Hey guyz anyone know why Diesel ever got more expensive than gasoline? I mean isn't Diesel easier to produce? And who ever goes to put diesel in there cars or trucks almost always fills it up. So whats going on what happened 3 years ago for the increase in diesel prices I mean not much has changed in how many people really drive diesels. Who remembers when Diesel was 80 cents in NY man those were the days and I didn't have my diesel yet was always jealous of my uncle and when I got mine, prices started going up, now that saddam is holding the gas will that affect diesel also..

Taxes. When the first Arab oil embargo hit the US, the government saw how much consumers were willing to pay for fuel, then when the embargo ended and crude oil prices dropped to levels pre-embargo, the government stepped in and added taxes to fuel since consumers proved they would pay more. Pre-embargo I remember gas wars were the price dropped to like 15-17 cents per gallon, after the embargo I can't recall paying less than 30 cents. The next embargo pushed prices even higher and more taxes were added when crude oil prices dropped. As I recall, you're looking at about $0.35 Federal tax on diesel plus whatever the state adds on (in TX about $0.18). My figures may be off a bit, but they're close and I believe you get the picture.

The government justifies the tax on diesel because the heavier weight of big rigs (80,000 lbs.) causes more wear and tear on the roads (true). Other vehicles using diesel are insignificant compared to heavy rigs as to the amount of fuel used, so the government does not have a lower tax for smaller vehicles using diesel - plus it would be an administrative/control nightmare. Also, farm and off-road diesel users do not pay the tax, and their diesel is dyed red to show it is for farm/off-road use. Getting caught with red-dyed diesel in your tank is a fineable offense.

Tom

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America: Land of the Free!

1977 300D: 300,000+ miles

American Honda: Factory Trained Technician & Honor Grad.
Formerly:
Shop Foreman;
Technical Advisor to Am. Honda;
Supervisor of Maintenance largest tree care co. in US for offices in Tex.

In B.C. our price of diesel remains pretty constant $.49-$.59Cdn per litre($1.14-$1.38US per US gallon),though gas bounces around in price.

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Democracy dies in darkness, you have to kick at the darkness till it bleeds daylight

I recently returned from a trip to France. The diesel there is about 20% less than reg. unleaded. There are a lost of trucks on the highways, but I understand they are not as heavy as trucks in USA. Also a lot of the cars burn diesel. It appears most of the taxis in Paris are MB diesels. I don't know why their diesel is priced the way it is.

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Gary
85 300D Ivory, 202,000
Beatus exsisto Jesu, verus et Deus verus Vir

I think the recent price fluctuations have been because of taxes and supply. The price of diesel has always changed with the seasons though because of the heating oil issue that TXBill brought up. The oil refining process separates crude oil (or sometimes gasoline condensate which is almost as dense as crude oil) into levels of weight (ie. gasoline, lubricating oils, kerosene, diesel, etc., not in that order) and the weight and density of diesel is very very similar to home heating oil so in the winter, there is a bigger demand and thus the higher price. In the summer, there is a large surplus because of the lesser demand for those oils and so the lower relative prices.

This past year or so was strange though in that the fuel prices didn't seem to change in the same proportion that they always have.

Alex

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1983 300D (parked for four years)
2012 VW Sportwagen TDI Manual
2001 Miata SE
1962 Chevrolet Corvair Rampside

Quick question:

My dad siad heating oil is chemically the same as diesel fuel except its dyed to differentiate it (since its not taxed, it can be bought cheap).

Is it really exactly the same stuff? I have a few farmer friends that heat their house with this stuff. Can probably get a tank each month for next to nothing.

Years ago on the farm, we used to run everything out of the same tank--diesel fuel and fuel oil. Maybe it's changed since I was on the farm (1980), but I suspect it's still the same fuel.

So the heating oil we use for our homez are the same like diesel is that a fact? hey has anyone ever heard of the movie lost highway I was putting diesel in my car the other day and this guy was admiring it telling me that he saw that movie and the my car was in it and this guy puit a 1400 HP engine it, I would really love to see that movie, if it's even true.

I never knew that heating oil was basically diesel. No wonder they smell the same (or at least so according to my nose or whatever receptors inside it...:p )

I was quite surprised when I first arrived in the US, because back home Diesel is VERY VERY cheap...
Even gas is horribly cheap. For the 98 (Unleaded), it costs about $0.2 / L and people complain...

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2008 BMW 335i Coupe

Diesel fuel, home heating oil, kerosene, and jet aircraft fuel are all similar. There are slight differences made in the formulation at the refinery so the resulting product will work best for that particular application and filtering to remove impurities/crud especially important for diesel and jet fuel. In a pinch, they are inter-changeable - for how long, who knows especially using kerosene or home heating fuel to replace diesel and jet fuel.

My $0.02 worth.
Tom

__________________
America: Land of the Free!

1977 300D: 300,000+ miles

American Honda: Factory Trained Technician & Honor Grad.
Formerly:
Shop Foreman;
Technical Advisor to Am. Honda;
Supervisor of Maintenance largest tree care co. in US for offices in Tex.

Jet fuel = to diesel woah where did you get that info only if our carz would able to go as fast as a jet could oh man would that be nice.

I have actually heard about that.
I saw in a British Magazine about this Jet-Powered bike.
It has a single-gear transmission and the bike is diesel powered.
The turbine is a used Helicopter Turbine.

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2008 BMW 335i Coupe