how the oil companies feel about diesel owners

[lil red cummins]

i have started an email writing campaign to the local TV stations and oil companies to try and find out why diesel fuel costs so much. as we ALL know, there is no logical reason that diesel should cost more than gas.



i hope that some of you will be mad enough to send emails to some of the other oil companies to let them know we are not happy. please post their responses so we know where we stand.



this may do no good in the end, but i feel our voices need to be heard in order to affect any change at all.



the following is the first email i fired off to Speedway/Superamerica:



[beginning]

as an owner of a dodge cummins diesel truck, i am extremely

distressed at the outrageously high price of diesel fuel at your

stations. how can you justify the high cost of diesel, in relation to

gasoline, when it costs less to refine than gas?



diesel is currently $1. 05 MORE than gasoline at your station at Route 82

and Prospect Rd in Strongsville Ohio. There is no way this represents

the true cost of production.



i believe you are taking advantage of diesel fuel users simply because

we are not as big a "voice" as gasoline vehicle owners.



i nor any of my friends that own diesels will be buying any fuel or

gasoline at your stations until your diesel prices come down to some

reasonable relation to gasoline prices.



sincerly



Jim Heinrich

[end]



as to the last paragraph, you would have to be crazy to pay 3. 49/gal when down the street it is around 3. 29

 

[lil red cummins]

their first response is as follows:



[beginning]

October 23, 2005



Dear Mr. Heinrich,



Thank you for inquiring about the retail diesel prices.



All of us associated with Speedway SuperAmerica are committed to

providing our customers with quality products at competitive prices and

with friendly, efficient service.



As you are well aware there are many factors that affect the prices of

gasoline and diesel fuel alike. Diesel prices have steadily rose over

the past 12 months, and the number one factor is the obvious rise in

crude oil. There has also been several supply disruptions in the past

year, and refiners have been forced to make a choice as to maximize

gasoline production. In so doing, the inventory levels on diesel fuel

have been nearly depleted. In addition, U. S. demand for diesel fuel has

grown at a rate of nearly 6 percent in the last 18 months, compared to a

growth rate of 1. 8 percent for gasoline. Demand in many industrialized

nations in Asia such as China, India and Thailand is growing at rates

that rival that of the U. S. Worldwide, diesel fuel is much more in

demand than motor gasoline.



I hope I have at least addressed some of the issues that you have in

regard to diesel prices.



We appreciate your patronage and concern in this matter.



Sincerely,



Customer Service

[end]

 

[lil red cummins]

my response to their email is as follows:



[beginning]

thank you for your response. it is obvious that you have a good handle on why the price of diesel is so high. you have addressed the issues, but i feel as though I, as well as thousands of other private diesel owners, will see no change in the way SSALLC will conduct their business. is this true?



let me restate my position so that i have a better understanding of your position.



i understand that the cost of crude has increased. however, how is it possible that gasoline prices have been coming down over the last month, but diesel keeps rising? could it be because the news media has been whining about the high price of gasoline which gives the oil companies "bad press" and at the same time, there is no mention of the high price of diesel? so therefore, stick it to the diesel owners because the news media will not cover that item.



as to your "maximizing gasoline production". since you are so "in tune" with what the consumer wants, how about making a slight change in production to maximize diesel fuel output? that is what I want as a consumer!!!!



after all, gasoline prices are down now, which MUST mean demand is down, so you should be able to shift more crude to diesel production. since you sight a 6% increase in the use of gasoline, would not the answer certainly be to increase diesel production by a minimum of 4. 2% (the difference in increase between gas and diesel usage) and reduce gasoline production by 1. 8% to keep total OUTPUT at a comparable level to the DEMAND?



yes, i understand there is a limited total of crude available for refining. it still gets down to one fact. diesel costs less to produce at the refinery level because it comes out earlier in the refining process. unless you have drastically changed the way oil is refined in the last 50 years, there is no LOGICAL reason that diesel should cost more than gas at the pump. unless you can point me to scientific data and refinery output statistics that state otherwise, i will NEVER believe diesel should cost more at the pump than gasoline. also, i know that there will be new (EPA Mandated) diesel fuel requirements for 2006. does this mean that we will be paying EVEN MORE for diesel than we do now????



simply stated, this is one consumer that is not satisfied with the disparity between gas and diesel prices. i feel as though i have been punished for buying a more efficient and yet more costly vehicle. my instincts at this point are to buy a cheaper, more oil thirsty gasoline truck. how would this help the environment and how would it help reduce the dependency on oil as our government has said we should do?



does this mean that because i care about the efficiency of my truck and that i care about the environment, that i have to suffer for being that way?



please also know that SSALLC is not the only oil company that i will be emailing on this subject.



as to the increased demand for oil in the foreign countries such as Asia, should that not be an issue for where your loyalties as an American oil company lie? if you are truly a loyal American company, how about making sure that Americas' oil needs are met first and foremost and that every consideration is given to fair diesel fuel pricing at the pump first, before supplying foreign countries.



sincerely,



Jim Heinrich

[end]



i await response to this email

 

[Gary - K7GLD]

I have been increasingly tempted to start my own small letter writing campaign, focusing upon irritation over seeming irrational pricing of fuels at the pump.



At first, I thought a large number of letters arriving daily on the White House doorstep would get some attention - but THEN I realized even MORE action and attention would result if those bags full of letters were written as "open letters to the current administration", and sent to NBC, CBS and all other major media headquarters - they are always looking for new ways to embarrass Bush, and would likely jump at the chance to place these letters prominently in their newscasts - and that MIGHT generate more focused attention to the issue - maybe even some action...

 

[wtfd6]

i have often wondered why speedway's fuel is always twenty cents more than everyone elses. do they think their fuel is superior?



mark

 

[Smokin_Monster]

My question would be why the heck was diesel somewhat comparable to gasoline (yet still more expensive) before Katrina then shot through the roof after katrina and has continued to go up? I can understand the price going up a little when refineries are down. but then they should go back down to the current supply/demand equlibrium. I don't believe for one second that demand for diesel has risen THAT much since katrina to be more expensive now that the refineries are running again. How stupid do they think we are?

It seem to me that they are sticking it to those who need diesel to make a living and those that are trying to do their part by having more efficient vehicles. Sounds like terrorism to me!..... maybe I will write a letter or two!

 

[Mhannink]

give me some emails and ill speak out every voice counts also maybe mention this site if they see how many ppl nation wide there are maybe they will change

 

[SBall]

Yes, diesel is high priced as compared to gasoline, but is it "high-priced diesel" or "low-priced gasoline". A few articles I read last year described how oil companies in the US had been exporting diesel to Europe, and inporting gasoline from Europe in exchange. I then read where the practice of exporting distillates had stopped at least for awhile to build up reserves for the heating season. Last week the Wall Street Journal had a piece that mentioned the US is importing gasoline from Europe at the rate of 1. 4 to 1. 5 million barrels a day!, so I can't help but think we're still trading distillates with the Europeans to some degree to manage the trade deficit. I can't help but think that an extra 1. 5 million barrels of imported gasoline in our supply chain is bound to lower the price of gasoline here. This could partially explain why gasoline is so much cheaper that diesel here. As far as the administration's involvement, perhaps there are more voters driving gasoline-powered vehicles to work here than diesel-powered vehicles. It's a complex issue no doubt.

 

[jaynes]

All I know is...

that soon, if these outrageous don't come down, I'm gonna have to park my vehicle because lately, I've only been able to afford paying no more than $20 at the pump (cause i'm a broke college student). You know how much $20 gets me?? About 5. 5 gal. $20 USED to get me between 12-13 gal . This is rediculous. Talk about price gouging?? I think I'm defiantly going to be sending some letters to MFA and Break Time. Maybe if we all put together a massive boycott?? Hehe, just ideas...

 

[DragonflyDriver]

- they are always looking for new ways to embarrass Bush, ...

They really don't have to look very hard. I actually think that they've showed some restraint. I watched the NBC, CBS, and ABC news regarding the scripted talk he had with the military on the 13th. I have since found a clip from this that would make you wonder when the Pres. experienced his obvious blunt-force trama to the head, stroke, or oxygen deprivation event. All presidents are puppets, but this one eclipses them all.

 

[Turboman]

They are sticking it to diesel users because a majority of the diesel used in this country is used by industry; Trucking, mining, farming, transportation, etc. All these MUST HAVE IT! They know this, so there for they keep the price high. The trucking industry will get the fuel surcharge to pay for the extra cost of fuel. A good portion of the gasoline is used by John Q. Public, who if he can't afford it will find ways to cut down on usage or pay it. The other kicker is that the end consumer is paying the high cost of both. Higher diesel price means higher groceries and other goods which we all must have.

 

[lil red cummins]

good to know i have support.



i have refined my letter somewhat and here is what i sent to Sunoco today.

sorry that some of this is repeated, but it was easier than doing a cut and paste job of the changed elements only.



[beginning]



Dear marketing department:



As an owner of a Dodge Cummins diesel truck, I am extremely distressed at the outrageous price of diesel fuel at your stations. How can you justify the high cost of diesel, in relation to gasoline, when it costs less to refine than gas? Have you changed the way oil is refined in the last 2 years, at which point diesel started costing more than gas?



Diesel is roughly $1. 10 MORE per gallon than gasoline at your station at Route 82 and Route 83 in North Eaton, Oh. There is no way this represents the true cost of production.



I understand that the cost of crude has increased. With that in mind, how is it possible that gasoline prices have been coming down over the last month, but diesel keeps rising? Could it be because the news media has been whining about the high price of gasoline which gives the oil companies "bad press", and at the same time, there is no mention of the high price of diesel? So therefore, stick it to the diesel owners, because the news media will not cover that item.



I and many of my friends that own diesels will avoid buying any fuel or gasoline at your stations until your diesel price comes down to some reasonable relationship with the price of gasoline.



I am actively looking for the first oil company to price diesel fuel fairly. That company will most likely be noticed quickly, due to the sites that post daily diesel fuel prices.



If you wish to see how much the high price of diesel is being talked about, please visit the following sites:



www.turbodieselregister.com

www.dieseltruckresource.com

www.oilburners.net

www.dieselram.com

www.thedieselstop.com

www.dieselplace.com



Disclaimer:



Mention of these sites in no way means they have endorsed or recommended my personal email. Nor have they taken part in or condone any letter writing campaign to oil companies. Website names mentioned in this letter are available to the general public for viewing.



This is my personal expression only, but may be viewed by many. The mention of these sites is only made to help you understand how many private and small business diesel owners are out here. We bought our trucks because we love the diesel engine and its efficiency. Please help us to regain our cost effective operation.



Thank You,



My Name

[end]

 

[lil red cummins]

since the last posting, i have continued to send out revised letters to BP/Amoco, Sunoco and others.



Finally today i received a reply from BP and it is as follows:



James,



In response to your e:mail message, Autumn historically is a higher demand period for agricultural markets like the Midwest due to harvesting activity.



Per Global Fuels Technology, globally, China and India are the fastest growing importers of fuel. The increase in demand is growing faster than oil

production. In a world of supply vs demand, the end result is increases in energy costs.



Plus the information we have from the refineries is the following:

Increase heating oil production for the winter season.

Production down due to hurricanes.

Extra refining costs are being passed to the consumer for EPA mandation of lower sulphur levels.

EPA forced large industrial sites to lower emissions, therefore many electrical generation stations and other industrial fuel consumers have switched

from coal to natural gas and heating oil.



Thank you for your inquiry-



Judi Kramer

Customer Solution Center

Consumer Relations

800-333-3991

 

[R-N-R]

EPA forced large industrial sites to lower emissions, therefore many electrical generation stations and other industrial fuel consumers have switched from coal to natural gas and heating oil.

I have a relative who is a Merchant Marine currently working the Great Lakes. He told me that many of their coal customers are switching over to natural gas, thus negatively impacting the shipping industry.

 

[Mike Ellis]

From Speedway:

In addition, U. S. demand for diesel fuel has grown at a rate of nearly 6 percent in the last 18 months, compared to a growth rate of 1. 8 percent for gasoline. Demand in many industrialized nations in Asia such as China, India and Thailand is growing at rates that rival that of the U. S. Worldwide, diesel fuel is much more in demand than motor gasoline.

From BP:

Per Global Fuels Technology, globally, China and India are the fastest growing importers of fuel. The increase in demand is growing faster than oil production. In a world of supply vs demand, the end result is increases in energy costs.

We have had many threads on the forums where we discussed the probable outcome of America's current fad for offshoring / outsourcing jobs and manufacturing to China, India, etc. When we buy their products, we are building THEIR economy and infrastructure to the point that they compete with us for scarce resources like oil, diesel, steel, etc.



We, the American consumers, are directly responsible for a good part of the increase in fuel costs. As long as we continue to support the overseas economies at the expense of our own, we will be hostage to the forces of supply and demand in a market that WE created. The oil companies are only doing what the American consumer has told them to do: "Sell the Chinese more diesel so they can keep manufacturing cheap products for us!"



Buy American, employ American, keep our country strong.

 

[RailroadJim]

I'll second that.

 

[lil red cummins]

good points mike



i hadn't thought about it in that context, but it does tend to make sense.



as an american manufacturer myself, i definately feel the need to buy american and be willing to pay more if made in america.



all that aside, i have a hard time believing that so much more diesel is being exported, that it has driven the cost to where it is.



funny thing though, the speedway station (i mentioned in my first letter to them), has all of a sudden dropped their diesel price from 3. 39/gal to 2. 89/gal. that is a significant one day drop. for what ever reason, i am happy to see it coming down.



jim

 

[BErmoyan]

I don't care how fast India and China's need for fuel is growing. They can't afford to pay a fraction of the price we pay for fuel, and the companies can't be making their big dollars there. Maybe people will realize that everything that keeps this country moving runs on a diesel engine, but it looks like it will take price hikes in everything for that to happen.

 

[Drewhenry]

I think that the independent truckers need to strike like they did back in 1996(someone feel free to correct if date is off). If I recall that prompted a major reduction in the cost of diesel fuel.

 

[DHayden]

I think that the independent truckers need to strike like they did back in 1996(someone feel free to correct if date is off). If I recall that prompted a major reduction in the cost of diesel fuel.

That's a good idea except for the fact that just like everything else, big companies have pushed allot of owner operator's out of business. We have been driving mom and pop out of business for the lower prices of the big companies and now we are reaping the benefits. I think allot of people are realizing that and maybe change their ways, but the youth has the lion's share of most markets and they just don't understand (most of them).



I think it's up to us to talk to our kids, especially teens and young adults and explain to them what has happened and what is happening. If we can get the American spirit back into them then we might have a chance.