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Car Forum / Ford / Ford Trucks / December 2005Price of diesel
When I bought my 2003 6.0L at the beginning of the year diesel cost less that regular gas. Today it was 15 cents more expensive then premium gas. How come? Will it ever be less than regular gas again? Simon Simon, the price of diesel is reflective of the price of home heating oil, as they are basically the same except for a few additives. Fuel oil is traded as a commodity on the open market and is high right now due to the season we are in. Venezuela has put in the market a large amount of heating oil and that is why you are seeing the price of diesel go down. As for the price, probably not until the market recognizes the benefits of diesel engines, but why do that when they last longer and we would not trade them in as often! > Simon, the price of diesel is reflective of the price of home heating > oil, as they are basically the same except for a few additives. Fuel [quoted text clipped - 4 lines] > recognizes the benefits of diesel engines, but why do that when they > last longer and we would not trade them in as often! It is the same stuff. I talked to my distrubtor for heat oil in this area and they are a very big operation. They only difference is that heating oil has a dye added that glows under black light and diesel fuel does not. Refineries do not make and stock two grades of number 2 oil. It is all #2 diesel and then they add dye to the taxe free heating oil or mix some #1 with it to winter blend the number 2 in winter time.  Signature----------------- www.thesnoman.com Simon, the price of diesel is reflective of the price of home heating oil, as they are basically the same except for a few additives. Fuel oil is traded as a commodity on the open market and is high right now due to the season we are in. Venezuela has put in the market a large amount of heating oil and that is why you are seeing the price of diesel go down. As for the price, probably not until the market recognizes the benefits of diesel engines, but why do that when they last longer and we would not trade them in as often! So far I've heard, saw, read, or it came to me in a dream that the price of diesel was going up because... * Increased demand in China (and other emerging economies) * Decreased production of crude * Lessening supplies of crude * Expensive crude (harder to get, lower quality) * Greed by OPEC and other foreign oil producers * Greed by domestic oil producers (http://www.consumeraffairs.com/news04/2005/katrina_heating_oil.html) * Republican (Bush) favoritism to (Texas) oil barons * Republican policies angering oil producing countries * Poor forecasting/planning; not listening to the experts * Military demand for the war machine * Refineries already running at 100% capacity * Difficulty (impossibility?) to build new refineries * Shift from nuclear/hydro/coal/etc. power plants to petroleum * Increase in green (solar/wind/etc.) power sources * New petroleum burning domestic power plants * Domestic economic expansion * Increased diesel engine use in automobiles * Increase in lower MPG SUV, 4x4, minivan, and performance model sales * Automobile manufacturers in collusion with oil companies * Forced conservation * Natural disasters * Increase (fed and state) government income due to decrease in other taxes (http://www.taxfoundation.org/publications/show/1054.html) * Simple inflation * Increased labor costs (payroll, health care, other benefits) * More fuel efficient automobiles causing less demand * Changing economy (less industrial/manufacturing) decreasing demand * Changing economy (more high tech/service) increasing demand * Warehouse on wheels (Wal-Mart) inventory management practices putting more trucks on the road * Internet/catalog shopping increasing door-to-door delivery * Consumerism for more electronic/electric devices/appliances * Increased use of petro-chemicals * Global climate change * Cyclical/Normal climate fluctuation * Less air travel; more automobile/RV/train/bus/ship travel * Exodus after 9/11 from cities to suburbs/rural increasing automobile commuters/commuting distances * Build-up in desert Southwest and other areas with large energy demands * Decrease in public transportation * Come to parity with other world economies to stabilize/standardize oil prices * Preparing (cover costs) for ultra low sulfur diesel refining/distribution in 2006 * Investment of oil companies in alternative fuel sources * Alternative fuels cutting into oil companies profits * Eco-rebels forcing more regulations * Aging tanker fleets needing investment in new $$$ tankers * Aging petroleum infrastructure needing investment in new $$$ drilling/refining/distribution equipment * Aging transportation infrastructure needing $$$ investment > When I bought my 2003 6.0L at the beginning of the year diesel cost > less that regular gas. Today it was 15 cents more expensive then > premium gas. > How come? Will it ever be less than regular gas again? > > Simon >When I bought my 2003 6.0L at the beginning of the year diesel cost less >that regular gas. Today it was 15 cents more expensive then premium gas. >How come? Will it ever be less than regular gas again? I doubt it will be less than regular gas, unless of course something happens to disrupt the refineries that make regular gas. One problem no one has mentioned is new lower sulfur requirements going into effect in January. Don't feel bad, though, diesel has about 20% more energy per gallon than gasoline, so you're still probably getting a good deal. Hey, low sulfur was in my list :-) > >> When I bought my 2003 6.0L at the beginning of the year diesel cost less [quoted text clipped - 9 lines] > good deal. > > When I bought my 2003 6.0L at the beginning of the year diesel cost less > that regular gas. Today it was 15 cents more expensive then premium gas. > How come? Will it ever be less than regular gas again? > > Simon Supply and demand. I do not look for it ever to be cheaper again. Current admin pushed for more oil fired power plants when they took office in 2001 and those plants started coming on line in 04 and 05 increasing demand. Thye would not dream of pushing coal plants since we hav a 300 plus year supply of that. I look for diesel to cost evem ore in the future. I heat with heating oil here and it is sky high too. I am thinking of converting to propane next year because it has not skyrocketed. Signature----------------- www.thesnoman.com but, propane $$$ is tied to oil... >> When I bought my 2003 6.0L at the beginning of the year diesel cost >> less that regular gas. Today it was 15 cents more expensive then [quoted text clipped - 11 lines] > too. I am thinking of converting to propane next year because it has > not skyrocketed. You're making that up. Propane and oil are totally non-interchangeable, and equipment-wise the uses are unrelated, so the supply and demand of each, and their prices, are pretty much independent over the short term. > but, propane $$$ is tied to oil... > [quoted text clipped - 13 lines] >> thinking of converting to propane next year because it has not >> skyrocketed. You can read the whole thing http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/propane_price s_brochure/propbro.html but, one of the salient points is "Although propane is produced from both crude oil refining and natural gas processing, its price is influenced mainly by the cost of crude oil. This is because propane competes mostly with crude oil-based fuels" > You're making that up. Propane and oil are totally non-interchangeable, and > equipment-wise the uses are unrelated, so the supply and demand of each, and [quoted text clipped - 24 lines] > > |
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