Why is Diesel more expensive than Gasoline? Conspiracy?
 

So I was chatting with some of my non-diesel owning buddies this evening about the price of fuel (which seems to be a popular topic these days). From what I remember when we were growing up it seemed that diesel always hovered around 10 cents a gallon cheaper than gasoline. This was 15-20 years ago and my memory may be a little foggy because I never used diesel back then. But I always thought it was a bit cheaper. Anyway, within the last 4 years we have seen a dramatic increase in the price of fuel; Today I saw gas at 3.25 and diesel at 3.94 a gallon! So why is diesel much more expensive than gasoline when, from what I understand, it is cheaper to refine?

Although I do not completely buy into conspiracy theories, the first theory is; 1) The increase of the price of petro-diesel is to discourage the development and integration of biodiesel into our domestic diesel supply.
The second, which kind of goes with the first one is; 2) to discourage the demand for diesel passenger cars that will compete with hybrids.
Another theory 3) Is that petroleum companies are jacking up the price to squeeze every bit of profit available from a barrel of oil.

Like I stated before I do not completely buy into these theories but these where brought up in our brief discussion. I would like to here some feedback on why petro-diesel is so expensive in relation to gasoline.

Sure, it's a conspiracy. They need to save all the diesel they can to fuel up all those black helicopters.

Yeah, its so I can buy up MB diesels really cheap before regular gas catches up.

AnOtHeR FuEl ThReAd?

It could be from the ULSD crap now, or supply and demand. But it is probably becuase they can. Or maybe becuase they can, and well pay it.

Diesel is more than gasoline?
 

Someone should start a thread about that. :D

Yup, we don't have enough fuel price threads.

So, your car is all vegged out and your starting a fuel thread. I think a month long ban on fuel threads is in order, unless Diesel turns out to be the fountain of youth or something as epic. :D

Do you like reading about the polluter's plight? You like watching us suffer?

Please, someone put me out of my agony now!!! Goodbye cruel world, with such high diesel prices!!!:D

:hanged2:

People who drive gas cars have more ability to respond to price changes by driving less.... but Truckers carrying all the goods across the country can't really do that.... so the oil companies take advantage of that situation. A conspiracy in that they are greedy and know when they have someone under their thumb and take advantage of the situation.

I've heard several reasons, but none quite pass the mustard for me.....
One of the first was that the production of ULSD increased production cost.
Next, the transportation of ULSD was an issue. Seems that it had to be shipped by truck instead of pipeline since it would scavange sulfur from the pipe (left over from other products using the same pipeline)
Next, the increased demand from China and India.
And of course, the unusual cold winter and the increase demand in home heating oil.
Throw in the speculators and that rounds out some of the 'theories'

Yeah, I realize that there are a lot of fuel price threads going on but this is something that has been on my mind and I haven't heard a concrete explanation for it.

Diesels drive the economy. I think its sort of a terrorist attack on our economy, if you stick it to the diesel/truckers you stick it to the american public via higher everyday prices for groceries etc...

And its working.


Thats my conspiracy theory .

Several reasons
 

1) Diesel is now a cleaner fuel, starting around 1 1/2 years ago. It used to have something like 500 parts of sulfer or something per ml or whatever, and now it's only allowed to have 20 parts per ml.

2) Some of the fuel stations figure they can skim the diesel users, because they're getting 20% better fuel economy, so let's hike up the price about
20%. I'm guessing they make maybe 7 cents per gallon on gas, but probably 27 cents gallon on diesel. They also figure most people using diesel, are companies, so they can hike the price up a bit because of that.

3) Diesel competes with heating oil. The last few years it was higher prior to winter, and fell in spring (or did gas just go up more than diesel?). But diesel was less than gas for a bit just last year. So, diesel should be coming down in price soon. Let's hope that happens.

4) Some of the "big" companies that were going to produce biodiesel, are currently screwed. The costs for soybean oil, etc., has skyrocketed. Right now, it'd cost them $4.29/gallon to produce biodiesel, when Saudi diesel is $3.89/gallon. There was just an article (google it) on ajc.com, I think, about how biodiesel producers are loosing money like crazy, because they can't make the fuel. So they have the building and the equipment, but no vegetable oil to make it with.

jeff 1991 300d

OK, I knew I forgot something, but it's more of a conspiracy like mentioned previously.

If gasoline prices went up like diesel, people would really get bent out of shape because they see it hit them in the pocket book. However, when diesel goes up, they are so friggin' shortsighted that they do not realize that they are paying that increase too !! Increased air fares, transportation costs, and many other costs that are added into commodities. Instead, they ***** at the stores for the increased cost.....

Go figure.....

I have been using B-99 made from palm oil. It is usually 20-25 cents cheaper than petrodiesel here in Miami.

Demand for diesel has grown over three times as fast as demand for gasoline in this country, and significantly more in the rest of the world. The worldwide demand for diesel has skyrocketed while, outside the U.S., I believe gasoline demand has actually dropped. The lack of interest in gasoline in the rest of the world makes it cheaper for us, hence gas prices haven't risen as fast as diesel prices. So far refineries in the U.S. haven't done anything to meet the growing demand for diesel ... the ratio of distillate/gasoline per barrel of oil has changed barely a sconch over the past few years.

I'd say in coming years fuel co's will produce more diesel because there's more demand for it. And worldwide, refineries should produce less gasoline because less and less drivers worldwide want it. Unfortunately right now the demand for diesel outside the U.S. is so much higher that it's more profitable for fuel companies to export it. Our fuel interests in this country are embarassing. I have to imagine other nations are laughing to the bank as we suck up all the gasoline. Over time I think diesel supply will rise to meet demand and gas supply will drop as demand drops. Prices should even out.

No conspiracy, although if you want to blame California, that's legitimate. By "outlawing" diesel in general, they've had a great hand in destroying decades of potential advancement in this nation's fuel habits.