Diesel Prices, here we go again

[Vaughn MacKenzie]

It's interesting $3. 00 diesel doesn't generate posts like it used to, but lately it's been jumping up again. Typical price here is $3. 09, ranges from $3. 05 to $3. 15 that I saw in Tri-Cities WA today. I thought crude prices had stabilized and started inching down. I guess it's the delayed effect thing or whatever. Maybe it's the cold weather back east. Who knows

 

[BILLVO]

Friend of mine works at a Tesoro refinery and says that the new ulsd requires a lot more refining and added products to lower the sulfer content causing the price to go up considerably. Secondly I heard on the news that there are several large refinerys in the US all shut down for major work at the same time. This is causing supply and demand issues.

 

[Simplysmn]

Sounds to me like the oil companies are filling there pockets with our hard earned money so they can sit back and grin like our so call great president is doing go figure .

 

[SBall]

Last week the Wall Street Journal had an article about the Cantarell oil field in Mexico. This is one of the few "Giant" oil fields in the world and the article stated how the production has dropped off much faster than expected over the last 12 months, despite their efforts to force it out with nitrogen injection. The article outlined similar production data from the other giant oil fields in the world as well. With news like this and that out of Iran, the futures traders on Wall Street are apparently pricing crude oil accordingly.

 

[RGardner]

Seems strange how prices will skyrocket on the futures exchange when something like the capturing of the British sailors takes place but when they are released the price does not come back down accordingly. The flow of oil from the mideast has not been affected by the so called tensions. Just another excuse to gouge the public.

 

[Jdonoghue]

Every time I fill up, I think of the CEO's of the petroleum companies, making their million-dollars-a-day, out on their yachts, enjoying my hard-earned money

 

[ChrisPeterson]

i dont know about now with the ulsd. but two years ago when i went to school my instructor was always talking bout how diesel was less refined than gas. Then why is diesel 30 cents more than gas

 

[MMichaels]

I prefer to think of them standing on the gallows, ready to be strangled with their own entrails...

 

[Vaughn MacKenzie]

i dont know about now with the ulsd. but two years ago when i went to school my instructor was always talking bout how diesel was less refined than gas. Then why is diesel 30 cents more than gas

Things have changed. . . according to this it now costs MORE to refine diesel than gasoline http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

If I read it right it costs 41. 0 cents per gallon for gasoline, and 54. 8 cents per gallon for diesel.

 

[steved]

The latest gasoline spike was due to "shortages of methanol and ethanol"...



What really sucks is the fact our govenor wants to raise the state "gas" tax by 11 cents to cover road improvements... that's make our total "gas" tax 66. 5 cents.



steved

 

[CochranD]

PA roads, worst in nation

I think that . 66 1/2 cents could be a record high ... . for the nation, and still PennDOT still cant plow I-78 when it snows. Not enough money ?

 

[master1578]

I believe in the "holiday conspiracy". Prices just went up in time for Easter travel. Don't be surprised if they slowly come down only to rise again just in time for Memorial Day. I'm sure there's a good explaination but it always looks suspicious.

 

[CumminsBu]

I believe in the "holiday conspiracy". Prices just went up in time for Easter travel. Don't be surprised if they slowly come down only to rise again just in time for Memorial Day. I'm sure there's a good explaination but it always looks suspicious.

Don't forget Spring Break for all the Schools. Up . 50 cents in the last month here.

 

[gmsboss1]

I used to take my wrath at this seeming annual gouging out on the "Big Oil" guys, but after looking at some actual facts, I've now more targets for my annual anger.



The "Big Oil" guys make a profit of just under $. 13 per gallon sold -- either gas or diesel. On a $3 gallon, that's a profit margin of 4. 3%. I wouldn't invest in a company or put my savings anyplace that was only paying 4. 3%, so what's the big deal? Keep in mind that the oil companies have hundreds of Billions ("billion" should always be capitalized, in my book) of dollars invested in the infrastructure that is needed to get the gallon of fuel from miles below the earth's surface, through the necessary refinement, and delivered to your tank.



If you want to really be mad at someone, consider this -- with absolutely no investment at all the Federal Government makes a profit of 18. 4 cents per gallon and every state except Alaska, again with absolutely no investment, makes more than the oil companies on every gallon.



So the next time you hear your favorite politician railing about the obscene profits of the "Big Oil", remember that for every dollar the oil companies make, his company (the Feds, or "Big Gov") is making a dollar and a half. And pity the poor state politicians. For every dollar "Big Oil" is making they are only getting, on average, a dollar and fifteen cents.



There, I feel better. I hope you do, too!

 

[RGardner]

Who do you think builds and maintains the roads that we all drive on? I would like to know where you got the profit figure for the oil companies with Exxon making over 30 billion that is a whole lot of gas for just them! I also know that any company tries to beat down profits as much as possible particularly when they are as obscene as big oil's have been. As for the investment return, lots of people have been investing with that or less for the past several years. Until just recently cd have been paying less than that, and depending on your portfolio you may have actually lost ground the last few months.

 

[steved]

Who do you think builds and maintains the roads that we all drive on?

Have you been to Pennsylvania lately? I have driven DIRT ROADS smoother than most of our interstates and major highways. In a survey report just released, 90% of the bridges in PA will need replaced in the next 5 years... THAT'S A WHOLE LOT OF BRIDGES!!!



While I agree; even at $0. 13, $30B in PROFITS is significant... last economics class I took indicated PROFIT was above and beyond INVESTMENT. I don't soley blame Big Oil, the misappropriation of funds (namely fuel taxes) for other things such as pocket padding, bothers me.



And it really doesn't matter if Big Oil is making a single $0. 01 per gallon of oil, they still made $30B in a SINGLE QUARTER!!!!!!!!!!! Meanwhile, they have invested NOTHING in those aging and failing refineries (and unannounced to the public, been shutting them down as fast as they can... I can name three in my area alone)... we are heading for a nightmare one of these days I suspect. One of these days, we will be paying $15/gallon because one of the three remaining refineries will suffer a breakdown... and we let it happen.



steved

 

[RRees]

For curious minds:



Throughout the U. S, how much money is being spent/has been spent so we can get water to our houses. How much water do we use in a month?

How much is your water bill?



Where I live, I pay $38US for 3000 gallons minimum, which equals . 012$ a gallon.



Of course there isn't a gas tax on that. So add . 40$ to it. That brings it up to approx. . 42$/gallon



Now, I know refining is a little more complex than say your local municipal water treatment plant. However, is there enough to justify a $2. 00 a gallon difference in cost.



I don't know.



Here's my conspiracy theory (one of many). The more cars/trucks that have higher MPG will cause the gas/diesel prices to go up, because of the overall loss of profit.



What really bursts my bubble, is that I wasn't smart enough/had the knowledge to invest in oil company stock when I was much younger.

 

[jcarew]

Hi we as private diesel users are a minority. Looks like the trucking industry has some sort of system to recoup any fuel prices hikes from there customers who in turn pass it on to us the the silent majority. Forget the diesel diesel prices!! we are being programmed daily by the media, an Hollywood to worry about global warming. Its spring fuel prices always go up about now. what can you expect when your enemy controls your fuel supply. It does get discouraging when there are so many things that affect our lives lives in a bad way , that we can do nothing about. whatever happen ed ed to the population explosion, that was the last planet destroying problem problem the masses were supposed to be worrying about. Sorry for the rant bad morning I guess.

 

[steved]

What really bursts my bubble, is that I wasn't smart enough/had the knowledge to invest in oil company stock when I was much younger.

I do not know what its worth, but I have some Pennzoil stocks from the 1940s... :-laf I inherited them from my grandmother about 5 years ago... probably useless, but funny none-the-less. I have them into an accountant being "researched" to see if they have any value.



If you think about it, there are a lot of things we pay more for... a 2-liter of soda is $1. 59. A gallon of milk is $2. 50. What bothers us about gasoline is the fact we use 25-gallons every three days (myself as an example)... we can do without milk; but without gas, we do not get to work to pay for the gas to get us to work and to put the milk on the table.



steved

 

[steved]

Looks like the trucking industry has some sort of system to recoup any fuel prices hikes from there customers who in turn pass it on to us the the silent majority.

Ahh, yes. The "fuel surcharge"... This is nothing more than a way for shipping companies to keep their rates low and still bill the snot out of you... IMO, if you have not adjusted your rates to reflect the increased fuel cost by now, then you are doing nothing but gouging. I refuse to use a company that has a "fuel surcharge" spelled out in their costs. I know there are ones that I do not see, but I avoid those that show it.



steved