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I do tow and I do work the heck out of my trucks. Wish all you guys would go back to gas trucks so that there would be a surplus of diesel and the price would drop back lower than regular gas.
Nipperdog, I put a 145,000 on my 2011. Minor problems, So I'm hoping for a 200,000 mile or more truck in 2015. And I'll be looking at a 2020 model
Way back when....when low sulfur fuel hit the market. It was said the price rise on diesel was because of extra process to get sulfur out of fuel.
Now we have ultra low sulfur fuel. Guess what we pay thru the nose. Thanks epa.
Right now, fuel prices at the pump seem pretty fair. I paid $2.21 a gallon to fill up yesterday. In my state, the combined federal and state tax on diesel is $0.48 a gallon, so deduct that: now we are at $1.73 per gallon. However, then you need to factor in the cost of raw crude by the barrel, refining cost, and distribution costs. Right now, a barrel of crude (42 gallons) makes 12 gallons of diesel and 19 gallons of gas once refined. Without doing additional math to figure out the exact cost per refined gallon (gas will be cheaper than diesel), the overall average cost per gallon of refined diesel / gas is about $1.36. That leaves $0.37 per gallon to cover distribution costs (transport and sales). Now keep in mind the $1.36 earns the refiners "zero" profit - of course they have to make something, which means there is actually less than $0.37 for distribution. Distribution means a fuel wholesaler buys the refined gas or diesel, than transports it to individual stations, and sells it to the station. Of course they need to cover the cost of transport and still make a little money when they sell to the station. Finally, the station needs to make a few pennies on the fuel they sell - so overall, we are doing very well.
Right now, fuel prices at the pump seem pretty fair. I paid $2.21 a gallon to fill up yesterday. In my state, the combined federal and state tax on diesel is $0.48 a gallon, so deduct that: now we are at $1.73 per gallon. However, then you need to factor in the cost of raw crude by the barrel, refining cost, and distribution costs. Right now, a barrel of crude (42 gallons) makes 12 gallons of diesel and 19 gallons of gas once refined. Without doing additional math to figure out the exact cost per refined gallon (gas will be cheaper than diesel), the overall average cost per gallon of refined diesel / gas is about $1.36. That leaves $0.37 per gallon to cover distribution costs (transport and sales). Now keep in mind the $1.36 earns the refiners "zero" profit - of course they have to make something, which means there is actually less than $0.37 for distribution. Distribution means a fuel wholesaler buys the refined gas or diesel, than transports it to individual stations, and sells it to the station. Of course they need to cover the cost of transport and still make a little money when they sell to the station. Finally, the station needs to make a few pennies on the fuel they sell - so overall, we are doing very well.
THANK YOU!!!!!!!For putting this into proper perspective! Even when fuel was $4.00 per gallon, when I looked at the amount and type of labor it took to fill my tank, it was still way cheaper than when fuel was $0.30 per gallon! Back when fuel was "cheap" it took at least a half day of hard physical labor to fill my tank! When it was "expensive" all it took was a couple hours of sitting on my azz answering telephones and directing trucks to fill my tank!
No problem - oil and fuel companies get a bad rap for price gouging and profiteering, but in reality there is a ton of work that goes into actually pumping a nice gallon of clean diesel or gas into your tank. There may be times when the oil companies are doing very well, but right now I would say profits are pretty tight. I'm not defending them - I think the US paying out grant money to Exxon - Mobil for "exploration" is insane especially in light of profits in recent years, but the consumer should at least understand what they are griping about.
Of those three components - raw crude, refining, and distribution...distribution is quite inelastic. Rarely do the wholesalers, transport, and convenience store owners make any more or less than they typically do on average. Refining costs can fluctuate some, based upon refinery downtime, but really its all about supply and demand for crude. Right now we have a supply glut but production is not slowing down since OPEC members have failed game theory too many times - so for the time being, I have no problem paying $2.21 a gallon!
Oh by the way, I don't tow, or haul anything. Just like to drive big Trucks and Diesels. So basically my Truck is a 8000lb, 440hp, Grocery Getter.
What a relief! I thought it was just me!
Although I do occasionally pull a 21' bass boat, I have absolutely no rational justification for the behemoth parked in my driveway, except that it's awesome.
It has been very reassuring to see a lack of serious problems with the new 6.7 Engines Posted here. My previous Truck had one of the earliest 2010 built 6.7s, and I stopped checking into this site because all of the Horror Stories made me too Nervous. Although my 11 only had 48K on the Clock when traded, and had never given me any problems I was Paranoid every time that I drove it waiting for that Sound or "Pull Over" message. Now with a Fresh 2016 and a new Warranty we're planning some long trips. Oh by the way, I don't tow, or haul anything. Just like to drive big Trucks and Diesels. So basically my Truck is a 8000lb, 440hp, Grocery Getter.
Same situation with my 2015 Tuxedo Black XLT. This weekend I'll be hauling a Christmas tree from Walmart to my daughters condo. LOL
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