Quote:
Originally Posted by Slcom1983
While I understand the law of supply and demand, I can never get past the idea of why diesel cost more than gasoline when it is so far less refined (pulled green so to speak in the refining process). For gosh sakes,with millions of truckes on the road..the demand is certainly there. Is it that the refineries are not willing to sacrifice gasoline production to supply diesel demand?
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Yes, the demand is there. However the demand for gasoline is stronger. What do you expect them to do? You have 1 barrel of oil. We can make more gasoline or more diesel. Diesel is cracked further to make gasoline. Somebody is going to have to take a bite. Although both my primary vehicles are diesel and my fun toy is gas, I understand that if gas prices go up, more people are going to scream. So, what would you do? Displease 500 people or 5000? Diesel is less refined but because it is further cracked to make gas, the quantities are now less. Less quantities = higher price.