For the past few years, we have been told that it is now more expensive to refine diesel than gasoline.....thus, higher price. At least that's what the answer was on emails I have sent to the major oil companies, and have read.

Now that both diesel and gas have reached the $4.00 range (around here), the $.40/gal difference has shrunk to as low as $.10/gal difference in some places. The norm is probably around $.20. Some say supply and demand, but I'm not sure I believe that.

What do you think?

 

I have always been told that it was easier to refine Diesel, but the sulfer removal could add some cost.

 

Supply and demand. The world, (except for the US) is running on diesel.

 

Has supply and demand changed that much over the past few months?

 

I wonder if the mild winter, especially in the NorthEast, has left supplies high. There isn't much difference between heating oil and Diesel that a few drops of additives couldn't fix.

 

Diesel is a hot commodity for export. That will keep the supply low.

MikeyB

 

On CNN the other day they had some hearings on fuel prices in general. The economists say it has nothing to do with either point. It's all being controlled by futures trading, which makes perfect sense to me. Diesel is still cheaper to refine.

 

What helps keep our price high is the fact we export over 600,000 barrels of diesel every day ( each barrel hold 42 US gallons) that keeps the US supply low and low supply means we have to pay higher prices. Also we import gas from all over the EU as most of the EU runs on diesel, that means they have an over supply of gas that we can buy cheaper then gas that is made in the US.

Oh lets not forget that new EPA rules have hurt the refinery's and one reason that helped 3 refinery to shut down on the east coast in the last year. I bet many have forgotten that Obama told us back in 2008 that his ideas to save the environment would raise energy prices and now we find out that Armendariz the head of the EPA "stressed the importance of “making examples” out of companies that violate environmental laws. “It is kind of like how the Romans used to conquer the villages in the Mediterranean — they’d go into a little Turkish town somewhere and they’d find the first five guys they saw and they’d crucify them. Then that town was really easy to manage for the next few years.”

Armendariz continued: “And so, you make examples out of people who are, in this case, not complying with the law. You find people who are not complying with the law and you hit them as hard as you can and you make examples out of them. There’s a deterrent effect there. And companies that are smart see that. They don’t want to play that game and they decide at that point that it’s time to clean up. And that won’t happen unless you have somebody out there making examples of people.”

 

What's the real truth about diesel prices you ask? They SUCK!!!!!! There is absolutely no reason for diesel to be so much higher than gas other than fact that diesel engines in general have become popular and the oil idiots know it so they can charge whatever they want for it!!!!

All the auto makers are pushing their pitch about "our line of (gas) vehicles gets xx amounts of mpgs." That's all well and good but if we're trying to make vehicles (both gas and #2) that get so much better mileage then why are they gouging us at the pump for owning a fuel efficient car/truck......BECAUSE THEY CAN!!!!! Again, I call bullcrap on the whole situation. Gas guzzlers back in the day, aside from "the gas shortage" back in the 70's, were doing so at a very cheap price. Today, with most every new vehicle obtaining at least 20 mpgs, we're being punished for it.....WHAT GIVES??????

 

When the news was buzzing about the coming of ULSD, they said it would add about 5-7 cents a gallon to the price. I later saw some bogus news bit that said it was costing 25 cents more a gallon. People in the industry tell me its a combination of factors revolving around overseas demand, futures trading, and something I think was called "boxing" where refiners and distributors basically conspire to hold prices up to the retailers. Of course, the retailer I was talking with claimed that their prices were essentially constant. Hell, anybody with a pair of eyes can see that ain't true. Prices here can fluctuate 10 to 12 cents a gallon within just a few miles. Seems like it all began to get worse after Hurricanes Ivan and Katrina. I even heard on the news one day back then that "oil prices went up today based on the FEAR that tropical storm such and such will disrupt oil flow in the Gulf". Huh?
A piddly tropical storm?

 

Supply and demand has nothing to do with fuel/energy.

It charges what the market will bear, period. I need to get to work, to get there I need fuel, to get fuel I need to pay the going rate or I do not work.

If you have noticed the abundance of odd statistics they keep in sports lately you can guess what kind of math geeks are crunching numbers for the fuel industry to find out exactly what the price can reach before consumption falls off and sales drop. As soon as this begins to rear up, the price drops a few cents and people notice, happy to shell out 4 bucks becasue it is better than $4.15 it cost two days before, feeling like they saved money and got a break even though in the US it should be a dollar a gallon PERIOD. That alone would jump start the economy and get us back on track because everybody uses fuel.

Its so simple it is stupid, that is why it won't happen. Everyone has a little extra cash on hand to spend from g'ment down to the burger flipping teens because they aren't getting drained at the pump and have extra cash on hand to circulate.

 

Can ANYONE think of a product that doesn't rely on a petroleum product at some point in its' manufacturing?