More diesel cars/trucks=higher diesel prices?
I do not think it will impact us much at all.HOWEVER,the constant GREED shown by the big oil companies for profit on a fuel that is a by-product of making gasoline amazes me more.Long ago they,Big Oil,about gave away diesel as they had no use for it.Now every Class 8 truck needs it,locomotives use it and even some factories so the demand went up and so did their greed.
Think about it...
The demand in the gasoline market is dropping some due to better fuel milage out of automobiles and their smaller fuel tanks.In the Class 8 truck market if you get more than 7mpg you feel great and alot of fleets average alot lower than that.With the average owner of a auto having much smaller tanks to fill who will make the biggest spalsh at the pumps then???..A Class 8 truck will with their larger near 300 gallons capacity and their poor fuel milage.I am convinced that it is the reason for the cost of diesel going up,the big oil companies greed that is.
One thing most forget is that with the costs of operating a Class 8 rig skyrocketing that it will hurt you also in the wallet.Most everything is carried at some point by truck and when it does it takes fuel to move that product and the extra costs are passed onto the consumer in rising costs at the checkout.
It is embarrassing to me what the big oil companies charge for a product they once tried to give away.Those costs are closing companies daily as they can not compete due to rising operating costs.I only wonder when the American people will say enough is enough and put the squeeze on Big Oil.One thing is for sure,IF you drive for a living such as I do,you have not seen any curtailment in peoples driving habits with the prices skyrocketing,they just drive more and Big Oil gets richer.........Andy
Think about it...
The demand in the gasoline market is dropping some due to better fuel milage out of automobiles and their smaller fuel tanks.In the Class 8 truck market if you get more than 7mpg you feel great and alot of fleets average alot lower than that.With the average owner of a auto having much smaller tanks to fill who will make the biggest spalsh at the pumps then???..A Class 8 truck will with their larger near 300 gallons capacity and their poor fuel milage.I am convinced that it is the reason for the cost of diesel going up,the big oil companies greed that is.
One thing most forget is that with the costs of operating a Class 8 rig skyrocketing that it will hurt you also in the wallet.Most everything is carried at some point by truck and when it does it takes fuel to move that product and the extra costs are passed onto the consumer in rising costs at the checkout.
It is embarrassing to me what the big oil companies charge for a product they once tried to give away.Those costs are closing companies daily as they can not compete due to rising operating costs.I only wonder when the American people will say enough is enough and put the squeeze on Big Oil.One thing is for sure,IF you drive for a living such as I do,you have not seen any curtailment in peoples driving habits with the prices skyrocketing,they just drive more and Big Oil gets richer.........Andy
AMEN!!!... Ever notice how any new fuel technology is always..."a decade away" They were saying that about hydrogen 25 years ago. There was a guy in Colorada or Utah that converted his Jeep Cherrokee to hydrogen in his carport.
Everybody says we need to develop the infrastructure to support hydrogen fuel stations...hhhmmm... it seems we can rip up a gas station AT WILL to install environmentally friendly tanks, shouldn't be THAT much harder to install a hydrogen station. We've got propane for sell on every corner...hhmm.. ok, I'm done ranting now.. sorry!
Personally, I think the big influx of diesel powered automobiles has allowed the oil companies to raise the price, citing supply vs. demand. As unpopular as it may be, I feel like there could be some truth to that, just an observation of the amount of diesel powered pickups, jeeps, and cars... the tide is DEFINITELY turning...
IMHO, in the end, as sad as it may be, theres not alot of ways to stop what major oil companies, insurance companies, automobile manufacturers, medical industry, and pharmacutical companies do. Between them, they basically own the government. Some say get out and vote, hmmm.. not alot of choices, its like "pick your poison"!!!..
OK, NOW i'm done ranting.... sorry bout that.
Everybody says we need to develop the infrastructure to support hydrogen fuel stations...hhhmmm... it seems we can rip up a gas station AT WILL to install environmentally friendly tanks, shouldn't be THAT much harder to install a hydrogen station. We've got propane for sell on every corner...hhmm.. ok, I'm done ranting now.. sorry!
Personally, I think the big influx of diesel powered automobiles has allowed the oil companies to raise the price, citing supply vs. demand. As unpopular as it may be, I feel like there could be some truth to that, just an observation of the amount of diesel powered pickups, jeeps, and cars... the tide is DEFINITELY turning...
IMHO, in the end, as sad as it may be, theres not alot of ways to stop what major oil companies, insurance companies, automobile manufacturers, medical industry, and pharmacutical companies do. Between them, they basically own the government. Some say get out and vote, hmmm.. not alot of choices, its like "pick your poison"!!!..
OK, NOW i'm done ranting.... sorry bout that.
What has been said is very true. We will NEVER see a true infrastructure of alternative fuels until the big oil companies have isolated the market. If independents had a shot, you would see small chains of hydrogen stations everywhere.
Electric power is the dumbest idea of all; don't even get me started on how that's worse than our dependence on oil.
Unfortunately, the big oil companies have us where it hurts and when they decide to change, they will force auto makers to do so as well; until then, use Giant Eagle fuel perks so that you don't have to pay for fuel in the first place!!!
Electric power is the dumbest idea of all; don't even get me started on how that's worse than our dependence on oil.
Unfortunately, the big oil companies have us where it hurts and when they decide to change, they will force auto makers to do so as well; until then, use Giant Eagle fuel perks so that you don't have to pay for fuel in the first place!!!
In my opinion the story with Diesel Fuel prices is as follows;
Diesel Fuel has been forever a commercial fuel. Its taxed to death becasue of that. In Florida diesel is taxed $0.54/gal. Gas is $0.36/gal. It may have gone up since I just typed it. Anyway, During Hurricane Katrina when many producing plants had problems, the price jumped over $3.00/gal. No one really paid much attention since it was real with the damage to refineries and offshore platforms and rigs.
A year later, the price drops some, but stays High. The truckers have never said anything about the prices. Why?, they were told it did not matter since it was going to tacked onto the freight charge for the goods being transported.
That said, there is no incentive for the people who price Diesel to reduce the price since we, US, out here only make up <10% of the total diesel sales.
We can't deduct the price of fuel as a operating cost as Corporations can.
So they run free of charge passing it on to us at every store you go to.
How else can you explain truckers fueling up at 3.10/ gallon and 5 miles up the road its 15 cents per gallon cheaper. It don't matter.
What needs to happen, is, they need two differant pumps, one for commercial vehicles and one for private diesel vehicles with a comparable
tax as on Gasoline. That alone down here would reduce the price by
$0.20/gal or more. Its currently $ 2.95/gallon here, higher at the Pilot Stations $3.10/gal.
As mentioned above, with more diesel vehicles being sold, something needs to be done. Because if the price does not come down, those new diesel vehicles will sit even if they get 45mpg.
Diesel never cost much to make as it comes off the Cat way down on the tube. Some extra refinning is needed now with the ULSD. But, I can't believe it cost more to refine than Gasoline.
My opinion.
Dave
Diesel Fuel has been forever a commercial fuel. Its taxed to death becasue of that. In Florida diesel is taxed $0.54/gal. Gas is $0.36/gal. It may have gone up since I just typed it. Anyway, During Hurricane Katrina when many producing plants had problems, the price jumped over $3.00/gal. No one really paid much attention since it was real with the damage to refineries and offshore platforms and rigs.
A year later, the price drops some, but stays High. The truckers have never said anything about the prices. Why?, they were told it did not matter since it was going to tacked onto the freight charge for the goods being transported.
That said, there is no incentive for the people who price Diesel to reduce the price since we, US, out here only make up <10% of the total diesel sales.
We can't deduct the price of fuel as a operating cost as Corporations can.
So they run free of charge passing it on to us at every store you go to.
How else can you explain truckers fueling up at 3.10/ gallon and 5 miles up the road its 15 cents per gallon cheaper. It don't matter.
What needs to happen, is, they need two differant pumps, one for commercial vehicles and one for private diesel vehicles with a comparable
tax as on Gasoline. That alone down here would reduce the price by
$0.20/gal or more. Its currently $ 2.95/gallon here, higher at the Pilot Stations $3.10/gal.
As mentioned above, with more diesel vehicles being sold, something needs to be done. Because if the price does not come down, those new diesel vehicles will sit even if they get 45mpg.
Diesel never cost much to make as it comes off the Cat way down on the tube. Some extra refinning is needed now with the ULSD. But, I can't believe it cost more to refine than Gasoline.
My opinion.
Dave
I've been a tractor trailer driver for over half of my career and always saw diesel as being the cheapest fuel. Now that I bought a Dodge Ram 2500 CTD, now diesel is more expensive than premium and I just sold my 04 Corvette that got 28 mpg on the highway. Some one is reading my mind....and is always one step ahead of me. Frustrating to say the least.
I wish I could pay $3.10, I just paid $3.30 and that was cheaper than the $3.50 seven miles up the road.
As stated, it makes no difference to the truckers as it is passed on as a fuel surcharge. We then pay for it again when we buy any product.
As stated, it makes no difference to the truckers as it is passed on as a fuel surcharge. We then pay for it again when we buy any product.
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Diesel in America is a product on the free market, the price is governed by supply and demand, demand is at an all time high with the diesel consumed by boats, military, foreign countries that 5-10 years ago consumed far less...
Corperations have a duty to the shareholders to sell their products (be it jeans, diesel, or widgets) at the highest price possible.
Corperations have a duty to the shareholders to sell their products (be it jeans, diesel, or widgets) at the highest price possible.
In all honesty, we shouldn't complain. When compared to most other goods, fuel has withstood the onslaught on inflation better than just about anything and is still so cheap compared to other goods.
Be glad you don't live in Europe. In the UK, you pay over $10/gallon for gas and $5/gallon for diesel. We definitely have it better than most, even though I do find the price annoying.
Be glad you don't live in Europe. In the UK, you pay over $10/gallon for gas and $5/gallon for diesel. We definitely have it better than most, even though I do find the price annoying.
Much of the problem is from outside the US. There are 1.6 million Chinese folks who have given up their bicycles, and what they are driving requires fuel that was never needed previously. Supply and demand: if you don't buy it someone else will--and if it's not sold then (and only then) is there a sale.
Did you notice the short time we had cheap diesel last summer, when gas prices peaked, vacation time. I hear often that is the case in the summer, and that fall/winter diesel prices peak because of kerosene heaters and such. Not sure if thats the truth, but its there. I think its just typical inflation coming at the same time as these new diesels hittin the market making it look like theyre the reason.
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Andy505
Fuels / BioDiesel / Diesel Prices
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Mar 5, 2006 07:54 AM



