What happened to the price of Diesel ??? - PeachParts Mercedes-Benz Forum

Mr. G · #1 12-07-2006, 11:03 AM

Diesel just went up $0.30 cents here (Southern California, Ventura County) from 4 days ago. It went from $2.69 to $2.99. Gasoline seems to be holding at $2.49 - $2.69 (reg. / prem.).

Anyone have any idea why this happened. Usually there is a spike around September so people don't fill their heating oil tanks with jerry cans from the Diesel pumps. I don't ever remeber this large a spike on diesel only during the holidays.

probear · #2 12-07-2006, 11:07 AM

Several things are happening.
First, OPEC and others cut back production last month because the price had dropped too much.
Secondly, the weather is getting rough (read cold) up north and the oil speculators are pushing the prices up
And one other thing is the switch to ULSD.

Might as well get used to it. $3 fuel is here to stay.....

vstech · #3 12-07-2006, 11:07 AM

down here, gas is up about 12 cents and diesel about 10... 209-235 depending on stores for RUG and 239-2.89 for D
John

Monomer · #4 12-07-2006, 11:52 AM

-Winter blends cost more to produce (more additives, to stop gelling)

-Diesel can be used as home heating oil, which raises the prices.

rrgrassi · #5 12-07-2006, 11:54 AM

OPEC and The Oil Companies gearing up for year end bonuses to the top execs?

pawoSD · #6 12-07-2006, 12:04 PM

Quote:

Originally Posted by rrgrassi

OPEC and The Oil Companies gearing up for year end bonuses to the top execs?

Probably....

stcbenz83 · #7 12-07-2006, 12:07 PM

this still dose not explain. cause diesel takes less energy to refign. When i talked to my PO the other day, he said that he read, or heard of whatever, that more diesel is being exported to other countrys or what have you.

vstech · #8 12-07-2006, 12:56 PM

Quote:

Originally Posted by stcbenz83

this still dose not explain. cause diesel takes less energy to refign.

this keeps getting reported, it's not true anymore. with all the additives and such Diesel takes just as much energy to produce as RUG and since the Diesel/Rug is an either/or solution from the crude, and there is a lower demand for it, they charge more for it... sometimes.
it all comes down to this, as long as it keeps getting sold, they ain't gonna lower the prices.
John

Hatterasguy · #9 12-07-2006, 01:21 PM

Went up about a dime in my area.

probear · #10 12-07-2006, 01:25 PM

I've also heard that in some areas, there is a transportation problem. Seems that lots of different fuels flow through the same pipeline, and other fuels deposit sulfur on the pipe. When the ULSD fuel goes through, it leeches the sulfur back into the fuel, and has been known to raise it above the limit. Therefore, in some areas, they are trucking the fuel verses pipeline.

However, it's just a lot less headaches to raise the diesel prices since there are fewer diesel people to complain. Sure, it's passed on the the people that run gassers, but through added costs to merchandise, food, etc. Then the only people that catch hell are the stores. Go figger....

People need to realize that higher diesel prices affect everyone even more than higher gas prices.

Shorebilly · #11 12-07-2006, 05:29 PM

The closer to $3.00/gal Diesel gets.....the better Bio-Diesel looks......

Personally, I am in the locating parts and tanks mode of my Bio-Diesel project. Also, I still need to change some more of my fuel lines.....if all goes as planned I should be running B-100 when the weather warms up.

Let the anti-Christian Arabs see of they can make some petro-bread.....

SB