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  #31  
Old 03-26-2008, 02:31 PM
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Bob
 
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Quote:
Originally Posted by ForcedInduction View Post
Its cheap in Europe because half the cars are Diesel so more of the oil is used for non-g@s fuels.
not true. There are different tax regimes for diesel and gasoline in several EU countries which has allowed diesel to stay artificially cheaper than gasoline. This will be changing soon as the countries begin to phase out the tax disparity and diesel prices will approach those of gasoline.

That said there will be more "checks and balances" on diesel prices where a similar disparity in Europe might cause demonstrations, truckers blockading the roads, and general pressure to "correct" any inequality.
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  #32  
Old 03-26-2008, 05:05 PM
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Supply problem

Since the rest of the western world helps supply China and India with refined fuels it puts a monetary incentive for the industry in the US to export to Europe and the other developing countries that are willing to pay the premium price it demands. There isn't enough refining capacity overseas for diesel demand to be satisfied. Right now there is a sulplus of gasoline stocks here but a deficit in diesel stocks. The speculators in refined petroleum especially diesel are making a huge profit. Capitalism at it's best-worst!!
Bud
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  #33  
Old 03-26-2008, 05:58 PM
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Quote:
Originally Posted by veg_hed_300d View Post
1) The increase of the price of petro-diesel is to discourage the development and integration of biodiesel into our domestic diesel supply.
How does this theory work again? Higher diesel prices should encourange the production of biodiesel...
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  #34  
Old 03-26-2008, 07:46 PM
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I'm going with leathermang's theory. Truckers can't wake up and decide not to drive because diesel is to high. Or farmers can't decide not to plant or plow their field . They will use it anyways regardless of cost (to a certain point)

Some one knows this... maybe the oil companies? Hmmm
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  #35  
Old 03-26-2008, 08:00 PM
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Don't be silly, of course it's a conspiracy.

Name one business in a free market that when cost of goods sold increases, profits increase astronomically??

You can't do it...you can't even name one, because it's impossible in a free market.

So...it's NOT A FREE MARKET. It's a MONOPOLY.

Which is supported by Washington D.C. (essentially Organized Crime), which is supported by rubes and simpletons called: "voters".
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  #36  
Old 03-26-2008, 08:32 PM
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Quote:
Originally Posted by cuban8;
Don't be silly, of course it's a conspiracy.

Name one business in a free market that when cost of goods sold increases, profits increase astronomically??

You can't do it...you can't even name one, because it's impossible in a free market.

So...it's NOT A FREE MARKET. It's a MONOPOLY.

Which is supported by Washington D.C. (essentially Organized Crime), which is supported by rubes and simpletons called: "voters".
The petroleum industry in one industry. Mobil oil/BP/Shell all dig in out of the ground as a producer, then sell it to themselves under a different business name as the refiner, then sell it to themselves under a different business name as the retailer. The parent company and all the business's are obviously owned by the same people. If you make, say 10% profit on every dollar, and you sell 100 dollars you make 10 bucks. If then the price increases and you are now selling 500 dollars you are making 50 bucks- all for the same amount of work. That's why profits have gone thru the roof. The percentage of profit remains the same, but the number of dollars goes up, so profit total goes up.
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  #37  
Old 03-27-2008, 12:50 AM
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Iraqi solution

Frontline on PBS last night...Iraqi fuel tanker drivers filling up their tankers as
much as 50% with H2O and Pirating the rest.(Thank God, we don't buy any
Iraqi Diesel)

That would be the oil companies wildest dreams in this country.
Wells Fargo,Loomis and Blackwater running armed fuel convoys in CONUS.
Their worst nightmare is someone running the government that they can't control.
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  #38  
Old 03-27-2008, 02:32 AM
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this is normal

I've been watching the price of gas vs. diesel for a number of years, way longer than I've actually owned a diesel. I probably do it because misery loves company -- I have to buy premium gas for the Volvo and diesel is the only fuel whose price fluctuates with respect to gas.

Over the years, I've observed a consistent trend of diesel prices going up as compared to gas just at the end of heating oil season. In years with colder than normal spring temperatures, diesel soars more than in years with warmer spring temps. Some years, diesel gets really close to the cost for premium gas. I can't recall it ever topping premium gas like it is now, but yes, this escalation in prices has been happening annually for as long as I can remember.

I've always chalked it up to competition with heating oil since there seems to be a correlation with springtime temperatures. I've been out of the midwest for a number of years now, but isn't this an unprecedented cold, snowy spring for the most populated half of the country? It sure seems like that's the case from here. That would drive end of season heating oil demand sky high, and since D#2 is a competing product, affect it as well.

I'm normally a strong adherent of the oil company conspiracy theory, but in this one case, I think it is simply unexpected competition with heating oil. I sure feel for the truckers though, and through them, for all of us, as diesel-price-driven inflation takes an abrupt turn in the wrong direction.
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  #39  
Old 03-27-2008, 07:21 AM
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Quote:
Originally Posted by cuban8 View Post
Don't be silly, of course it's a conspiracy.

Name one business in a free market that when cost of goods sold increases, profits increase astronomically??

You can't do it...you can't even name one, because it's impossible in a free market.

So...it's NOT A FREE MARKET. It's a MONOPOLY.

Which is supported by Washington D.C. (essentially Organized Crime), which is supported by rubes and simpletons called: "voters".
You're spot on (and one of the few who "gets it"). We can't vote our way out of this mess, we need to take control of it ourselves by getting off foreign oil dependency.
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