why is diesel still higher than gas???

[Cummins Cowboy]

in utah diesel is still higher than gas, by about . 25-. 40 cents/gallon on the futures market today gas is $1. 99 and heating oil/diesel is 1. 92 now in utah diesel is taxed . 06 more per gallon, so we should be . 01 cheaper than gasoline, This approxiamate difference in price has been fairly constant for the last few months, so my question is who is pocketing the money and if everyone else is seeing similar things in their area

 

[Dieselnut59]

Why would diesel be taxed MORE per gallon? That is kinda backwards thinking in my opinion! I thought diesel had LESS tax. I know that is the case in UK, just figured it was the same in US?

 

[EBung]

I thought the feds taxed diesel 33% more than gas.

 

[TMarszalek]

Diesel prices here in the Pacific Northwest have matched and occassionally exceeded the price of premium gas for two simple reasons:

1. We're buying it, more diesels on the road so demand is up!

2. The continuing federal mandates to reduce sulfur content costs the refiners some extra coin to hydrotreat it! This year it goes down to 5 ppm!

 

[lil red cummins]

i was told by a local station that diesel had a higher tax on it. however, after reading this tax chart , it looks like it varies from state to state.



notice also that listed taxes do NOT include 18. 4 cents/gal federal tax.



looks like pennsylvania is getting hit the hardest.



BTW - to answer your question as i received it from 2 emails that i sent to the oil companies asking this very question... "because of the increased demand for diesel (mainland china) and because of all the formulation variations from state to state"



i also believe you should factor in that they charge more because the gasoline crowd is larger and gets more media coverage. we suffer from being too quiet.



jim

 

[DBrickel]

There are federal taxes and state taxes on fuel. The state taxes will vary from state to state. I know Washington has one of the highest state fuel taxes. We may even now be at the top of the list

Oil is bought crude by the barrel. China using more diesel shouldn't have anything to do with the way the refineries decide to slice the pie.

Its the old golden rule. ----- The man with the gold makes the rules

 

[Cummins Cowboy]

taxes on diesel do vary from state to state, in utah it happens to be . 06/gallon more than gas, after doing a little research it appears that only in the rockys and the pacific west is diesel substaintially more than gas, every where else diesel at the moment appers to be slightly less or the same as gas.



http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp



Check that site out, I am still wondering why us in the west continue to get soaked when it comes to buying diesel, BTW you can buy premium gas for $2. 99 just filled up today at 3. 19 WTF

 

[smd]

Here in Reno and in Carson City diesel is the cheapest of the 3 gas grades, finially!!!!!!

 

[RustyJC]

Road taxes on diesel are higher in the U. S. based on the rationale that big rigs do more damage to roads than smaller, gasoline-powered vehicles. In Europe, diesel is generally taxed lower than gasoline in order to encourage its use since diesel engines are better insofar as greenhouse gas emissions (CO, CO2) than gasoline engines, and most (if not all) European countries are Kyoto accord signatories.



Rusty

 

[gitchesum]

Most of the reason you guys on the West Coast pay more is due to the type of diesel you get.



California and some other Western states require Alternate Low Aromatic Diesel. It's a cleaner diesel fuel(although not near as clean as ULSD). Just like the gasoline in California is different than any other state in the country.





Most states in the country right now are experiencing lower diesel prices. In Houston, diesel is cheaper than regular unleaded by almost 10 cents in some places. That's mostly due to the upcoming introduction of ULSD(ultra low sulfur diesel) in June of 2006. They have to dump off all the old 500 ppm fuel to prepare to sell the new 15 ppm fuel.



Enjoy it while you can, because they won't be down there long.

 

[DBrickel]

I sure would like to see a wealthy Corp or private donor offer a nice $$$ prize to the group that could come up with a very high milage or alternative and practical vehicle that could blow the socks off the Prius. Kind of like they did for the private group reaching space. Sometimes having a carrot out there leading the way helps thinking outside the box. It Seems like you could set some guide lines etc. to achieve and who knows what some genious could come up with. It worked somewhat for the private space group that may help a very few visit space. Why not something that would help many many more in a more practical way. You listening Bill?

 

[GaryOwen]

LongShot

Virtually all trucking companies adjust owner/operator pay with a fuel surcharge, therefore, drivers complain less.

The oil industry realizes this and has decided profits from diesel can be had with fewer complaints. The amount of diesel used by our pickups is probably insignificant as compared to the big trucks, so I don't think there is significant more demand to cause higher prices from that viewpoint.

 

[starkmr]

I hate to say you're all wrong, but here is what I think.



Big oil is going to charge you what they think they can get away with, regardless of market.



The trend the last couple of years, run prices over $2 per gallon and we all screamed bloody murder. They then backed the price down about . 25 and we all settled down. Now they've run it up to $3 and we are all screaming again. Soon they will back that down a little ($2. 50 maybe) and we will all be happy again. Remember that last year we screamed about $2. 50. There is still no rhyme nor reason for the disparity between gas and diesel prices across the country. I work in Alaska and live in Arizona and see this all the time. For the last 6 months or so, diesel in Arizona has been about . 25 per gallon higher than regular unleaded. Go to Alaska and you find it the same price. Now you might say that Alaska produces its own, but the oil companies up here tell us that the reason fuel is expensive in AK is because it is an inefficient market.



Remembering the Seventies when we had 'inflation', I remember from economics class that the definition of inflation was something along the lines of prices rising faster than income. I haven't seen my income rising to meet the increase in oil prices. Petroleum based products are in our everyday life beyond just fuel. Plastics are petro based, how many of them do you use everyday?



Just my . 02 and I will get off of my soap box now. Thanks for your time.



Mike

 

[EMD-Run8]

I hear ya! Notice lately that diesel has gone back up... . it's running about 10 cents more than regular here in NW FL. There was a little hissy thrown the other day and the Prez spoke a few words and so the price of unleaded came down after the industry was scolded a little and lo and behold diesel went up. Hmmmmmmmm... ..... I think they're keeping diesel jacked up at most stations so they can hold reg unleaded down a few cent's so the other motoring masses won't scream. Ya know, were supposed to be rewarding folks for driving what is generally a more efficient vehicle. This is just buttbackwards!

 

[BAnderso]

One big problem getting the price of diesel down it that from a barrel of raw crude you can get either 5 gals of diesel or 8 gallons of gas ... either/or. This makes diesel more expensive in raw materials than gas.

Barry
Charles Town, WV

 

[starkmr]

I don't know so much about that!! Diesel used to always be cheaper than gas because it is not refined to the degree gas is. What you are saying is that by refining crude more, it makes more gas than diesel? Doesn't make sense to me.