel all year, but it just gets me angry that the fuel companies decided a few years ago to artificially raise the cost of diesel fuel for no financially sound reason. We all know that diesel is easier/cheaper to manufacture than gasoline, but yet we pay the same, or more, than premium gasoline. Twenty years ago when I started driving diesel was always less than the cheapest gasoline.

I am always just amazed that the people have not risen up against the fuel companies or that big rig truck drivers, and the companies they work for, have never revolted or had a stoppage to show disgust in the pricing structure.

madhat

Yeah... it went from 2.79ish in Sept to 3.19 now... ? I'm not even in Cali...

Load Hauler 04

Prices keep inching up, I think it sucks, but what can you do??? And it's not just fuel, it's everthing,except wages. At my primary job we haven't had a raise or COLA in 4 years. My wife and I work full time and have a side bussiness and just make ends meet. Im in the same boat though, everthing I have is diesel....

MikeyB

The problem with diesel fuel price volatility is that it's a world commodity. Just like raw materials for industry. And the process to remove sulphur does cost more. And the stocking for heating oil this winter is creating more short term demand in the US. And Obama printing money like it's going out of style is making the dollar worth less on the international markets, so we have to pay more for commodities.

MikeyB

zachv

Has anyone ever confirmed 100% that diesel is easier/cheaper to produce than gasoline? Even the new diesel with less Sulpher? I had always heard that it is cheaper to produce than gasoline, but a few years ago the fuel companies started charging "per thermal output" and diesel has a higher "thermal output" than gasoline. That just seems like a crazy way to price something, not based on actual cost of production.

sixguns

Trucking companies just pass it on as fuel charges or shipping charges. So in the end the consumers (us) pay for it twice, in the fuel we buy and the products we buy. It does suck we have to work twice as hard just to stay ahead of the bills. I see this morning fuel is $3.26. I tell ya we've never sat at home and done nothing more than in these past few years than ever before. It gets a little old.

yfz450guy

i have heard that diesel is a by-product of making gas and back in the day nobody wanted it and they were pumping back into the empty oil wells.
just have been hearing that for years no proof that it is true or false.

67HotRod

Some of my friends either drive or mech for trucking companies and they tell me they have agreed on fuel contract prices. The independent truckers are the one that pay the advertised prices. Prices started dropping here, back to $2.89 a gallon now.

Raspy

That really jerks my chain too. Any story to further jack the prices up.

Now, with China buying cars like there's no tomorrow, making deals with oil producing countries, and the world demand for fuel spiraling upward, the cost is bound to go way up. Just wait till the economy improves and everyone wants a Hummer and a power boat. $5.00/gallon here we go again. Or if we decide to go start another war in the Middle East and someone starts shooting ships in the Straits of Hormuz. In that case we'll be wishing it was "only" $5.00/gallon.

AaronT

Don't forget the FED, with them printing money at about $70 billion a month the value of the dollar is going down against other currencies in the world. Therefore the price of everything goes up. Right now home heating oil is drawing more so diesel goes up and a barrel of crude is up the highest in 18 months. ULSD cost a few cents more to refine yes this is not what causes price increase cycles.

anoldbiker

They usually do their mechanical repairs during the late fall and winter months. They try to have a reserve while they are down. But to make sure they have play in their reserve, they raise the price per gallon to have the public ease up on buying diesel. Diesel is also in the crude cut for Jet, Heating oil and such. So when they start storing for heating oil, they make less diesel. Jet is mostly kept at the same amount since contracts 'must' be kept. Thus the increases in prices. (government is the highest priority)

What I read about a year ago was the oil companies found they can process the diesel here and sell it in bulk overseas for a higher price. This makes them more money, but lowers the total amount that can be sold for us.

All this is playing the games to make the buck, here or where the market highs will be.

As for making the low sulfur fuel, yes it does cost more, but they have a market for the off cut products. It can be used in many products. More profit. But when they invest in new equipment and units, they can defer the cost over a 20 year period that helps them reduce the effects on the over all effects.

The refineries have had opportunities to build more, but the companies haven't since this would increase production and keep the prices down due to constantly having full storage levels. It's cost effective to keep the present refineries at full capacities than more refineries running less than maximum capacity. And if something happens, raise the price, thus lower the sales, repair only what you have to, and back to normal business. The customer ends up paying, or hurting, but not them or the government.

Ever wonder where the crude goes that is pulled from U.S. soil ? Does it all stay here, or does some goes elsewhere ?

Alaska has sweet crude and is easy to process in refineries. It's like putting your truck on cruse control for the long haul. But not all comes to the west coast refineries. It goes to the highest buyers. More profit, and then they buy cheaper crude for the US to process, higher in sulfur, costing more to process and the cost is passed to us.

Round and round it goes.


.

kawi600

If we make a product here that is also a worldwide commodity, like petroleum, its going to sell for the best price it can. Not much we can do about that. Engaging in protectionism and price controls causes other BIG problems too.
Instead of complaining about the price of petroleum we should all be writing to our representatives who are allowing the federal reserve to print even more money, devaluing what we save and earn
I havent had a raise in a Looooong time. Took a paycut after a layoff like a lot of folks. Now I make the same amount I did in 1998, back when gold was under 300$ an ounce. Now it is 1400$ an ounce. Why does everything seem more expensive? You do the math

OldDodgeOwner

Ya know, I'd like to be payin a dollar a gallon again, but I can't really get mad. If I owned a refinery I'd be tryin to make the most money out of it I could too...

Scotty

http://online.wsj.com/article/SB1000...googlenews_wsj

This might help a bit but probably not if everyone that sells is grinding for top dollar.

MikeyB

Don't feel bad, I'm only driving my Ram when I can write the mileage off now.

MikeyB