Diesel fuel prices out of control ?!?
#1
Diesel fuel prices out of control ?!?
Why is diesel more expensive than friggin 92 octance gas??!!
Last time I looked into buying a power stroke, diesel fuel was less expensive than the cheapest gas found anywhere!!
Will the price come back down??
I drive a Navigator and I'm getting sick of the premium fuel prices and 13 mpg!! So I was hoping to get a power stroke and pay less for gas and get almost 10mpg better. Doesnt really look like that'll happen!
Last time I looked into buying a power stroke, diesel fuel was less expensive than the cheapest gas found anywhere!!
Will the price come back down??
I drive a Navigator and I'm getting sick of the premium fuel prices and 13 mpg!! So I was hoping to get a power stroke and pay less for gas and get almost 10mpg better. Doesnt really look like that'll happen!
#2
#3
Originally Posted by ford390gashog
you really expect 23 mpg? most guys get 16-18 not near 23. diesel is going to be higher for a long time to come.
My question was WHY? Why is diesel fuel more expensive than ever?
I mean, I know all oil prices raised, but it should have been on an even scale! Diesel raised a lot higher than gasoline!
Last edited by Kwikkordead; 12-29-2005 at 06:56 PM.
#4
why? because of the amount of wannabe diesel truck owners out there. heavy diesel trucks fly off dealers lots and most of the time people just buy it to be cool , they really have no use for them. most of the trucks here don't work a day in their lives. most are lifted , sprakly clean mall cruisers.
#5
Originally Posted by jberylecrider
Hey, I said ALMOST 10 mpg better. I have seen plenty of people post that their's gets 18-22 mpg! Those are the people who dont try to race mustangs from stop light to stop light in their big trucks. LOL
I will agree that the diesel fuel prices are out of control.
#6
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#7
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#8
Originally Posted by jberylecrider
My question was WHY? Why is diesel fuel more expensive than ever?
I mean, I know all oil prices raised, but it should have been on an even scale! Diesel raised a lot higher than gasoline!
I mean, I know all oil prices raised, but it should have been on an even scale! Diesel raised a lot higher than gasoline!
One of the main reasons motor fuels are so expensive right now (besides the price of crude oil) in the U.S. is refinery capacity. Refining output varies by season and recently with the hurricanes as well as some refineries being down output has decreased driving prices up.
#9
The other day I got diesel at 2.45 a gallon. I drove past a home heating oil company on the way home and saw it for 2.29 gallon. Now if pump diesel has a state tax of .24 and federal tax of .18 why is there not a bigger difference in price? BTW that 2.29 was the average price for heating oil. I really glad I put that wood stove in last year!
#11
#12
were i live the best u can get diesel for is $2.65 and up. and the prices are totally out of control. if there were so many of the guys that went out and bought diesel's that dont need them they must have all went out and bought them the same day, because the prices went from about $1.55 or so to $2.75 almost over night.
#13
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Originally Posted by ford390gashog
why? because of the amount of wannabe diesel truck owners out there. heavy diesel trucks fly off dealers lots and most of the time people just buy it to be cool , they really have no use for them. most of the trucks here don't work a day in their lives. most are lifted , sprakly clean mall cruisers.
#14
#15
It's actually simple economics here. And private ownership diesel pickups don't even make a dent in what is used, I read last spring that private vehicles used approx 2% of the total used on road, and that doesn't count railroad, or offroad vehicles like tractors. Semi trucks use approx 200,000,000 gallons of diesel a DAY, the railroad burns another 10,000,000 gallons a day and that is average everyday 7 days a week 365 days a year.
Now for hte economics of this. supply and demand is simple, when the oil companies raised the gas prices to over $3/gal just before labor day weekend (the last time that gas was higher than diesel on the average) when they did that there was a 40% reduction in the amount of gas bought over labor day weekend, and thus prices began to drop. Now purchasing gas for running around or vacations is a discretionary expense, and when the price went too high people quit buying it this market forces dropped the price. Now onto the diesel, when they raise the price of diesel this is not a discretionary expense for the transportation industry, and as I said the 2% of private vehicles that use it and are discretionary wouldn't even make a dent in the total if they quit buying diesel at all, the fact is that when the prices jumped the diesel usage dropped by less than 1/2 of 1% so the oil companies figured out they could just keep raising it with not reprocussions on total sales so why drop it. Now I rarely think goverment regulation is ever a good thing, but contrary to guys like Rush Limbaugh market forces of supply and demand cannot work on diesel without totally destroying the american economy (which BTW the oil companies don't care one way or another cause they will still make money no matter what, so the heck with the rest of the country). Ok let me explain why I feel that my previous statement is correct, and someone tell me why it's wrong. First in order for there to be a drop in demand of diesel there has to be a reduction in stuff bieng transported by truck, train, or plane which is literlay everything you own has been hauled by a truck driver atleast once. So in order for that drop to occur that means that factories that produce anything are gong to have to quit having supplies brought in, or shipped out s in order to do that they will have to lay people off, and in order to reduce trucks you are going to have to lay off truck drivers, so say lay off 1/4 of the truck drivers of class 8 trucks and you now have 500,000 people on unemployment, plus the people at the factories that they deliver to and from, and the grocery stores, and warehouses, gas stations, car lots etc, so in order to reduce diesel consumption by a measly 10% you would end up with 10s of millions of people out of work, now if you have that many people out of work they aren't going to be buying anything but the bare neccesities, so more factories, and warehouses are going to have to close or lay people off which is a reallly vicous cycle, and most people call it a depression.
So my conclusion is you are not going to see a reduction in the price of diesel until either the american economy crashes or we have regulations or price controls on diesel forcing the oil companies to keep the diesel profits in line with gas profits or in another way of putting it tie the prices together so the oil companies have to charge the same profit margin on all grades of fuel be it gas, diesel, or kerosene.
Now for hte economics of this. supply and demand is simple, when the oil companies raised the gas prices to over $3/gal just before labor day weekend (the last time that gas was higher than diesel on the average) when they did that there was a 40% reduction in the amount of gas bought over labor day weekend, and thus prices began to drop. Now purchasing gas for running around or vacations is a discretionary expense, and when the price went too high people quit buying it this market forces dropped the price. Now onto the diesel, when they raise the price of diesel this is not a discretionary expense for the transportation industry, and as I said the 2% of private vehicles that use it and are discretionary wouldn't even make a dent in the total if they quit buying diesel at all, the fact is that when the prices jumped the diesel usage dropped by less than 1/2 of 1% so the oil companies figured out they could just keep raising it with not reprocussions on total sales so why drop it. Now I rarely think goverment regulation is ever a good thing, but contrary to guys like Rush Limbaugh market forces of supply and demand cannot work on diesel without totally destroying the american economy (which BTW the oil companies don't care one way or another cause they will still make money no matter what, so the heck with the rest of the country). Ok let me explain why I feel that my previous statement is correct, and someone tell me why it's wrong. First in order for there to be a drop in demand of diesel there has to be a reduction in stuff bieng transported by truck, train, or plane which is literlay everything you own has been hauled by a truck driver atleast once. So in order for that drop to occur that means that factories that produce anything are gong to have to quit having supplies brought in, or shipped out s in order to do that they will have to lay people off, and in order to reduce trucks you are going to have to lay off truck drivers, so say lay off 1/4 of the truck drivers of class 8 trucks and you now have 500,000 people on unemployment, plus the people at the factories that they deliver to and from, and the grocery stores, and warehouses, gas stations, car lots etc, so in order to reduce diesel consumption by a measly 10% you would end up with 10s of millions of people out of work, now if you have that many people out of work they aren't going to be buying anything but the bare neccesities, so more factories, and warehouses are going to have to close or lay people off which is a reallly vicous cycle, and most people call it a depression.
So my conclusion is you are not going to see a reduction in the price of diesel until either the american economy crashes or we have regulations or price controls on diesel forcing the oil companies to keep the diesel profits in line with gas profits or in another way of putting it tie the prices together so the oil companies have to charge the same profit margin on all grades of fuel be it gas, diesel, or kerosene.