So I've been searching on here and what I've found is that diesel is in higher demand so it costs more than gas despite being cheaper to refine. Surely that's not all there is to it!?!?!? Somebody want to explain to a newb?

Don't get me wrong, I'm not necessarilly complaining, I knew what I was getting into when I bought my 7.3, but I'm just curious.

 

Supposedly, world wide demand for diesel is higher than gas. In the 2 big developing nations, India and China, they are using diesel in construction at an incredible rate, which drives up global demand. I find it interesting, however, that in Mexico when it was over $4 a gallon here this summer, guys that live near the border were reporting $1.50 a gallon prices in Mexico.

 

diesel is still $1 more per gallon than gas on the wholesale market. that is why it is still $1+ more than gas at the pump.

edit: diesel in Mexico crept up to almsot $2.50 gallon this past summer, it was $2.

 

What I have heard ,is , they make most of a barrel of oil into gas ,,leaving the smaller amount of diesel at a premium....

 

I have heard that as well.

 

BTW, I saw $3.09 here today and gas was $2.49 regular.

 

I saw diesel at 2.97 today

 

Over here in Kansas gas is 2.09 and diesel is right at 3 bucks

 

man i am totally jealous!!!! Deisel here is like $1.22 a litre...thats like $4.80 a gallon!!! i would be happy if it went below a dollar a litre...very happy. lol its worth it for these trucks though. I dont want a hyundai.

 

I heard that since the 07 ultra low sulfur came out, not all refineries decided to keep doing diesel because of cost so some of them dropped off the market. Leaving the few left to do all the fuel which again creates a supply and demand situation. FWTW

 

You guys are right about the demand issue. Hopefully China and India's economy will slow down with the rest of us and it will lessen the demand. Another issue is that there isn't enough refining capability for diesel. The United States is the largest exporter of diesel on the planet. I believe we produce over 75% of the world's diesel. Time to up the refining or atleast figure out a way to stop shipping diesel back to the middle east!

 

When the refinery is cracking hydro-carbons down for use they are collected by carbon count & weight.

# gasses
# naptha
# gasoline of various grades
# lubricating oils of various weights and grades
# kerosene of various various grades
# jet fuel
# diesel fuel
# heating oil
# heavy chemicals

The quantity of diesel produced can further be portioned out to the surrounding fuels. In the summer when travel is popular a chunk of the diesel supply can be usurped by the demands on jet fuel. And in winter the supply can help augment the heating oil market.

Either way it directly impacts our pockets.

One of the items that isn't well known is that China is heavily revamping their electrical generation capacity by switching many of their older coal plants to oil. For some reason they don't seem to be able to supply their own markets with indigenous produced coal, even though they haven't completely developed their existing fields.

Did any of you notice this summer when prices were at their highest and the roads were noticeably emptier; that the Federal Department of Transportation was whining about the loss of fuel tax revenues and how it was already beginning to impact their highway upkeep budgets?
Dealing with the Decline in Gas Tax Revenues Due to the Decline in Driving | New America Blogs

 

For the first time in a long time, the following is what I saw this evening as I was out working.

Diesel $2.97
Gas 87 $2.99
Gas 89 $3.09
Gas 91 $3.19

This was in La Puente, California

 

Lets pray that becomes the new trend!

 

That used to be the old trend, and quite the norm about 5+ years back.