Why is diesel fuel now cheaper than RUG? This is not a political "hook" rather I am just looking for some facts.

My understanding is that diesel and winter heating oil are linked so now that that temps are warmer, demand has reduced -

Are there a lot of homes and possibly other building, (churches, schools and stores) still using heating oil? Here in the Indianapolis area to see a truck dispensing fuel oil for heating is very rare as most have converted to propane. How many trucks do you see in your area dispensing heating fuel?

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Junqueyardjim
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I'm thinking the heating oil impact isn't a factor in southern California. They barely nee heat there, and I'm guessing there aren't enough oil burning furnaces to matter.

The biggest factor is the decline in oil prices. The benchmark price in the U.S. has declined from roughly $107 to $84 over the last three months. I don't have any idea why diesel would have declined more than gasoline. Did the state perhaps raise gasoline taxes while leaving diesel alone?

Here in Dallas diesel remains more expensive - think I just saw 3.39 vs 3.17 today. Both have come down a bunch from highs earlier this year.

it is still at $3.79 in charlotte with gas at 3.31

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You are describing a metropolis area. Go further out to rural areas and in many places HHO is still common since there are not pipelines to go to every house. When we moved into our house, it only had electric baseboards and a fuel oil boiler and we've only lived here two years. We've since added ducting and geothermal.

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Well we live pretty rural, corn and soybeans on every corner plus a lot of winter wheat being harvested right now and dry as it is they are replanting same day with beans. Boy is it hot and dry around Indiana. Well, anyway, we used to see fuel trucks all over and around here I would say most of the farmers have switched over to propane for heat. Their crop dryers run on propane also, I don't think I ever heard of a crop dryer burning oil, but maybe they did. But around here there is no pipeline to a lot of the far suburbs and farms and they all burn propane.

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Junqueyardjim
Christianity, if false, is of no importance, and if true, of infinite importance. The only thing it cannot be is moderately important. C.S. Lewis



1983 Mercedes W123 240D 4 Speed 285,000 on the road with a 617 turbo, beautiful butter yellow, license plate # 83 240D INDIANA

2003 Jaguar Type X, AWD. beautiful, good mileage,
Mom's car, but I won't let her drive it!

I only knew a single person/house that had heating oil, and it was switched to propane a few years ago.....almost no demand at all for it around here. Propane is better because it can run a stove/furnace/water heater and burns cleaner, heating oil cannot.

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diesel is still around $3.50 here and RUG is about $3.15

D has been dropping in charlotte for several weeks... lowest price I've seen is around 3.58, average is around 3.80 many stations in center city are still over 4.00, 4.07 I've seen. RUG I've seen as low as 3.21, average is 3.39 3.45 is still around too...

but as to the reasons for the drop. less driving/less fuel use/lower demand/prices drop to stimulate purchase/increase driving/raise prices.

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In the north east HHO is still very common. Back in the days when fuel oil was dirt cheap and people were afraid of natural gas leaks suffocating them in the night, most people replaced their coal fired burners with oil burners. Since those oil burners are pretty reliable and the cost to replace them is quite high, people just eat the price of oil and keep them running.

The US demand as a whole has been going down for a while due to the cost of fuel and we are seeing the results of that now. Add to the driver demand being reduced, the winter heating season has come to an end. Don't get all giddy, though. Increased summer demand is coming and resulting from that will be higher fuel prices. It's all economics - supply and demand.

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Priming the pump for the November elections......

OK, I understand supply and demand, but it still does not make sense why diesel prices are going down. Here in Southern CA, six months ago, diesel was approximately 10 cents a gallon more than premium. Now it is 30 cents below regular unleaded. Diesel should be cheaper than Regular unleaded as it was years ago because it is less refined, but with many new diesel models out, i.e., BMW, M-B, VW, KIA, etc., I would think diesel prices would stay high. I'm not complaining, just confused.

X2, wait until the elections are over. sure it will climb some during the summer, usually does. but after the elections are over.....................

I paid $3.69 yesterday here in Carson City, Nv. most of the prices are around $3.78 for diesel.

The station I got the fuel from, was $3.74 on Thurs, then dropped to the $3.69. the station I got it from the Country Store, Hwy 50, east of the 395 freeway.

Charlie

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