Why is diesel more expensive that gas now?

[Bob Foster]

Doesn't make sense to me. It is a less refined product than gas and made from the same old squished bugs.

 

[steve frasier]

they blend at least 5% biofuel into the diesel here

 

[Dolly Llama]

"now"??

always was more expenive here.
'least for the last 8-10 years or better.
roughly consistant at 15- 20% more expensive

It's running $.70 more pr gal than reg gas right now


..L.T.A.

 

[Nate The Great]

It has always been expensive here in Hawaii..

$5.39 gllon for bio diesel.

gas is $4.39.


I'd go out on a limb and say the reason it costing more is diesel gets better mileage than gas. they're always gonna make money one way or another..

 

[FB7777]

they manage to make 10 gallons of diesel per barrel vs 20 gallons of unleaded gasoline per barrel

Diesel has been more expensive than gas here for quite a few years

 

[Lee Stockwell]

Our one ton diesel van gets MUCH better mileage than even our smaller gas vans. Also blows the doors off them, loaded or not.

 

[Fred Homan]

Bend over....They get us one way or the other.... :shock:

 

[SRI Cleaning]

They know they have the world by the balls, because deisel is required by many many huge companies.

 

[Scott]

Fred - I haven't heard that before. Do you have a reference to a bbl of oil producing 10 gallons of diesel and 20 of gasoline?

What I've heard makes sense:

1) Supply/demand. The majority of drivers in the world use diesel fuel in their vehicles. Trains and large trucks use massive amounts of diesel.

2) Since 2006, the US gov't has required refiners to make ultra-low sulfur diesel, which makes it more expensive than gasoline to refine.

3) Refineries are operating at max. capacity.

Just wondering, though, are we starting to see the signs of an oil correction?

Not to say that diesel will be less than gasoline, but crude has dropped almost $30 a bbl in a couple of weeks. As we pass through hurricane season here, and as it becomes less likely the US experiences a catastrophic storm or 2, I'm speculating that oil will continue down to around $80/bbl. Just a speculation, though. Oil rose too much too quickly. Airstrikes on Iran - or even strong threats - will negate any correction as Iran can shut down the strait of Hormuz pretty easily and significantly disrupt the delivery of about 40% of the world oil supply.

But Israel and the US seem to be bowing to pressure to back off, which will be good for temporary gas prices but probably bad in the long term once Iran has The Bomb.

I'm off to Summerfest. Catch ya later!

Scott

 

[rhyde]

We haven’t build a new refinery in the USA for 30+ years we are importing more of our refined fuel.

ULSD diesel is more expensive to refine, and when we switched over to ULSD not all the refineries in the USA tooled up for it instead we export regular diesel to Mexico/ Latin America and import ULSD from Canada and Mexico refineries.

 

[steve r]

i watched something on cspan here about a month ago.there was 4 or 5 ceos of major oil companies being questioned by a govt panel about the fuel prices.they stated the supply is good there are no shortages.refineries are running at about 80% on average.the 80% i above where they normally run.
they blame the speculators of course but admitted that if they were to get refineries up to 90% fuel prices would fall dramatically because they would flood the market.so in other words it aint going to happen.

and to answer the question someone else got it right already,
supply and demand.theres more demand for diesel than what is being produced whatever those numbers are.