OUCH! diesel fuel at $2.41! - PeachParts Mercedes-Benz Forum

#1 05-06-2004, 10:51 AM

While driving by a gas station which I rarely use, I noticed that the price of diesel jumped 12 cents a gallon to $2.41. That's the most expensive fuel I've seen in my area for self-service period. I'd say that the average price around here is $2.30. It almost negates from an economical standpoint the fuel efficiency of diesel cars.

How much is diesel in other parts of the country?

Jorn · #2 05-06-2004, 10:53 AM

Cheapest I found yesterday was $2.45, but I saw it as high as $2.56!

Old300D · #3 05-06-2004, 11:00 AM

It's up to $1.83 being the cheapest to about $2.00 here in Denver. I haven't been noticing it too much, as I only have to buy 4 gallons a week; the balance of my 250 weekly miles powered by free waste vegetable oil.

bodyart27 · #4 05-06-2004, 11:04 AM

I don't look to often, but I think it's about a $1.60 in Dallas

DCM · #5 05-06-2004, 11:21 AM

I was filling up Tuesday in San Diego for $2.35 and a man at the next pump had just driven through Phoenix where is was $1.79.

There is something criminal going on in the oil business and it looks like both parties have been paid off so there will be no investigations or break up of these foreign owned criminal enterprises.

We need some politicians that represent America first instead of their own or some foreign governments interests.

gatliffe · #6 05-06-2004, 11:32 AM

St Mary Ga go up then down today at the truck stop $1.55 it will go back to $1.51

#7 05-06-2004, 11:46 AM

I question $1.79 in Phoenix

Best I have seen is $2.08. I dropped to $1.98 two weeks ago.

Fricken refineries are rakin in unreal profits.

Jorn · #8 05-06-2004, 11:57 AM

They say there is a shortage, demand is higher then supply; but that would mean that there would be long lines at the pump....I don't see any lines...

BHCULP · #9 05-06-2004, 12:03 PM

The last time that I checked, (this morning), it was 1.56 for the diesel. That is not too bad, it did go up three cents per gallon, but it is still a lot cheaper than the cost of regular, 1.77. Boyd

#10 05-06-2004, 12:36 PM

Yeah, right! The ol' petroleum company thieves conspiracy.

This is supply and demand. The worldwide demand for oil is increasing and OPEC (which is NOT a US organization) is limiting production. What OPEC does would be violation of Antitrust laws if they were in the US. They are not in the US so they get by with it. Supply and demand sets the oil prices.

Another factor at work in the US is that the environmental extremists have made it so expensive to build refineries that none are being built in the US. You can't blame someone for not investing a LARGE amount of money when it will be a money losing proposition.

Also, the last time I was in Europe in 2002, gasoline was over $6 per gallon. There's no telling how expensive it is there now.

Anyone who thinks that US oil companies and politicians are skimming off the top to a point that oil prices are effected, other than isolated instances, probably has several other conspiracy theories that they obsess about. This is the most serious kind of paranoia and anyone obsessing over such fary tales should seek professional help for their paranoia problem.

Have a great day,

Jorn · #11 05-06-2004, 01:09 PM

I'm not into conspiracy's, I'm just amazed about how many explanations there are for the rising prices.

And you can blame "the environmental extremists", who ever they are, or blame the consumer who is driving bigger cars and are willing to pay the price. There was a study that says that the grocery stores feel the punch; consumers chose gas before food!

Was it not Chevron that made 30-billion more profit this first quarter then previous year.

#12 05-06-2004, 01:51 PM

Yes I heard in the news the last few days that surveys show that people are choosing gasoline over food. I'm not sure how they arrive at that, but it is interesting.

I personally don't deny or begrudge anyone making profit. When they make too much profit, the free enterprise system will catch up with them. If it is possible to do so, someone else will decrease pricing and take away part of their business. This is how free enterprise works. If you deny anyone a profit, America as we know it will cease to exist. That experiment was tried in the USSR and failed.

And YES, the environmental extremists have put so many restrictions on refinery construction that it would be unprofitable to build a refinery and make money with it. Notice the word EXTREMIST. No one wants a dirty environment, but the extremists take it beyond practicality. I consider myself an environmentalist. I DON'T consider myself an EXTREMIST.

Have a great day,

lrg · #13 05-06-2004, 01:51 PM

Just paid $2.47 in San Francisco. I agree with Larry that this is supply and demand at work. Two factors limit supply, one is OPEC and crude production, the other is refining capacity. A number of states, not just California, have special specs for gas and diesel and only certain refineries make it. This keeps refineries that have excess capacity of the "wrong" brew of fuel from producing extra to satisfy demand where supplies are tight. Refineries are "tuned" to make a specific brew and can't just turn a switch to adjust formulations. This creates tighter than average markets in certain states like California and drives their prices up. I don't think the refining eco limits are a factor as much as the inability to move product from one market to another. There's no conspirancy here, just a bunch of inflexible regulations. In the meantime the guys like Chevron that own the refineries producing at full tilt and selling into high demand are minting money.

WannaWagon · #14 05-06-2004, 02:02 PM

Then please explain to me why the price of diesel has jumped above the price of gas in recent weeks? Diesel is now, by far, the most expensive fuel in my area -- more costly than premium unleaded, which requires FAR MORE input energy to produce at the refinery than diesel. I thought diesel was always supposed to be less than gasoline because it is easier to refine.

And I would also like to add that while there MAY be an issue with refinery capacity, no one can deny that it was certainly caused in large part by our culture's obssession with gas-hog vehicles. If we all drove passenger cars that got better mpg (like our beloved diesels), I would guess the refinery capacity debate would not exist.

lrg · #15 05-06-2004, 02:22 PM

Refineries can adjust to making more gasoline or more diesel as a % of their overall production. In the Fall the refiners tend to make more diesel as it's also pretty much the same as #2 heating oil. In the Spring they start to produce more gasoline to build up their stocks in anticipation of Summer vacation driving. With the economy recovering, it looks like they underestimated the increase in trucking traffic and under shot the diesel production so excess demand is driving up diesel prices faster than gas prices. Also, you're right that general demand is up, largely due to the fact that overall we are using more gasoline every year (that's probably the SUV factor). Prices for fuel tend to be higher in the summer due to demand being higher. Larry is dead on though, in a free market at some point prices get high enough to justify building new refineries to increase capacity, of course that's when fundamentals in the supply of crude feedstock begin to be a bigger factor. Any way you slice it, growing demand will tend to cause prices to be high. Untill we as a country get smarter about not being fuel hogs we'll have to pay the price.