still getting on diesel

[Cummins Cowboy]

when I bought my first diesel back in late '99 diesel was in the $1. 50 range before the big fuel increases it would run from $1. 40-to about 1. 75, gasoline was about the same. now gasoline is back down to the 1. 75 range but I am still paying over $2. 50 a gallon for diesel, you never saw that type of price before fuel went over $2 a gallon. I am wondering why diesel is nearly $1 more per gallon.

 

[BrianJ]

Four letters... . ULSD...



Not to mention different market forces than gasoline, especially this time of year at the start of the heating oil season.



With the advent of ULSD our diesel can now be blended to meet european specifications, and we now export refined diesel. Our refined ULSD is now a world commodity.

 

[DennyDay]

Cowboy - - - Even though the cost to make diesel fuel, is roughly 1/2 of the cost to make gasoline - - it was only 1/3 before ULSD, the high cost is due to four things:



1. Diesel Fuel users are unable to use any thing else that is reasonably priced.



2. The federal government (EPA and Calif) decided diesel wasn't "clean enough" and mandated unreasonable regulations be met in an effort to "Clean up the Universe"



3. The oil companies, thinking diesel fuel was the future fuel for the USA, as is in the rest of the world, started pushing up the price to keep the fuela cost per mile at the same rate as a gasoline powered vehicles,and so buyers wouldn't get "sticker shock" when the price started to go up. Since Diesel fuel wasn't universely accepted, and the prices were already up, and buyers were buying, there was no incentitive to lower the prices.



And Finally - - -



4. "Because they Can"





Denny

 

[Grizzly]

4. "Because they Can"











I Believe this is the best reason why diesel is higher then gasoline.

 

[Cummins Cowboy]

so lets see gas is 1. 60/gal diesel is 2. 50 a gal where I live, since when has diesel ever cost 50% more than gasoline, that is what we have forgotten diesel has never been priced that much higher than gas as a %

 

[DennyDay]

Just refer to Reason #4 above.



Denny

 

[InfernoB]

Sorry the ROC had anything to do with this, but in Costa Mesa it was down to 2. 35/gallon of ULSD. Still too high, but reason number 4 is the real answer.

 

[Dbonzi]

If you look at the larger picture,

every thing is built, moved, harvested,produced with diesel



if you keep diesel up then everything else is going to stay up.



If everything is higher priced that = more TAX!!!

 

[FPettijohn]

So why isn't the trucking industry asking these questions???

 

[DennyDay]

FPettijohn - - This is why the trucking industry isn't asking questions - - -



The industry as a whole doesn't care, with the fuel surcharge system that is in place, *trucking doesn't care what the price of fuel is, because they are getting fuel surcharges that go far beyond the fuel cost. The only people that are hurt are the people like you and me, because the fuel surcharge is tacked on to everything we buy. Have you checked the price of groceries lately. Everything we buy, at one time or another was on the highway some of the way. Rail has the same type of surcharge as truck, and the airlines joined in, but they did it a little differently, - - remember the $25. for a checked bag?



Think about it - - no matter what - - the guy that gets stuck in the end is the consumer.



* (Trucking refers to the industry as a whole, primarily the big carriers with hundreds of trucks - - not the little guy that is only getting part of the surcharge. )



Denny