Diesel will never be cheaper as long as the demand is so great...the oil companies are playing smart, they recognize the uproar created when they were jabbin' us for gas so this is really a bigger windfall (that's why there are ever rising profits)...most of us don't even think about the rest of the the demand beyond OTR trucks, cars and heating oil: airlines, big ships, trains, manufacturing, plastics and diesel power generating. Should I even mention strategic reserve and the millions of gallons going to the big sandbox?

 

Part of it is the change th ULSD. It cost a few hundred million $ to change over one refinery from LSD. The are not going to recoup costs overnite, but they will get their money back & make a profit. Thank the EPA.
Global economy also seems to be a factor. Diesel seemed to be tied to the price of gasoline, sometime prior to 2000, maybe 1995. Since then, Gas & diesel trade seperately. You can also look at Heating oil futures(and gas) and Diesel sells for $.50-.60 over futures price, almost always. It sucks, but that is how it is.
If there is any good news, imagine owning a Chevy 8L gaser truck to move your 10-15k load dowd the road. That would be 6-8mpg, 30-50% less tha our CTD's.
Perhaps the biggest issue is our country's balance of payments, resulting in the $ worth less. This also results in higher diesel, especially as speculators pour money into oil futures and Euoro's, or almost anything else. Only the Peso has done slighly worse.
The list of guraentees in life:
1. Higher taxes
2. Death
3. Higher fuel costs
4. More memory and larger HD for your computer
5. A new Micrsoft version for your computer and eventually a new computer. Any 386's out there? 486's? Compueters have come WAY down in costs, one of few things.

 

i was in south america last winter and everything is diesel(prettycool) but they pay a lot more than we do. Bolivia which is the poorest country in south america, sells by the liter, around 12 boliviaonos(sp), 1 us doller is 8 boliviaonos, so do the math. we still have it comparitivly cheap, but i still believe that is it is price gouging.

 

back in the '70's, i was told by a oil company rep that they were going to price all their products by the amount of energy the fuel contained. i guess it finally happened. when pricing out for my new truck i figured a $1.00 difference between gas and diesel. i still had less than a three year payback for the few miles i drive. the new 6.7 should get 2.5 to 3 times the mileage my gas rig gets. so even with higher prices, i'll save fuel with the new truck.
diesel fuel here is $3.95/gallon.
cc

 

Why so much.....Dodge and Cummins start talk-in and have a great idea to combine their products and 10000000000000000000000000 trucks later we have a sellers market....its not going down sorry

 

Well there it is... $4/gallon is becoming more of a reality everyday. I thought California was the most expensive. Funny, I remember there was a thread on this forum about a year ago or so asking "How high should diesel prices get before you sell your truck?" Some people were saying they'd sell at $4/gallon.

 

I'll start driving 55mph before selling the truck.

MikeyB

 

I'm not holding my breath that it will and crude just broke $98/barrel.

 

*Puts on his flack jacket*

What irks me is that there 1000s of people who drive a diesel pickup and have zero use for them at all just because its cool to have a loud pickup thats fast big deal. All them people who are buying the diesel pickups are making it harder for us that do need the diesels to stay in a diesel pickup because of the rising prices vs demand for the oil. So think as this as survival of the fittest naturally selection if you will because eventually the people who bought them for the cheep fuel are going to be weaned out.

 

Hope its not a cold winter, when heating oil use kicks in watch out $$$$

 

so, i may be wrong here and it is early and i certainately not trying to start something but, wouldn't that make it a buck fifty a liter?

 

Yea but there's almost 4 liters in a US gallon..

 

lol... That's a good way to think of it. And I think you're right. We just gotta wait till prices reach a certain level.

Life just keeps getting harder. Like mentioned above, oil is now up to $98/barrel. Doesn't sound like it's going to stop anytime soon either. I'm hoping prices will level off for a while. Just 8 years ago it cost $16/barrel!

 

At some point years ago the oil companies decided they should charge more for diesel because it has greater energy density (energy per unit volume) than gasoline. Prior to that diesel was cheaper because it was cheaper to produce.

It's still cheaper to produce. The only reason for the change of paradigm was to make more money.

 

At the risk of getting pummeled on this thread, you guys do realize that the oil speculators are the ones that set the per barrel price, right? It's not the oil companies...