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Why is Diesel so HIGH

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Old 08-11-2005, 10:08 PM
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Why is Diesel so HIGH

I'd like to know why it costs so much MORE for us to fill up our KW & F-250 than it does a gasser. Heck, in our area, diesel costs more than regular.

If I'm not mistaken, it's cheaper to produce diesel than any other type fuel out there.

If you know, or have an idea as to why we pay more, I want to hear it.

Thanks.
 
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Old 08-11-2005, 10:34 PM
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In our area, diesel is more than premium.... by about 15 cents. At the Chevron down the road from work.... $3.20/gallon. I think the Shell was $3.25. Insane.
 
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Old 08-11-2005, 10:51 PM
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#1 reason, ROAD TAXES! Around here, there is about 47 cents per gallon on diesel, about 35 cents on gasoline...
 
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Old 08-12-2005, 12:46 AM
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Supply, and demand...

Supply will be the same.
More people buy diesel vehicles, and get goods transported using diesel vehicles. More demand.
Therefore higher prices.

We are paying around US$5 a gallon here (including transport) at the moment at our cattle station.
 
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Old 08-12-2005, 01:17 AM
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Tonight, for the first time in quite a while, deisel was cheaper than gas, by about three cents per gallon.
 
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Old 08-12-2005, 02:26 AM
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We have a few stations here that have surpassed the 3 buck per gallon for reg.

I haven't notice the price of diesel, but I know it's a bit more.

My bicycle is starting to look better and better.
 
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Old 08-12-2005, 05:28 AM
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Thats a good question. Diesel has been higher then gas the last year an half an in all the years before that it was cheaper. I think its just a racket by the fuel companies to gouge everybody. These oil companies are really raking in the dough arnt they. I wish I owned a oil well right now. An then the goverment comes out an says fuel prices are having no effect on the economy. The economy is strong enough to offset it. Then the guy who says this is loaded with money in the first place an probably has oil stock. Give it time our economy will go to pot because off it.
 
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Old 08-12-2005, 09:52 AM
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It proves that the economy is booming, people and especially businesses continue to buy in spite of rising prices. Demand, here and abroad, is what is driving up prices, not some "conspiracy" among the oil companies that the government can "do something about". The economy may slow because of it, that is a natural correction, like it or not.

Jim
 
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Old 08-12-2005, 01:28 PM
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It may take 5 to 7 dollars a gallon for people to start conserving.

Right now $3.00/gallon is acceptable, but barely.

Just the fact that consumption has not dropped is prof of that.

The economy may be boomimg, if you don't mind minimum wage jobs.

Forclosures are at an all time high. The uninsured grows.

I guess it depends on your point of view.

It's like the old saying, "If you lose your job, it's a recession. If I lose my job, it's a depression".

But then again, this is just another opinion.
 
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Old 08-12-2005, 01:37 PM
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I have an idea. Maybe someone out there with actual refinery experience may be able to tell me if I am right. New refining techniques have made it possible to crack hydrocarbon chains in order to make more high grade fuel (gasoline) out of a barrel of oil. This enables them to turn what used to be diesel into gas. Now refineries have a choice to turn what used to be relagated to diesel fuel, a much bigger portion of a barrel of crude, into gasoline. This has the effect of raising the price of diesel and turns production into more of a supply and demand type of operation.
 
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Old 08-12-2005, 02:22 PM
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I remember when $2.00 a gallon was a lot, now 2.00 is Cheap. Only part that makes me mad is prices are jumping so fast. Actually diesel around here is the same as unleaded (87) about 2.49. If its not important, im not driving there!
 
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Old 08-12-2005, 02:52 PM
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Remember, the diesels can run on farm fuel.
 
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Old 08-12-2005, 03:20 PM
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yeah, they can, but it can be a $1000 + fine if you get caught


 
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Old 08-12-2005, 03:29 PM
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I don't know why its so high, but here Flying J is running 2.939 and Flying J down by Portland OR is running 2.439 at a difference of .50 a gallon I have a tough time believing its supply/demand or refining capacity, some of this is flat out gouging. State Taxes are one aspect as well as federal. Here in WA they voted a .09 cent increase over 3 years, then wisely the citizens got a repeal on the ballot. At that type of price difference adding a 50 gallon aux tank may pay for itself pretty soon.
 
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Old 08-12-2005, 03:30 PM
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Anyone here realize that as the price of fuel goes up, so does the cost of goods?

If the farmers have to pay the higher cost, they can't just eat the cost.

They have to pass it on. So do the truckers.

Like I said in another thread, the farmers are the back bone of this country.

IMHO, we're in trouble.
 


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