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WTH is going on? Diesel at 4.97 in Detroit

I did a double take and actually went back. A station on US-24 has 3.39 for RUG and 4.97 for diesel. :eek:

I figured maybe 4.25 but 4.97?

What's the deal, anyway, why so much higher for diesel in general?

This will prompt me even more to go the bio-d route.

The US is a net inporter of crude oil and gasoline and a net exporter of diesel fuel, mostly to Europe and China. The more gasoline vehicles are replaced with diesels in the world, the more expensive its going to get. Most european countries try to encourage people to buy diesels with lower taxes on diesel fuel. The net effect is that there is no premium for diesel fuel in Europe compared to gasoline. Also take a look at the spread between WTI crude and wholesale gasoline. Its getting pretty silly.

I saw this one in Oregon and laughed. I'm so happy I didn't buy a 190D when I had the chance.
http://img.photobucket.com/albums/v2...g?t=1322607007

RUG is $3.049 up at the corner. I better fill up everything with a gas cap on it.

Diesel is used to delivery everything sold at the store. Pricing power over diesel is just as good as taxing authority on consumption. They are not shy about skimming off the top.

Fortunately, China is heading into a recession (their manufacturing actually contracted last month) so this may take some of the pressure off.

Diesel was $3.50 when I filled up in NJ, compared to ~$3 for RUG. (I never get gas in NYC, as it's stupidly expensive.)

Diesel is typically 8% more expensive than RUG on this side of the pond. $AU 1.39 / liter at the moment. X3.5 is a good enough conversion.

When I went to see my friend in Southern California I paid 4.79 at the station near his house. I put $15 in to get us around for the day, when back to his house and got on Gasbuddy.com and searched for cheaper diesel. 4.10 around the corner from Disneyland is what I bought the next morning before leaving for Sacramento. got back to Sacramento on that tank and was able to refuel for 3.95 in Sacramento.

I've seen diesel about 60-75 cents more than rug in the Memphis area.

Jeezus, it's $4.07 here and we've got some of the highest fuel prices (and taxes) in the country.

#2 Diesel is the same thing as Home Heating Oil. HHO is not tested for a Cetane rating and #2 Diesel is, but beyond that there is little difference.

Right now everyone is filling up on HHO and throughout the Midwest farmers are loading up on Diesel to finish up in the fields before winter.

This does not take place every winter, but over the past 35 years I have seen it do it several times.

Quote:

Originally Posted by tjts1 (Post 2838940)

US is a net EXPORTER of refined gasoline. The demand for gas is going down. Demand for diesel and heating oil is going up.

Exports help drive record U.S. refinery production - latimes.com

U.S. diesel prices are also worse than ever for this time of year. Nationally, the average price of a gallon of diesel Friday is $3.99, according to the AAA, or 58.6 cents above the old record set five years ago. In California, the average price for a gallon of diesel is $4.31 or 69.3 cents above the old mark set in 2007.

The London Financial times also has some interesting info:

Heating oil furnace nears full blast in US - FT.com#