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Price of Diesel Fuel Vs. Gasoline


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Filled up my pickup (gas) today. Yikes! :(

 

Anyway, I was noticing Diesel was 10 cents CHEAPER than low grade gas. When did that happen? I really haven't been paying attention, but last I knew diesel was up there with mid grade or more in price. Today, diesel was 2.49 and low grade was 2.59 a gallon.

 

Did the price of gas shoot up so fast they forgot about diesel?

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When I bought my Sierra, diesel was atleast a dime, sometimes a quarter cheaper per gallon but then last year it flip flopped (heard it had something to do with heating oil) and it was more expensive. Now just this week around here in Milwaukee, it went back to being cheaper again.

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in los angeles gas is around 270 for regular all the way up to 315 for premium, its not crazy to see diesel at 330... its a crazy world... in iraq gas is 5 cents a gallon if you get it under the table and a mind popping outrageous 55 cents a gallon at a retailer, its still 8 bucks in the uk though

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As for the real question asked here, long ago back in the early 70's when we had the so called "energy crisis", diesel was far cheaper than gas. That was what first spawned a bunch of new car designs all sporting new diesel engines.

 

It was/is my understanding that diesel and gas are the same product except that diesel is less refined. The way it was explained to me (could be wrong) is that crude oil is refined and refined and refined. The easiest to make is home heating oil which is nearly the same as diesel (actually I think it does burn in diesel engines but if you get caught running it you pay heavy fines because you cheated the gonverment out of fuel taxes). If you keep refining oil you get kerosene, then gas, then white gas (Coleman lantern fuel).

 

If this is correct then no matter what diesel should be cheaper, is cheaper to manufacture, than gas. What I don't know is how it is taxed. Could be the tax on it is so high that it ends up costing more than gas.

 

Anyone in the industry know for sure?

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Speaking for the moderators, let's keep politics out of here. That's one of the big no-no's for the board. Opinions, as they say, are like a-holes: everyone has one. Debates like this are best left to the chatrooms, not here. Hate to be all Big Brother about it, but it's been said time and again that politics and other hot-button issues like it aren't welcome here. :P

 

Let's keep it civil, otherwise the big bad X will be put into power. 'K? :driving:

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Of course the major reason for the big change in fuel prices is the price of Oil. It's gone from $30 a barrel to over $65. I just saw something today where the analysis’s don't see it going below $60 for the next year or more. That to me means never.

 

I think they say that the equivalent price of oil with inflation in 1980 was about $80 or $90. We got a way to go!!

 

I think a couple major things happened to cause the price of Diesel to exceed the cost of gasoline. One I think is that many areas required tightened emission specifications on their fuel. I expect that it that is the majority all fuel is then made to that spec.

 

The major reason I expect is that China bidding real hard on Diesel as it is their prime fuel.

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