What oil companies do is what every retailer in every industry does.
Oil companies do have reserves of finished products, diesel fuel and gasoline, in storage tanks to keep a continuous supply available and flowing.
But they know that they will pay a far higher but yet unknown price for crude oil to replenish current stocks. So it is just normal business practice in any industry to increase the price of current inventory in order to provide the capitol to purchase replacement raw material supplies.
Do you REALLY think that the oil companies just have fuel laying around in storage tanks waiting for the price to go up so they can sell what they have in storage for some absorbent price gouge. Thats really funny the little rack that I pulled out of ran thru 1 1/2 million gallons a day thats 24 hours. They had 4 facilities ours was the least amount pumped in 24 hrs. So think about the above statement and really think about how many tanks and how big they would have to be. I dont agree with whats going on Im sure they are making a profit but im also sure its not as big as one might think. But just to defend myself ill make it JMO. As a edit I went down to the refinery the other day for a retirement party for one of the big wigs. Went out to the plant to say hi to some of the refinery guys. They are in the process of building more molecule crackers for JUST diesel. One of the guys said that 2 of the 4 are for the, well I dont know how to put this but some folks wouldnt light their trash pile with the stuff. BIO D. Like it or not its going to happen just like Ethanol did and even thats going up in gas. You just cant build these things in a day its taking time with all of Commie Cal's regs for green
Did the worlds demand for diesel suddenly surge????
Yes, it has. IIRC, over half the vehicles sold in Europe today are diesels. European emissions standards and taxation policies encourage the use of diesels as they generate less carbon dioxide than gasoline engines.
Duh. Too bad the idiots running the show here in Ca seem to believe that diesel is suddenly toxic and is the cause of Asthma in young children and creates (X) amount of pre-mature deaths yearly.
Anything and everything the government touches turns to crap. The last thing I want to see if government subsidized fuel or anything else.
Who do you think would pay for the subsidies you propose?
Gail,
Apparently you don't understand what I wrote.
All the above still dosen't prove why diesel has gotten to be so exspensive compared to it's pricing history.
Is it because light duty diesels became so popular and there are/were too many ding dongs driving diesels in the US?
Did the worlds demand for diesel suddenly surge?
???
IMO the reason diesel is more $ is because when they make gas somewhere along the process they come up with diesel. When they take the diesel out of the process they have to start making gas from scratch again go past the diesel in the process and make gas. And because there are more gas motor cars than diesel they charge more for the diesel because they have to stop making the more popular gas. Did that make any sense. They are building more diesel crackes just for diesel thats where the process will stop so they arent taking up the gas space in the process, MAN I GOT TO QUIT MAKING MY OWN BEER THIS STUFF SHOULD HAVE A WARNING ON IT
Anything and everything the government touches turns to crap. The last thing I want to see if government subsidized fuel or anything else.
Who do you think would pay for the subsidies you propose?
I was told a couple of years ago by a Marathon Petroleum refinery worker, that ULSD costs more to make, that is why it costs more at the pump. I don't know weather there is any truth behind that or not. It sounds more like an excuse than anything.