Get prepared for expensive diesel motoring - PeachParts Mercedes-Benz Forum

braverichard · #1 05-07-2005, 10:39 PM

Well from what I just heard I may be giving up driving my diesel daily.

After having a meeting with some top executives at some oil companies, I was assured that from now onwards diesel will remain more expensive than gasoline. This is attributed mostly to lack of refining capacity and the increase in demand for diesels in rapidly growing economies such as China and India which have started purchasing many heavy duty trucks than run on diesel. Just have a look at DaimlerChrysler's (DCX) financial reports to get a good idea of how much the demand for diesel has increased in these last few months. The Commercial Trucks Division's sales were up 42% and as of now, DCX's Commercial Trucks are its most profitable segment. Furthermore, so many more commercial trucks are on order that the aforementioned division of DCX will add 4,000 factory jobs and 1,000 engineering jobs this year!

Had enough yet? Well, actually, the cost of diesel will be driven even much higher in 2006-2007 when the manufacturers are required to start producing low sulphur diesel. I was informed that it will cost more to produce and should have the price of diesel permanently above that of premium gasoline by at least 20 cents a gallon!!

Furthermore, these oil companies don't hesitate to increase the cost of diesel because over 99% of vehicles that use diesel in the USA are commercial trucks used by companies who have no choice but to pay the premium and perhaps recover some of their costs by raising the prices of their goods and services.

I'm going to plan to sell my 300SD before all that hits. Search results on this website revealed that W126 300SE/300SEL owners average about 20-21mpg in combined city and highway driving. Well, my 300SD currently averages about 21-24mpg in combined city and highway driving. With the more expensive diesel, the time to give it up may be coming. I'm yet to thoroughly research the cost advantages of owning that 300SD over a 300SE/300SEL before I decide. Overall, it isn't looking too great for diesel motoring.

Ganaraska · #2 05-07-2005, 10:45 PM

Sounds like the old ackamarackas to me. Years ago they said the reason gas was so expensive was that they get a lot more diesel out of a barrel of oil than they do gas. Even with the cracking process. So if they want to make more diesel all they have to do is eliminate the cracking process and save some money and some crude.

If the supply of diesel dries up they can start adding veggie oil.

There is no LEGITIMATE reason for a diesel fuel shortage. I bought mine specifically because I fear a gasoline shortage in the next few years.

wabenzee · #3 05-07-2005, 11:55 PM

I have to agree with Braverichard. I am also feeling the pinch of these high diesel prices. I do a lot of traveling with my 90 300D 2.5 for work. I am averaging 25 - 28 on the highway. I bought this car to save money, but it seems like I am spending more plus I have to put up with slow acceleration and performance. If I had bought a gas 300E, I would have the performance I needed and still get practically the same or slightly lower mileage with lower priced fuel. I will be ebaying my car soon and getting a similar vintage 300E. Hell I may even treat myself to a 420E !!! What's the point ?

Diesel Fan · #4 05-08-2005, 12:11 AM

I buy diesels because I have an addiction. A disease. I can't help myself.

dieseldiehard · #5 05-08-2005, 02:11 AM

like my moniker suggests OVER MY DEAD BODY WILL I STOP RUNNING DIESELS!

I was pawing around my friend's shop last week and a customer brought in his '99 E300D turbo, it needed some filters is all. The fellow that test drove it was all aglow talking about whiplash he got from its acceleration. The car was hot to prove it (not overheated, just hot you know) as I raised the hood and then I spent a long while familiarizing myself with that gem. Darned if can afford another Benz right now but I think this is one diesel to be on the lookout for!
To heck with fuel cost I don't drive that much, just a cross country trip once a year that adds up some miles.

1971 220 (gas) 4-spd manual 106441
1979 300TD w/ ’85 turbo engine 298450
1983 300D 244626
1985 300TD 223470
1987 300D 262300

pawoSD · #6 05-08-2005, 02:23 AM

I will never give up my diesel, no way. I'm addicted and I will keep this car forever. The only non-diesel car's I'd drive around in instead (while keeping the diesel too of course) would be like a 500sl, a 380se, or a 420sel. Along those lines. But I will stay diesel forever....no matter the cost.....till its all gone and I'm forced to hyrdrogen...or whatever I am running by then...maybe a compressed air engine.

My diesel.... $2.29 a gallon at 24mpg.....

A 380se.....$2.19 (premium) a gallon at 13mpg...hmmmmmm (current prices at the station a block from my house)

Diesel still wins here for me...

Our caravan has only been averaging about 14-16mpg...terrible....when I was leadfooting it a few weeks ago with it I got 13.4!!!

Pequod · #7 05-08-2005, 08:27 AM

Having seen this ludicrous post, I could not resist saying...."what a crock of bull." Futures prices, demand, supply, and by the way basic economic theory drive prices. Meeting with oil company executives!!!!!!!. Gotta love peoples imaginations.

braverichard · #8 05-08-2005, 08:33 AM

Imaginations huh? Hey, if you feel like insulting someone pick yourself. Geez, some people have problems.

tomm9298 · #9 05-08-2005, 09:08 AM

Buy both!!!

I bought the 280TE for 3 reasons
1) Love them Benzs'
2) Gas is cheaper in winter than diesel
3) Love a wagon.

If this plays out to be true, I have little doubt that it will, then my WVO/diesel blend will still be a good thing. The major auto manufacturers are ALL planning on bringing diesels out in 2007. Everyone saw VW's profits soar in Spring of 2004. No other diesel car in USA. MB brought one over in Summer of 2004, E320 CDI. With the oil barrons well aware of this, it would seem logical to contrive a plan to raise diesel prices. Not paranoid, just a logical conclusion.

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