someone please xplain to me how gas can go down .28 in three days and diesel goes down .03????????????? Is it not correct that there is less refining in diesel fuel? This stinks

 

buckshot, youre lucky gasoline went down here in Houston also but diesel went UP .40. I am hopeing it is because of "winter diesel"

 

I live in Iowa and filled up yesterday. Gas was $2.55, diesel was $2.99. Hope it comes down soon! I still wouldn't own anything but a diesel. Here is part of an article from the New York Times that explaines the price difference...

"Analysts and industry officials say oil and diesel prices are going in opposite directions because of the refinery outages in the Gulf Coast. Crude oil is refined in a highly volatile process into various fuels like gasoline, diesel fuel, heating oil and jet fuel. But with so many refineries out of service, supplies are extremely tight.

Diesel and related distillate fuels like jet fuel and heating oil are particularly scarce because refineries normally spend the late summer and fall building up those inventories as the summer driving season tails off. This year, though, energy companies have not been able to do as much because of the losses they suffered during Hurricanes Katrina and Rita."

 

Look at it this way:
By far the majority of diesel is used for big truck transportation, for trains, for airplanes, for heating, and for electric power generation. All these uses are fixed; none can cut the usage significantly. When EVERYONE who produces the fuel can get this high price because they are selling all they can make, why would a single company drop the price? If I make 10 widgits and can sell them for $1.5 ($15.00) why in the world would I drop the price to $1.25 ($12.50)? There goes my annual dividend and my shareholders would skin me alive and get a new CEO.
The reason to hate the oil cartel is this: In the 1980's there were about 320 oil refineries in the United States, and the capacity utilization was about 70 percent. Today there are 149 oil refineries, and the capacity utilization is 90 to 95 percent, allowing just enough excess capacity for normal maintenance (Lub and oil, replace the filters, check the tires and radiator to you guys). Nobody can sell any more fuel than they can make, and the price stays high. The oil cartel deliberately made this change. It will stay this way until somebody breaks ranks and 1: Gets a bigger assured crude oil supply, and 2: opens up enough refinery capacity to provide a significant increase in fuel output, and 3: cuts the price because he can sell all of his production for more profit than he could before. OR: 4: We find a way to significantly drop the fuel use by all those "fixed" users, thus freeing up existing refinery capacity - which is highly unlikely over the next few years.
Thats Capitalism in action, folks. We could try Communism; they would take your pickup and convert it into a supply truck for the oil fields, but some commissar would then steal it to 4 wheel drive into his personal dacha over the weekend.
Warren

Warren

 

warren is exactly right, supply and demand... demand is up... supply is down... so prices go up... the only thing you can do on a personal level is use less fuel.. at least you will keep some money in your pocket... it won't effect anything else... now... if you want someone to BLAME... go find the nearest treehuggin'... swampland protectin'... anti drillin'... you're not puttin a refinery in that desert sayin' froot loop and thank him or her personally for the fact that we are paying around $3 for a gallon of whatever..! yes... those jerks that run the EPA and lots of other government regulation agencies have NOT ALLOWED A SINGLE REFINERY TO BE BUILT IN THIS COUNTRY IN OVER 25 YEARS....! you can say the same for nuclear power plants...! the cheapest... safest... AND CLEANEST way to make electricity... but NOOOOOOOOO..! WE CAN'T DO THAT...! YOU MIGHT HURT SOME TADPOLE POPULATION..! OR CAUSE SOME HABITAT FOR SOME ENDANGERED FERN TO DISSAPEAR...! we can all plan on living with our dependance on foriegn oil, and now, FORIEGN OIL PROCESSING...! have you ever heard of IRVING OIL..? we have them everywhere here in NEW ENGLAND, and that company is a CANADIAN COMPANY..! i do not have anything against my neihbors up north, but the reason why they are here selling gas and diesel and propane and heating oil is simple... THE AMERICAN OIL COMPANIES CAN NOT REFINE ENOUGH OF THESE PRODUCTS FOR AMERICAN CONSUMERS WHEN TIMES ARE GOOD..! thanks to a couple of bad storms... times are far from good... next thing you know, we will be buying oil from some MEXICAN OIL COMPANY...! if we aren't already...! sorry for the long post... i just wish someone would have stood up to those politically correct evironmentalist jerks and told them to SHUT THE HELL UP...! we should have done that 20 years ago...! we might be wearing a VERY different pair of shoes today..!

 

LOL, like your style Johnny8. Both my wife and I feel the same way.

 

There is no shortage. Inventories are lower than "ideal". What's funny is there is a lower inventory of gasoline than diesel/heating fuel (comparing normal inventory levels). However diesel continues to go up without a real solid explaination. I've seen reports ranging from winter conversion is to blame, hurricanes, and even European demand for diesel (that's neat, the US refines it's own diesel).

It all comes down to $$$$$$. That's it.

 

heh.. sorry again for such a long post.. but man..! that topic... i don't know why but it really gets my blood to boiling..! i just wish there were some way we could fix things for the short term.. but there is no easy fix... i did see something funny the other day... an ad on tv promoting NUCLEAR POWER...! the re-education of America has started... people will begin to understand that the politacally correct way of doing things is the WRONG way to do things..! and the NEXT thing we need to fix is the borders... it's WAY PAST TIME to get control over who comes into this country... sorry again for the long post, but we the people need to WAKE THE HECK UP...!

 

diesel is 3.22 and gas is 2.41 explain that difference to me. 1000 miles in the last 2 days averaging 11 mpg (towing fairly heavy of course), tell me if that isnt getting shafted a whole lot. But what am i supposed to do, let everyone elses crap sit in my shop? Uhhh i think not or i would be starving bc i would have no more customers. It comes down to one thing.........FUEL SURCHARGE! That cost then gets passed down the line to everyone. Hurting those who have nothing to do with diesel except they buy products that where shipped using diesel. And that includes every single product in this country, right down to the eggs, jeans, light bulbs, etc... that you buy at the store.

luke

 

I've been letting the truck set for the last couple of weeks because I'm lucky enough to not have to depend on it for daily transportation. I drove it about 20 miles last weekend and will do the same next weekend just to keep it from feeling bad. I do love to drive it though, but diesel is $3.14 and gas is $2.31 in my area. Besides the yota gets 30+ mpg. I'd hate to be a farmer or trucker right now that depended on diesel to make my living. I know I'll end up paying the cost in the END either way though.

 

Hey all, It's 3.20 in Nebraska. If I had any extra money after filling the tank I would buy stock in KY Jelly that way I would make a profit somewhere because as hard as they are shafting us in prices, I am trying to make it a little more comfortable, but it's not working. Hate to say it but I went and looked at a dodge mega cab today, but those dumb a**es thought that no one would want a regular cab in it. Plus they want way to much money for a truck that will fall apart within 150K miles. Just my 2 cents. Sorry for the rant.

 

$3.16 this morning at 9am. Was sitting in front of the convenience store where I buy my fuel and and the clerk came out and asked if i need fuel? I said to her, "fuel going up again?" She replied, "yes" and that gas was going down to $2.27. Now if this isn't a real bite in the a$$....almost .90 cents a gallon difference!

 

Anywhere from $3.29 to $3.69 in N.C. We were told by the newspaper just last week that N.C has the 3rd highest gas prices in the nation, with the western portion of the state highest of all!! Gasoline has actually dropped this week to abt $2.59-$2.79.(media-induced????) But Diesel is holding it's own!!!........Way up at the top.

 

3.15 southeast ohio

 

i paid $2.79 for diesel here in NH the other night, but that was at the Irving station, and that company is a Candian outfit... the US stations in town are all at least 10 cents per gallon more... some of them are over 30 cents per gallon more... wtf... over..