Theoretically speaking, they could always make automobile diesel cheaper by only offering it at pumps in which semis could not fit, and having a limit on how many gallons can be used per fill so that way truckers could not buy it and then just carry it over.
I don't think that would work though. Just an idea!

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Dan
2005 E320 CDI - 246k
1987 300SDL TD05-16g, Herlevi pump, Elbe manifold, 2.47 LSD - 213k
Past: 1987 300D - 264k

Well, as far as I know, semi trucks do not fit in most gas stations (at least not where I live). I have never seen them filling up at a regular service station. So, it's not a bad idea at all. I can't imagine it would be too hard to enforce. Just tell service stations that they can't fill semi trucks. They do the same thing with farm diesel and it seems to work out fine. Obviously the volumes of fuel we're talking about are greater than w/ farm diesel, but I would think it could be manageable.

I'm not saying that road taxes should be completely eliminated from consumer diesel as it is with farm diesel, but semis and cars should be taxed differently because they do different things to the road (and to the environment).

EDIT: I realize that in rural areas, this might pose a problem for truckers trying to buy fuel where stations are few and far between. In this case, I think a specific pump for semis and a specific pump for consumer vehicles would work.

I just realized that I'm thinking like an Oregonian here. We don't fill our own tanks. Self-service would pose a bigger logistical problem.

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-1991 Ford Ranger: multicolored and the clutch is gonna die.
-WTB w123
-Aspiring Biodiesel homebrewer

Just because it's leased doesn't mean there's oil or even if there is, it would be economical to get it. Our farm has had an oil lease on it for the last 40 years. I don't know why they hold on to it.

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Michael LaFleur

'05 E320 CDI - 86,000 miles
'86 300SDL - 360,000 miles
'85 300SD - 150,000 miles (sold)
'89 190D - 120,000 miles (sold)
'85 300SD - 317,000 miles (sold)
'98 ML320 - 270,000 miles (sold)
'75 300D - 170,000 miles (sold)
'83 Harley Davidson FLTC (Broken again) :-(
'61 Plymouth Valiant - 60k mikes
2004 Papillon (Oliver)
2005 Tzitzu (Griffon)
2009 Welsh Corgi (Buba)

Thanks for keeping it simple for us though - it's appreciated. And I agree with you, your argument is very, uh . . . simple. get back to doing what we like to do on this site - talking about our Mercedes diesels. [/QUOTE]

I agree! High oil prices also benefit in a very positive way. Demand is down, conservation is up. Price is affected by supply and demand. The free market automatically balances itself with investors looking for additional resources when prices are high. We are awash in energy if only congress would allow us to get to it and consumers demand that our representatives allow it. We would have a myriad of Mercedes and other brand diesel vehicle choices were it not for excessive government regulation. As a group we are negatively affected that diesel prices are higher than gas and expels much of the advantage of driving the Mercedes E300 diesel.

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'96 C220 138,000mi, '95 E300D 239,000 mi., '87 300TD 214,000mi '88 6.2 Turbo Diesel Chevy Conversion Van 253,000 mi.

Doubtful we will ever again see diesel $2.86 gallon.

Inflation is here. My question is when does gas start to leap upward as well? The two seem to teeter todder in relation to each other over time. The overall trend should be generally still upward.

OK.....you made my knee jerk with this comment I manage a fleet of 13 Tractor Trailers. My monthly fuel bill is in excess of $70k and you want to raise my costs??? No Problem. Go ahead, in fact double the cost!!! See, I'll just raise my prices to accommodate the higher fuel costs. So all the things transported by truck, which includes pretty much everything will go up in cost to you (the consumer).

It's important to remember that Businesses pay NO Tax.....wait for it......they know what tax rates are and build those costs into their sell prices. It is the consumer who pays. Please don't fool yourself into believing that raising taxes on anything won't cause you to shell out more dough. We update our fuel surcharges weekly, so you, the consumer will start paying almost immediately.

The question that needs to be asked is why diesel is being used to offset the cost of unleaded gas. The simple (PC) answer is that more people consume unleaded gas than diesel fuel. Sometimes you have to look beyond the simple answers because in the end, the same people who are "saving" money on unleaded gas are paying more for everything else they buy. Hey!, perhaps this is why food prices are not calculated into inflation rates??

That monolith based in DC is having growing pains.....in the end, we'll all be paying for that!

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'98 E300 Turbo Diesel 274,000 miles

It really wasn't that long ago that diesel prices were well below unleaded prices and both were below the $3.00 gal mark. IMHO, the manipulation of fuel prices over the past several years has more to do with squeezing the highest amount of tax revenue out of our collective pockets. Increasing diesel costs affects everyone as nearly everything we consume is hauled in by trucks. From alcohol to zebra wood. Raise the cost of the fuel and you raise the sale price, raise the sale price and you increase the amount of the tax. For example, not long ago a gallon of milk cost about $2.59 a gallon. Today it is around $3.60. I think our tax rate in NC is 7%, take the difference in prices and multiply by the tax rate. This should give you about .07 a gal. Doesn't sound like much.....but you have to remember that the Gov't is also getting about 36% of the $1.01 increase. Take those two numbers and multiply by the number of people who buy milk.

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'98 E300 Turbo Diesel 274,000 miles

Just gotta love you guys.

In snowy central Scotland diesel is currently the equivalent of $8.12 per US Gal.

That's at GB£1.37p per litre.

Two problems with this:

- Most fuel taxes aren't percentages, they're fixed dollar amounts. For example, here in Washington state it's $0.375 per gallon. The state doesn't get any more of a cut if the price goes up. Federal fuel taxes are $0.184 per gallon; again, they don't get any more if the price increases.

- Your milk example is true if your state charges sales tax on food items. Many states don't.

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1981 Mercedes 300TD, 1994 Honda Civic Del Sol
http://mefi.us/images/fuelly/smallsig-us/67195.pnghttp://mefi.us/images/fuelly/smallsig-us/103885.png

Correct, fuel taxes are fixed dollar amounts. Correct, some States don't charge sales tax and some States don't charge sales tax on Food.

The point that I was attempting to make......if a company operates with a 10% margin and they pay a 36% Federal Tax Rate, does the Gov't want to see 100k in taxable income or 150k in taxable income? Cost is cost and will be passed along to the consumer of goods and services. If you raise the revenue figure, the tax will be higher. This is how the Gov't passes along tax increases without increasing taxes. A company can operate at the same margin or even shave its margin a point or two and pay more in net taxes due to higher revenue figures. Higher fuel costs affect the cost of everything and reach every man, woman and child regardless of economic status. Years ago (and not that many), diesel fuel was priced well below unleaded gas. Now diesel is priced about the same as premium unleaded (at least here in NC). It is my belief (and I could be wrong, but don't think I am) that diesel prices were increased as a trade off for lower unleaded prices. Oil companies are making the same 4-5% that they usually do so the restructuring of fuel prices seems plausible. The bonus for the Tax Man is that the increases in Diesel costs tapped into the Supply Chain for the nation.....and being a cynic I don't think that was by accident

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'98 E300 Turbo Diesel 274,000 miles

WoW!!!

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'98 E300 Turbo Diesel 274,000 miles

Y'all forget 40% or more of U.S. refined diesel is transported and sold overseas.

The !*&%^$#@ Thieving Refiners ALWAYS use the Transport to Artificially
inflate the Demand for Diesel/JET FUEL in the U.S.

There are so few Diesel consumers at the Automotive Level as to be insignificant.

There's No Way to EVER achieve Victory over the Oil Companies as long as
they're Private entities allowed to Buy the Government.

And,Yes I'm espousing NATIONALIZATION of the Oil Companies!

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'84 300SD sold
124.128

I would tend to discount this just because the reality is most companies don't pay much in taxes anyway, so there isn't a lot to be gained by the government gaming that system. They use creative accounting or hide money in overseas subsidiaries to avoid it. Exxon-Mobil didn't pay any federal income taxes at all in 2009; in 2010 they did (at an effective tax rate of a bit below 18%) and I suspect they probably fired some accountants over that mistake.

That may be, but maybe not quite in the way you think.

It used to be diesel and gasoline were simply different fractions of crude oil. However, gasoline is usually in much higher demand, so refineries developed catalytic cracking methods to break down heavier fractions into gasoline base stock. This actually takes some of what would have become diesel fuel and home heating fuel and turns it into gasoline. So in that sense gasoline capacity has been expanded at the expense of diesel, although this isn't at all a new phenomenon.

I have also heard, anecdotally, that European refining capacity has not kept pace with their consumption of diesel fuel -- which is much more heavily used for cars there than it is here. If U.S. refineries are shipping finished diesel over to Europe, that drives up the price here.

I also suspect the switch to ultra low sulfer diesel made diesel fuel more expensive to produce; even if that's not true on an ongoing basis, there were no doubt equipment investments that they're still paying for.

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1981 Mercedes 300TD, 1994 Honda Civic Del Sol
http://mefi.us/images/fuelly/smallsig-us/67195.pnghttp://mefi.us/images/fuelly/smallsig-us/103885.png

You know, I had always believed that it costs more to refine unleaded fuel than it did diesel. To be honest, I've never really researched that, which surprises me lol. I still don't know what the reason behind going to a low sulfur fuel was, though I have assumed it was emissions related. I'm afraid the next big change will be the DEF fluid. Again I've assumed that is also emissions related but I've already had some experience with it on our big trucks and it's a real pain. Expensive and inefficient. The trucks I've rented that use it get a full mgp less than those that don't. I hope they don't move that direction on passenger vehicles, but I know they already have on the diesel pickups.

Interesting we're exporting diesel abroad....Russia produces diesel fuel by the boat load. I would have thought it would be a better bargain for European Countries. But then again, I seem to recall the Russian oil is somewhat low grade or something....

Thanks for the info on processing, I learned something today!

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'98 E300 Turbo Diesel 274,000 miles