Why is Diesel higher than Gas ?

[Cerberus]

Why are diesel fuel prices higher than gasoline prices?

Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline

[freightmaster]

Because than can charge what they want, plain and simple!

[Cerberus]

Quote:

Originally Posted by freightmaster Because than can charge what they want, plain and simple!

lol........

[Bullwinkle]

It's a combination of "supply and demand" and "assraping".

[TN. TRUCKERS WIFE]

Quote:

Originally Posted by freightmaster Because than can charge what they want, plain and simple!

I'm in agreement with you...

[bigtime]

I am not buying any of the excuses. This rise in prices has been a calculated and deliberate event. Oil is a commodity and those who control it realize almost everyone on earth needs it. Its a source of money, our rise in prices is nothing more than a tax. Who makes more off of high oil prices than the governments or exxon? The IMF and the World Bank. Remember all that debt forgiveness business years ago? Guess who is paying for that? You and me!

We need to stop building up other economies at the expense of our own, like china. We need to return to energy independence. Which we can do. Under montana and in alaska are two of the largest reserves in the world, bigger than all of saudi arabia. This is essential to our sovreignty.

I just don't understand how much more they think we can take? Its almost like there trying to collapse the entire economy. Maybe that is the goal. I wouldn't put anything past anyone any more.

Eventually these costs will have to be passed on to the products we buy. You will see a sharp reduction in consumer spending because people have less to spend. Not to mention consumer debt, people are living on credit cards in record numbers. Food prices are through the roof as well or will be. Wait until next year when you want a steak. Ethanol production and fertilizer costs have driven a lot of beef producers out.

One thing is certain, we cannot continue like we are without something giving. Funniest part is NONE of the candidates or the president even cares. They act like world demand will go down in the future and this is temporary! Its very strange and worrisome when you really step back and look at whats going on.

One thing is certain, its going to be a fun ride! Hold on!!!

[TN. TRUCKERS WIFE]

I could go right down the line to everything you said and say, correct, correct, correct. Now the next thing is why in the heck are American's not doing more to save themselves from the theives? That is one thing that has truely amazed me.

[SilverSurfer]

Quote:

Originally Posted by TN. TRUCKERS WIFE I could go right down the line to everything you said and say, correct, correct, correct. Now the next thing is why in the heck are American's not doing more to save themselves from the theives? That is one thing that has truely amazed me.

The magic number hasn't been reached yet. More Americans are becoming concerned, but the majority are still probably fooling themselves into thinking this is going to get better. This Memorial day weekend will be a key turning point for many more Americans...this I believe. And with the July 4th holiday around the corner, there is going to be many, many more Americans still paying for Memorial day when that holiday gets here.

Have you noticed the major news stations are reporting heavily on high fuel prices? Things are about to get serious, I think. Also, the House republicans have introduced another bill thursday (I believe it's called The American Energy Act) regarding domestic production, new refineries and coal-to-liquid fuels. Let's see how this one fairs next week...I believe they vote on it next week. Or should I say vote on several bills regarding these issues next week.

-ss-

[shadowdr]

• High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China and the U.S. and a tight global refining capacity available to meet demand.
• The transition to low-sulfur diesel fuel in the U.S., which is affecting diesel fuel production and distribution costs.
• The Federal excise tax on diesel fuel is 6 cents per gallon higher (at 24.4 cents/gallon) than the tax on gasoline.

The first sounds good but has nothing to do with the American market, after all we use the same oil for both gas and distillates and the percentage used for diesel has been consistent.
The second is at least somewhat to blame, however the price difference was already .50 before the introduction of lower sulfur content. If you recall when lead was removed from gas it only added .10 to the total cost while diesel was .20 lower.I have searched in vain to find how much the newer fuel has cost at the refinery end, but no figures seem to be available.
The last one being taxes is a complete farce, the tax has been there all along even when gas was higher then diesel.
I left out home heating oil because it is not cold now but even when it is it competes against all oil derivatives, not just diesel and should have the same cost increase across the board.
It would seem that no matter where you look you will find the same four reasons for the cost increase of diesel. As you can clearly see they are not based in fact nor do they have any legitimate reason for diesel being higher then regular unleaded.
The real reason is simple, if gas were as high as diesel there would be an outcry from consumers everywhere that would cause a necessity for action from our Representatives. Jacking up the price of diesel will affect everyone later then sooner while the transportation industry subsidizes the price of everyones gasoline. In the long run consumers will pay more for everything down the road but hiding that fact from them ensures stellar profits for big oil for as long as possible.

[yellowbird2525]

Quote:

Originally Posted by TN. TRUCKERS WIFE I could go right down the line to everything you said and say, correct, correct, correct. Now the next thing is why in the heck are American's not doing more to save themselves from the theives? That is one thing that has truely amazed me.

If you truly shop smart: you can spend only $200 at grocery stores; that is what I have tried to say in my postings; if you can SAVE on grocerys; by shopping smart; one of my friends buys NOTHING prepackaged; says is simply to high; makes her own; spends $150 tops on groceries; shop SMART. THEN you truckers who make your living can still do so & cope with the cost of gas; laundry soap is over the top in prices; cheapest here 150 loads $7.99; next cheapest $12.99 for 200 loads; these are GENERICS folks! CHOICES: we have to make everyday; what those decisions are can mean all the difference in the outcome: here is a recipe for laundry soap: $3 cost for 5 gallon bucket: simple, easy, quick; 1 bar Fels Naptha; 1 c. borax; 1 c. WASHING soda; made by Arm & Hammer but DIFFERENT than baking soda; call around to find which store carries in your area due to cost of gas; #1. grate soap to a fine powder if using hand grater with fine grater side; some have only 1 size & that is fine to use; takes longer to dissolve but thats ok; can use food processor, rinsing well of course afterwards, & just grate there also as to long to make fine powder; again, longer dissolving time is all. 2. Simmer soap with 1 c. water in sauce pan until soap melts & is clear. 3. Pour 4 gallons HOT water into 5 gallon bucket, add soap & borax. Mix well until dissolved; 4. Set for 24 hours. Stir; use 1/4 to 1/2 c. per load; Stir periodically until gelled evenly. If want, funnel into old laundry bottles & use the measuring cup just like you did when bought. If you don't have old laundry soap bottles, join freecycle.org & ask for some! freely give & freely receive from this site & other local ones in your area; mine are on yahoo groups. Being new to computer I don't know a lot of others; one here is So Ore Cafe; we put good buys found in town on there to alert other frugal folks; try it & see if you like it. You might also pass along recycled bottles with your recipe in it to them, with an index card with recipe for them to save $ also; If you use fabric softeners you can find receipes for it; if you want to buy fabric sheets shop smartly cuz great deal of difference in cost there as well as everywhere; cut them in half while watching tv; it's not a "chore" then; & use more than 1 x to get best use out of it. & become a miser advisor to all you meet. Good luck!

[yellowbird2525]

just another quick note on ways to save $; go to nurse practioner; I have for years; cheaper than regular doctor; & far more one on one; ask for generics for whatever prescription you might be taking & if paying more than the $4 for generic; ASK your doctor for similar product that is generic; say I simply cannot afford to pay more. Folks: what you don't know is HURTING your pocketbooks! Prescription drugs companies actually pay doctors to promote THEIR products; even knowing side effects can be harmful; WE think the "big lawsuits" hurt them; they don't even blink; even the $500m ones are pocketbook change to them; that is how much they have made off the citizens of the USA. RESIST in whatever manner you can. Be not ashamed to say I want a generic; something similar but that I can afford cuz I can't afford to pay for big prescriptions. If your mother, friends, ANYONE is on prescription medication, go with them and ASK if there is a GENERIC cuz they can't afford to pay more. GET THEM in THEIR pocketbooks folks; THIS is what resistence is all about.

[freightmaster]

Yellowbird,
Please don't hijack this thread?

[BANDIT]

Yellowbird2525, what the hell do your last two posts have to do with "Why is diesel fuel higher than reg. gas?". If you want to post about economics and saving money at the grocery store, start a thread to that effect. Please, like freightmaster said, "Don't hijack this thread too"

[SilverSurfer]

My opinion on the cost of diesel being more than gas has to do with big oil's greed and our government's lack of action to put a stop to the bs.

Our economy's main fuel for our transportation needs is diesel. Logic, and common sense, dictates that there is a larger demand for diesel because of this factor. Big oil is capitalizing on a 65%+/- capital return on their refinery investments and have no intentions on increasing refinery capacity because of this. They are continueing to gouge America because our government refuses to take the action necessary to put a stop to their theivery. Big oil has become emboldened by our President's lack of action, which I believe is deliberate, and our Congress & Senate's inability to over-ride our President to get action.

[Robert929]

Quote:

Originally Posted by SilverSurfer My opinion on the cost of diesel being more than gas has to do with big oil's greed and our government's lack of action to put a stop to the bs. Our economy's main fuel for our transportation needs is diesel. Logic, and common sense, dictates that there is a larger demand for diesel because of this factor. Big oil is capitalizing on a 65%+/- capital return on their refinery investments and have no intentions on increasing refinery capacity because of this. They are continueing to gouge America because our government refuses to take the action necessary to put a stop to their theivery. Big oil has become emboldened by our President's lack of action, which I believe is deliberate, and our Congress & Senate's inability to over-ride our President to get action.

Ditto. I believe the "Founding Fathers" called it capitalism. They charge what they charge, because we will pay for it. Why? because we NEED it!!! This is a no brainer when you think about it. It's right in front of us and yet we still don't see the frickin' smoke screen. While the Schneider's and Swift's, and Werner's of the world purchase fuel in bulk for year 2000 and below prices, the oil companies realize their foolish mistakes and now have to recoup whatever it is they can. Meanwhile, back at the ranch, Congress is going to allow the Frenchies, Germans, and Arabs etc., to purchase the whole damned transportation infrastructure. Turning every major interstate into a frickin' toll road and you won't have a damned thing to say about it. Why, because while we are still not focused on the prize we continue to be selfish and worry about things WE CANNOT control!!!! I'm not giving up and none of us should, but let's just be honest here, it is what it is...Peace.

[freightmaster]

Well said Robert...

[oa_smallfry]

[tongue in cheek]

Since Bush's approvale rating is in the sh*tter anyway, and since most liberal's opinion is that we went to war for oil, by god, F- it, let us get some oil out of Iraq. If nothing else, let it help support us over there in that god forsaken sh*thole.

[/ tongue in cheek]

[freightmaster]

Quote:

Originally Posted by oa_smallfry [tongue in cheek] Since Bush's approvale rating is in the sh*tter anyway, and since most liberal's opinion is that we went to war for oil, by god, F- it, let us get some oil out of Iraq. If nothing else, let it help support us over there in that god forsaken sh*thole. [/ tongue in cheek]

So lets hear why Bush and his CFR cronies really took our sons and daughters over there to be killed and invade a sovereign nation?
The word you use "Liberal" is a total give away that you have been brainwashed by your beloved government!

[Robert929]

Quote:

Originally Posted by freightmaster So lets hear why Bush and his CFR cronies really took our sons and daughters over there to be killed and invade a sovereign nation? The word you use "Liberal" is a total give away that you have been brainwashed by your beloved government!

I couldn't have said it any better freightmaster...... You know you meet some really uninformed people everyday, but damned it's so many of 'em. lmao

[BANDIT]

Quote:

Originally Posted by freightmaster So lets hear why Bush and his CFR cronies really took our sons and daughters over there to be killed and invade a sovereign nation? The word you use "Liberal" is a total give away that you have been brainwashed by your beloved government!

Since you are all asking questions, here are a few more:::Since Bush was put in office to start with under falsified election results, and since almost all of America admits he's a total asshole, Why is he Still There?.....If the 'Thing' that hit the pentagon was a Terrorist flown Jetliner, Why did he fly it into the pentagon, and not the Capitol Building or the WhiteHouse? If he was that good a pilot that he could hit the pentagon (the lowest building in Washington) why didn't he go after the BIG FISH?...I could go on and on so I'll stop there.