diesel less than gas

[WyattEarp]

Passing The Buck!!!!

well this is one of the most important ones i have posted, i love reuters news, instead of them taking it on the chin, like they can't afford to just read this article...

NEW YORK (Reuters) - The average U. S. retail gasoline price rose 19 cents over the past three weeks to a fresh record high just below $2. 29 a gallon, an industry analyst said on Sunday.



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But the price that U. S. motorists pay for gasoline at the pump may be peaking, Lundberg survey editor Trilby Lundberg said, because gas prices have caught up with recently skyrocketing crude oil prices, which slid in the past week.





The national average for self-serve regular unleaded gasoline was nearly $2. 29 a gallon on April 8, up about 19 cents per gallon in the past three weeks, according to the nationwide Lundberg survey of about 7,000 gas stations.





The latest average retail gasoline price beat the previous all-time high on March 18 of nearly $2. 0997 per gallon.





"The reason that gasoline prices surged another 19 cents was that gasoline was catching up to earlier crude oil price hikes and refiners were passing on higher costs for manufacturing gasoline," Lundberg said.





For example, the price of West Texas Intermediate (WTI) crude oil had increased about 8 cents per gallon between March 4 and April 1.





But Lundberg said that because crude oil prices fell last week, gasoline prices might be peaking.





"If crude oil prices do not rebound, then gasoline prices might be drifting down from here," Lundberg said, citing the price of WTI crude futures.





U. S. crude oil futures for May delivery hit a record $58. 28 a barrel last Monday and then slid almost $5 from that peak to settle on Friday at $53. 32, on the New York Mercantile Exchange. A week earlier, on April 1, the WTI May crude contract ended NYMEX trading at $57. 27 per barrel, the highest settlement price for a spot-month contract since the exchange launched oil futures trading in March 1983.





Lundberg said gasoline prices had also been rising because drivers were heading out of the seasonally weaker winter months into spring and summer, when demand typically rises.





She also said that refiners had been passing on the higher cost of regulations to consumers at the pump.

"A great deal of the added refining costs has been passed through to the pumps and is being passed through. How much more refining cost must be passed through to the pump is not known," Lundberg said.





At $2. 62 a gallon, Bakersfield, California had the highest average price for self-serve regular unleaded gasoline, while the lowest price was $2. 06 a gallon in Newark, New Jersey -- but Lundberg noted that price was not strictly a direct comparison, as New Jersey offers no self-serve gasoline

 

[CoastyAV8R]

Must have misunderstood as the process list you have makes perfect sense as it goes from lightest (gaseous) to heaviest (Tar). Perhaps he was talking about the refinement process needed to bring it to market.

 

[Elite1]

Diesel is cheaper to refine than Gasoline, so it is a little less expensive product than gasoline. The problem with pricing is the fact that about 25 years ago (off the top of my head) the federal government stepped in and decided to tax diesel at a higher rate than it taxes gasoline. We pay 33% higher federal tax at the pumps than gasoline consumers do. State taxes are the same. So if you pay 27 cents a gallon in Fed. tax for gasoline, that means the tax for diesel is 40 cents!

The Feds said at the time of the tax increase, that since big rigs do more damage to the roads, because of their weight, which require resurfacing maintenance etc... we will slap a higher tax on their fuel.

 

[jimnance]

Diesel should always be cheaper, because it requires less refining. Drives you nuts when they charge you more for diesel than gas (gouging)!

Typically, diesel does rise in the winter when the demand for heating oil, which is a very similar product is very high. What is unusual this season is that diesel surpassed gasoline in price by a large margin. In the PNW they claim it was caused by refinery problems. In any event, I expect that diesel prices have peaked and may retreat somewhat as we head into the summer. This assumes that crude continues trading in the $55. 00/bbl range.



Soon, with the summer driving season approaching, gasoline prices will shoot ahead of diesel prices. This is not really good news at all as diesel will remain fairly high by historical standards. Unless crude prices move a lot lower I expect that prices for regular unleaded will approach $3. 00 in some of the high price markets, like California, as Memorial Day approaches. Diesel will then be cheaper than gasoline.

 

[DBond]

Diesel is cheaper to refine than Gasoline, so it is a little less expensive product than gasoline. The problem with pricing is the fact that about 25 years ago (off the top of my head) the federal government stepped in and decided to tax diesel at a higher rate than it taxes gasoline. We pay 33% higher federal tax at the pumps than gasoline consumers do. State taxes are the same. So if you pay 27 cents a gallon in Fed. tax for gasoline, that means the tax for diesel is 40 cents!

The Feds said at the time of the tax increase, that since big rigs do more damage to the roads, because of their weight, which require resurfacing maintenance etc... we will slap a higher tax on their fuel.

In 2002 the federal tax on gas was 18. 4 cent and on diesel 24. 4 cents. Yes that is 33% more for diesel, but diesels get about 33% more mpg than a compareable gas engines, so both are paying the same in road use tax per mile driven.

 

[klenger]

In 2002 the federal tax on gas was 18. 4 cent and on diesel 24. 4 cents. Yes that is 33% more for diesel, but diesels get about 33% more mpg than a compareable gas engines, so both are paying the same in road use tax per mile driven.

This logic does not take into effect that a semi truck is getting maybe 5 MPG (WAG) vs 20 - 30 MPG for a gasoline power passenger car. In AZ, trucks over 26K pay an additional $0. 07 per gallon in taxes more than we pay for fuel for our trucks.

 

[DBond]

Klenger



You are absolutely right, I didn't deal with the difference between semis and cars. I only covered otherwise comparable vehicles, like a Ram 2500 hemi and CTD, they are both paying roughly the same road tax per mile, and doing the same road wear. That part seems fair.



Semi's certainly pay more tax per mile than passenger vehicles, and also put more weight on the road. And I have no idea if the tax paid correlates to road wear.



Now toll roads are a another story, I feel I am paying for the road twice.

 

[Blakers]

Diesel is cheaper to refine than Gasoline, so it is a little less expensive product than gasoline. The problem with pricing is the fact that about 25 years ago (off the top of my head) the federal government stepped in and decided to tax diesel at a higher rate than it taxes gasoline. We pay 33% higher federal tax at the pumps than gasoline consumers do. State taxes are the same. So if you pay 27 cents a gallon in Fed. tax for gasoline, that means the tax for diesel is 40 cents!

The Feds said at the time of the tax increase, that since big rigs do more damage to the roads, because of their weight, which require resurfacing maintenance etc... we will slap a higher tax on their fuel.

We pickups SHOULD then be able to get the difference in tax money back from the feds. :-laf

 

[BBean]

We are paying about $2. 70 a gallon up here, and I think the only reason that desiel is so high is that we all have pickups with the desiel and all the small business's have small trucks with the desiels, and so they are going to get all they can from us. The news the other night said it's a done thing to expect to pay over $3. 00 before the years is out. STINKS!!!!

 

[Blakers]

Diesel prices starting to drop off around here. This morning Flying G was $2. 199, down 2 cents from last night.

 

[GCross]

The news the other night said it's a done thing to expect to pay over $3. 00 before the years is out. STINKS!!!!

That's what we're hearing down here in L. A. too. It seems that those in the East and South are getting a break, but on the West coast we're getting stiffed.



-George-

 

[jwduke]

Didn't there use to be a deduction on federal income taxes, for buying a diesel powered vehicle?

 

[Buzzer]

That's what we're hearing down here in L. A. too. It seems that those in the East and South are getting a break, but on the West coast we're getting stiffed.



-George-

$2. 55 here and rising about 5 cents a week is not what I call getting a break. Maybe in other areas but not in the NY Long Island area.

 

[b.h.h]

2. 38 last I looked thats not a break in Ohio. I hope someone is enjoying a break.

 

[NickAnderson]

Its all TAXES guys

Off road diesel fuel, which is the same as regular diesel fuel averages about 60 cents a gallon cheaper because of no tax. Diesel fuel is taxed more than gasoline, by about 20 cents, go look at the pumps and you'll see. In PA diesel was taxed 60 cents a gallon, while gasoline was taxed at 44 cents. Its not right, especially when diesel fuel, is less refined and basically a bi product of gas.

 

[DHayden]

Saw it for $2. 19 the other day, most are 2. 25

 

[KHogan]

I'm currently paying $2. 13 at the local station (Mobil) in Belle Mead, New Joisey. I have seen it for $2. 07-$2. 09. Even the Sunoco on the NJ Turnpike (SB @ rest stop near exit 11) had it for $2. 09! It's still highway robbery, but Bush is laughing all the way to the bank.



BTW, gas is still cheaper @ $1. 97 for regular 87 octane (all grades except premium 93-94 octane... at most stations, that is)

 

[DBond]

Off road diesel fuel, which is the same as regular diesel fuel averages about 60 cents a gallon cheaper because of no tax. Diesel fuel is taxed more than gasoline, by about 20 cents, go look at the pumps and you'll see. In PA diesel was taxed 60 cents a gallon, while gasoline was taxed at 44 cents. Its not right, especially when diesel fuel, is less refined and basically a bi product of gas.

I don't think off road fuel is the same, it has high sulfur and so less processing. As pointed out no road use tax too, the tax pays for the road and doesn't relate to refinery costs.



My question is why the flip from diesel cheaper than gas, to gas cheaper than diesel? The national tax rates haven't changed for years. (state taxes very greatly from one state to another) so taxes aren't the reason diesel has recently become higher than gas.



I am new to this, hopefully will be pumping my 1st tank of diesel within a week.



What is the typical trend in diesel vs gas $ thoughout the year?

I understand diesel prices go up with winter blends and from heating oil demand that comes from the same faction at the refinery, and reduces supply. But does diesel typically get higher than gas in winter? When do prices typically switch back to to a normal relationship?

 

[Buffalo]

I just got on the Flying J website and diesel (auto) is $2. 05/9. It's $2. 30-$2. 40 per gal. at regular gas stations near my home. This is in Phoenix, AZ. If you get a Flying J Frequent Fueler card, you get an extra penny off per gal. plus the convenience of not having to pre-pay, if you are a cash buyer.



I do believe a lot of us are getting screwed by the oil company's. As an example of this: Two summers ago, we had a major fuel delivery line, owned by Kinder Morgan, burst between Tucson and Phoenix. There was quite a fuel shortage around here and, probably, half or more of the gas stations ran out of fuel. Some stations were charging $5. 00/ gal.

After the line was fixed, the fuel prices started coming down to the reasonable level.

What really surprised me was, a few months later, I called a performance diesel shop in Southeastern Washington about some of their products. During the conversation, I mentioned that I was from AZ, and the guy I was talking to started getting angry. I asked him what the problem was and he said that diesel prices shot up in their area when the AZ pipeline broke but, their prices had not come down yet. AZ prices were back to normal but, WA prices were still abnormaly high.



This was a local problem in a small part of AZ. Other parts of AZ were not having fuel delivery problems. Just the Phoenix area. The state of Washington should not have been affected, at all.

I believe the WA dealers saw an opportunity to screw their customers and took advantage of it.



It kind of makes you wonder why some folks get so upset with the oil companies.



Joe F. (Buffalo)

 

[posey-smoker]

Diesel and gas in Mount Vernon, Indiana are $2. 08 per gallon.