Diesel Nearing $4/Gallon Here! - PeachParts Mercedes-Benz Forum

nhdoc · #1 03-07-2008, 07:15 AM

Seems like the price of Diesel is going up every day or two while gas remains relatively stable at just over $3 around here. Now the price difference between gasoline and diesel is greater than at any time I can remember (the good old days when diesel was cheaper than gasoline are gone forever I guess).

So the question is this...how large does the differential in price need to be before diesel cars lose their premium in the marketplace? I think we're already seeing it to some extent as I have noticed several TDI VW's for sale with historically low asking prices but our prized Mercedes have not been hit too badly. I mean, if we can argue that our diesels get 30% better economy than gassers but the fuel is 30% more costly then there's little advantage to driving one...I'm actually starting to be glad I ordered a C300 instead of buying a new Bluetec.

#2 03-07-2008, 07:24 AM

Another fuel price thread!

TDIs are new plastic economy cars, MB's are luxury cars. In the end the MB is still a high-end car no matter what engine it has. How many $30,000-$39,000 cars are being sold today with a small V6 like the C300 or $50,000-$55,000 like the E320/E350? Most average cars in that price range have a V8.

JimFreeh · #3 03-07-2008, 08:22 AM

It's not just the percieved diesel economy that is keeping the old Benz diesels high in price, it's also the WVO phenomonem.

Jim

SwampYankee · #4 03-07-2008, 08:28 AM

And in the summer the gassers will be paying more than the oil burners.

#5 03-07-2008, 08:51 AM

Both gas and diesel are going no-place but up for a while. Crude closed at $105 and change, the dollar is still very weak, and OPEC announced they are not going to increase production again and that they are not going to meet again until sept. I don't think retail prices will even out until they both get up to a reasonable level. Just buy whatever car you like, it won't really matter. If you care about the price of fuel, buy an econo-box (gas or diesel). Maybe there will be some good deals on diesels if the pubic panics (as usual), I wouldn't mind finding a cheap TDI for my daughter.

AdvisorGuy · #6 03-07-2008, 08:59 AM

I'm neither a democrat or a republican but my prediction is this: Fuel prices will rise for a while longer. Then, just before election time, it will drop dramatically. Not overnight but it will drop. We have short attention spans, remember ? Prices will start to fall after Labor Day and Mcain will be all over it... That's only my opinion, I could be wrong. I base this opinion on having lived thru 8 previous presidential elections that I was old enough to remember.

argus445 · #7 03-07-2008, 09:06 AM

3.79 in eastern TN wow! anyone got any good prices on used wvo oil or 55 gallon of fresh veg oil non food grade would be ok lol

#8 03-07-2008, 09:12 AM

Quote:

Originally Posted by AdvisorGuy

I'm neither a democrat or a republican but my prediction is this: Fuel prices will rise for a while longer. Then, just before election time, it will drop dramatically. Not overnight but it will drop. We have short attention spans, remember ? Prices will start to fall after Labor Day and Mcain will be all over it... That's only my opinion, I could be wrong. I base this opinion on having lived thru 8 previous presidential elections that I was old enough to remember.

They may blip down before the election, but the long term trend will still be up. One of the biggest factors is the weak dollar, and I don't see that turning around anytime soon.

LUVMBDiesels · #9 03-07-2008, 09:35 AM

Quote:

Originally Posted by Craig

They may blip down before the election, but the long term trend will still be up. One of the biggest factors is the weak dollar, and I don't see that turning around anytime soon.

I think a big factor is speculators. However now I am staring to hear "BUY GOLD" ads onthe radio instead of "BUY OIL FUTURES". Maybe we are going to head into a bursting oil bubble soon

Gas at $0.95/gallon Diesel at $0.79 oh, what a dream!

#10 03-07-2008, 09:48 AM

Quote:

Originally Posted by LUVMBDiesels

I think a big factor is speculators. However now I am staring to hear "BUY GOLD" ads onthe radio instead of "BUY OIL FUTURES". Maybe we are going to head into a bursting oil bubble soon

Aside from the radio scams, speculators are responsible for some of the volatility, but not the long term trend. The simple fact is that energy prices in the U.S. are much too low and they will adjust upwards. As long as the consumption rate exceeds domestic production, there will be significant imports which will contribute to the trade deficit and further weaken the dollar. This won't turn around until U.S. prices approach world levels, probably a good thing in the long term.

ARINUTS · #11 03-07-2008, 10:10 AM

$4.25 is the norm in the NYC area for Diesel. I have seen as high as $4.49, and as low as $3.99. I'm wondering what other alternative fuel I can burn that won't cost as much, Can't do WVO in this Cold. I remember when a fill up cost $20. now its almost 3 times that.

LUVMBDiesels · #12 03-07-2008, 10:45 AM

Quote:

Originally Posted by ARINUTS

$4.25 is the norm in the NYC area for Diesel. I have seen as high as $4.49, and as low as $3.99. I'm wondering what other alternative fuel I can burn that won't cost as much, Can't do WVO in this Cold. I remember when a fill up cost $20. now its almost 3 times that.

Look for a bioDiesel cooperative and get a 50-50 blend for the winter. You can go to a 100% biodiesel (not VO, SVO, WVO, or Alberto Vo5) in the summer.

There is a good one up near New Paltz, but that is 80 miles from NYC.

Dee8go · #13 03-07-2008, 10:50 AM

Are you buying biodiesel in the N Virginia/Washington, DC area now? How does it compare cost-wise to straight diesel? I thought it was not really cost effective as a replacement for just diesel, but I'm not sure where I got that idea. I'm ready to reconsider, though!