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Car Forum / Driving, Maintenance, Tuning / RVs / April 2005Why is diesel fuel so expensive?
Last year in New England, diesel fuel cost a couple of cents less than regular gas. Now it costs a dime more than premium. What's behind the spike in price - any ideas? > Last year in New England, diesel fuel cost a couple of cents less than > regular gas. Now it costs a dime more than premium. What's behind the > spike in price - any ideas? === Demand! Whatever the market will stand. Geoff. > Last year in New England, diesel fuel cost a couple of cents less than > regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 5 lines] > Newsgroups > ---= East/West-Coast Server Farms - Total Privacy via Encryption =--- I believe its tied to heating oil demand and prices. Makes diesel go up in the winter and down in the summer. We had similar price swings in VA between last summer and winter. Hopefully the pattern will reoccur this year as the weather warms up. Paul >> Last year in New England, diesel fuel cost a couple of cents less than >> regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 13 lines] >warms up. >Paul I've noticed that the price of diesel hasn't dropped here on the South Side of Tidewater, but the differential between diesel and gas is getting smaller. > > Last year in New England, diesel fuel cost a couple of cents less than > > regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 13 lines] > warms up. > Paul How about greed among speculators that drove up the spot market in crude without any decrease in inventory. The bubble is bursting (as predicted about a week ago on CNBC) but it will take much longer for the price reduction to be seen. Price increases occur almost instantaneously, but decreases are much slower. Also, we do not have an administration that is likely to ask big oil why they are so slow to lower prices. There was no really cold winter this year, just a lot of speculation that there would be, so naturally the price goes up and the consumer is screwed as usual.  SignatureFigment We need more imagination and less reality >Last year in New England, diesel fuel cost a couple of cents less than >regular gas. Now it costs a dime more than premium. What's behind the >spike in price - any ideas? Hi, Demand for diesel and heating oil and gasoline. The refineries don't produce gasoline and heating oil and diesel at the same time. When stocks of one or the other get low prices tend to rise because it takes time to switch over from producing one or the other. Also with diesel fuel the change over to low sulphur diesel production at the refineries cost big bucks. So diesel prices are higher because of that. It costs more to make a gallon of diesel now then it did a few years ago. Diesel is no longer going to be the cheapest fuel around. Take care and Happy Campin... RichA "We Get Too Soon Olde and Too Late Smart" > >Last year in New England, diesel fuel cost a couple of cents less than > >regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 5 lines] > When stocks of one or the other get low prices tend to rise because it > takes time to switch over from producing one or the other. The impression I get from several retired refinery employees is that they get gasoline, diesel, fuel oil and many other products all at the same time. Different products come out at different points in the refinery process. > Also with diesel fuel the change over to low sulphur diesel production > at the refineries cost big bucks. So diesel prices are higher because > of that. It costs more to make a gallon of diesel now then it did a > few years ago. Diesel is no longer going to be the cheapest fuel > around. >> >Last year in New England, diesel fuel cost a couple of cents less than >> >regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 15 lines] >> few years ago. Diesel is no longer going to be the cheapest fuel >> around. Hi Ron, Your right of course refineries produce gasoline and diesel at the same time, but not in the same volume per barrel of oil. Also there is summer and winter grade gasoline now that requires different formulations, with the summer fuel being more expensive to produce. Which causes some price volatility. According to the DOE you can get 19 gallons of gasoline out of a barrel of crude and about 9.5 gallons of diesel/heating oil. So it looks like it's demand and seasonality and availability of refinery capacity. Thanks for catching that. I'm learning more then I ever wanted to know about refineries between this thread and the fuel prices one :) Take care and Happy Campin... RichA "We Get Too Soon Olde and Too Late Smart" >>Last year in New England, diesel fuel cost a couple of cents less than >>regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 14 lines] >Take care and Happy Campin... >RichA Thanks to all who replied. I didn't realize the manufacturing process had changed by a low-sulphur fuel requirement, and that may be the most significant factor driving the price increase. I used to heat my home with oil and had two 300 gal tanks in my basement. I would fill up in the summer when prices were at their lowest, and that would take me through most of the winter. Now I may have to do the same thing with diesel fuel. As of today Hattiesburg MS Regular at Sams $2.14 Diesel at BP $2.06 regular $2.16 so diesel deems to be dropping below regular finally. Good thing we will be headed for D.C. in 5 weeks. I had a Chevy crewcab 2500 that got 12mpg on Regular towing my KZ hybrid My Chevy 2500 crewcab diesel gets 16 MPG pulling;ling the same trailer. >>Last year in New England, diesel fuel cost a couple of cents less than >>regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 15 lines] > RichA > "We Get Too Soon Olde and Too Late Smart" > Last year in New England, diesel fuel cost a couple of cents less than > regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 3 lines] > http://www.newsfeeds.com The #1 Newsgroup Service in the World! >100,000 Newsgroups > ---= East/West-Coast Server Farms - Total Privacy via Encryption =--- A lot depend upon where you live as to diesel fuel price as compared to gasoline. In many places it has been higher for a number of years. Here in the PNW a month ago it wasn't hard to find diesel fuel selling for $.75/gal more than reg UL. Now closer to $.40-.50. Diesel fuel has more road tax on it than gas. Not much diff in diesel fuel and heating oil. The long cold winter in much of the country has forced more of the distillate to go for heating. We didn't have a cold winter but oil was shipped East for help out with the heating oil needs and that contributed to the big rise in diesel fuel price. Mickey > Last year in New England, diesel fuel cost a couple of cents less than > regular gas. Now it costs a dime more than premium. What's behind the > spike in price - any ideas? China's consumption has gone way up. Plus crude oil keeps getting harder and deeper to get at. There are VAST coal fields in the US, but I think it's about $8 a gallon that it can be turned into gasoline. If we didn't mind strip-mining half the country, as well. > China's consumption has gone way up. Plus crude oil keeps getting harder > and deeper to get at. There are VAST coal fields in the US, but I think > it's about $8 a gallon that it can be turned into gasoline. Western Colorado has more oil reserves than the Saudi's, but it is in shale. Chevron started a process in the 70's to extract it and sudden shut down. Their excuse was they needed $25 a barrel to make it economical. It is still sitting there untouched. Maybe someone should tell them?? >> Last year in New England, diesel fuel cost a couple of cents less than >> regular gas. Now it costs a dime more than premium. What's behind the [quoted text clipped - 3 lines] > and deeper to get at. There are VAST coal fields in the US, but I think > it's about $8 a gallon that it can be turned into gasoline. > Western Colorado has more oil reserves than the Saudi's Uh, that's pretty fantastic so I won't even ask. > but it is in shale. > Chevron started a process in the 70's to extract it and sudden shut down. > Their excuse was they needed $25 a barrel to make it economical. It is > still sitting there untouched. Maybe someone should tell them?? It should remain untouched. $25 in 1975 inflates to $93.64 today. http://www.westegg.com/inflation :) JR > Western Colorado has more oil reserves than the Saudi's, but it is in shale. > Chevron started a process in the 70's to extract it and sudden shut down. > Their excuse was they needed $25 a barrel to make it economical. It is > still sitting there untouched. Maybe someone should tell them?? Very reciently they've been talking about using a specially built nuclear power plant to generate the heat to extract oil locked up in one big oil field. Be the first nuclear plant built in what, 30 years? I'll bet they build it so it so after the work is done it will go to work generating electricity. Many don't realize that there was an underground nuclear test, 50's-60's period, in the Parachute area in Colorado presumably to see if they could extract natural gas afterwards. That's different from a nuclear plant however. >> Western Colorado has more oil reserves than the Saudi's, but it is in >> shale. [quoted text clipped - 7 lines] > bet they build it so it so after the work is done it will go to work > generating electricity. Plus the military machine uses huge amounts of diesel everywhere there is activity. Have you ever seen a military vehicle going down the highway? Always pouring smoke out meaning it is running really rich mixture. Gives more power but costs us! >Last year in New England, diesel fuel cost a couple of cents less than >regular gas. Now it costs a dime more than premium. What's behind the >spike in price - any ideas? It varies. One thing to consider: diesel has about 20% more energy per gallon than gas, makes the price seem better if you look at it that way. |
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