With all the talk of more diesels in the market , what's going to happen to the cost of diesel fuel, up or down? I guess if they go full force into to refining, prices will be lower, but if not, and the demand stays high were &*^@*& ed.

 

I've read a lot of stories about many excuses for high [ diesel vs gas ] prices .
None of them seem to make as much sense as something that occurred to me ,
The majority of diesels work for a living = less discretionary driving = captured = have to pay .
Gas , more options , not trapped into buying = so the price has to be more completive .

 

In Europe they are moving more twards diesel because it is more efficient. They actually have changed the demand for diesel, now there is an measurable drop in the supply of gas the past few years. I believe it is easier for the refiners to produce diesel vs gasoline. I don't see the prices changing much in the next 6 months or so. One of the problems is there is only so much fuel you can get out of a barrel of crude. If they make more gas there is less to make diesel & jet fuel and more of one will drive the price down. It is just a balancing act for the refiners. One website I really like to view is this one.http://www.eia.doe.gov/ I hope to see the change to more diesel here in the states. The capitalistic economy here works it out just fine. There are sooooooo many refiners in the states alone that makes it impossible to move prices one way or another. I actually feel better when prices are high because it ensures there will be a good supply and no supply problems. JMO

 

From http://www.eia.doe.gov/bookshelf/bro...sel/index.html

Why are diesel fuel prices higher than gasoline prices?
Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.

 

Hey fox! I just realized you are about 1 hr north of me

I have nothing else to add other than I wish diesel was cheaper then gas again.

 

dieselJoh your not far from me, my wife's family lives in Sterling. Hope you are enjoying the nice weather this week , at least the ice has been holding off today (knock on wood). I would like the diesel prices lower too but I just don't see that happening. I hate having to run the credit card twice to get it over $100.

 

And you guys are 2 to 2.5 hours north of me. Guess I missed the ice this go-around. It's coming again, sooner than I want it!

As to diesel prices, I think the higher demand will help the price, not hurt it, with Tier IV emissions for off-highway there won't be any more "high sulfur" diesel, instead there will just be ULSD & bio-fuels. However the price as well as special maintantance costs of VW-TDi's caused me to go with an Accord as a daily driver. If they bring more models over it's going to be important to insure it's a low-maintance and low operation cost unit to be competitive.