Whats up with diesel prices?

How come long haul truckers aren't out there protesting?

Seems like everyone is just accepting it now.

60 cents more a gallon than 87 octane is rediculous!

I'm really thinking gasser as the increased mileage argument is not supporting the price of diesel for me!

How about you?

 

Long haul truckers are hauling products. They just adjust the prices of the goods they are hauling to make up for the price, it doesn't come out of thier own pockets.

 

It is plain and simple price gouging to the Diesel owners. Diesel is a less refined product than gas and it cost less than gass to produce, they are simply charging more for it because they want to make more money plain and simple. It isn't the station's fault either, it is the distributor and the manufacturer who is stickin it to us, the station owners don't really make much at all on the sale of fuel or gas.

 

I don't think they are just simply gouging diesel owners. They're really putting it to the people in a way they won't notice as easily. If prices jumped across the pump (gas as well as diesel) everyone would be screaming. The biggest consumer of diesel (autos, including our beloved CTD's are a fairly small market compared to the big rigs that run up and down our interstates all day and all night, our ships and our trains) don't feel the pinch as they just pass the cost along, quietly. The prices at Wally World creep up a couple of percentage points and the consumer doesn't even feel that hand slipping into their back pocket. This is a lot larger than a few manufacturers doing a little price gouging. It's ALL of them doing it in a coordinated effort. If it were simple as gouging, don't you think that at least one of them would like to undercut the other by at least a little bit and sell a lot more making even more money? I feel in the not so far future, we'll be longing for $4 a gallon diesel...

Now, that being said, shouldn't we all go out and buy another copy of "Catcher in the Rye"?

 

Here is my understanding. Diesel fuel, jet fuel, home heating oil, kerosene, etc., are distillates. Not so with gasoline. You can only get so much distillate out of a barrel of oil. Demand for distillates is increasing, thanks in large part to industrial growth elsewhere in the world. High demand for distillates and high crude oil prices are the real problem. Nothing I have seen indicates it is going to get any better anytime soon.

BTW, the poster who said that commercial users don't really care because they can raise their rates is dead wrong. While they may be forced to raise their rates, those higher rates will inevitably result in less demand for their products, including transportation products. Lower demand will mean lower profits. Of course they care. We all care.

 

Look no further than Exxon's annual report:

http://money.cnn.com/2007/02/01/news...obil/index.htm

$40 Billion! I know, it's capitalism, can't argue with it. They're allowed to charge whatever they want- they'l get is as long as we pay it. Seems shortsighted for them though, high prices at the pump just encourage the automakers and power companies to research less-costly sources of energy. Maybe by the time those new energy sources get close to implementation- Bam! The price of gas will drop back to levels that make it more palatable and meanwhile Exxon and the likes will be laughing all the way to the bank.

 

Sorry, but $40 billion for the world's largest corporation is not out of line. Their rate of return is only a little over 9%. That is hardly a huge profit margin. Everyone is beating up on Exxon Mobil for the wrong reasons. Their profit margin is reasonable, but they need to be fully held to account for the Exxon Valdez disaster, for which they have yet to pay the punitive damages that the court assessed. That account is way overdue.

 

actually inflation is mostly responsible for the current price of fuel. Inflation comes when you overprint currency and spend into debt so badly your assets are devalued.
in our case, since we never paid extra tax towards our country's extra expenses over the last few years, the federal reserve is just printing it up to cover the debt. basic supply and demand.
explaining it in more depth requires talking politics and thats a different forum.
For more info, google (and youtube) the gentleman from Texas in my .sig

 

Trying to keep ONE thread on this subject.




See https://www.dieseltruckresource.com/...d.php?t=194394