Douglas DC-9 From United States of America, joined Sep 2001, 304 posts, RR: 1 Posted (10 years 4 months 3 weeks 6 days 3 hours ago) and read 3946 times:
Why is DIESEL so expensive? I'm an owner/operator trucker and these fuel bills are killing me! Here in Wisconsin it's currently $2.07 for diesel and $1.98 for regular! And that 2.07 REALLY adds up when you've got 350 gallons of diesel in your two fuel tanks and get 2-4 miles to a gallon (on a good day)! Why is it so expensive? It is cheaper to make, and the demand for it is less then gasoline, so why the high prices?
Springbok747 From Australia, joined Nov 2004, 4387 posts, RR: 10
Reply 1, posted (10 years 4 months 3 weeks 6 days 2 hours ago) and read 3901 times:
It is cheaper to make, and the demand for it is less then gasoline.
Uh...I thought diesel is in more demand than petrol. I'm assuming this because most of the trucks and other heavy equipment are diesel vehicles, and they have huge tanks...so diesel is being used up faster than petrol.
Kay From France, joined Mar 2002, 1887 posts, RR: 3
Reply 5, posted (10 years 4 months 3 weeks 6 days ago) and read 3867 times:
Didn't know Diesel was more expensive in the US??
It sure is the opposite in Europe. Kind of discourages you of liking cars and wanting to buy one. Unless they find a way to make Diesel engines rev happily to 8000, and not sound like a Beetle on idle (the first beetle).
Fuel is sooooooooooooo expensive in Europe!!!! :'(((
Pacificjourney From New Zealand, joined Jul 2001, 2734 posts, RR: 7
Reply 8, posted (10 years 4 months 3 weeks 5 days 22 hours ago) and read 3835 times:
Upon importing or pumping up crude oil the refining process produces many grades of petroliums and oils. These range from high end such as Jet A1 fuel and the like down through petrol, diesel, kerosene and at the bottom the stuff they use for bituman and vulcanising rubber and the like.
So, having refined crude oil to get petrol you have certain by-products such as diesel wether you want them or not. The price these then sell at is of course determined by demand. Demand in the US for diesel is high while in Europe, Japan and New Zealand for example it is lower.
Freight is mainly transported by truck in the US and trains still run on diesel so it is a higher demand product than say NZ or Japan where most railways are electrifed and more use is made of coastal shipping thus diesel sells for about 60% the price of petrol in Japan and about the same in NZ i.e. they sell it cheap to ensure they get rid of it.
Fastair From , joined Dec 1969, posts, RR:
Reply 9, posted (10 years 4 months 3 weeks 5 days 21 hours ago) and read 3828 times:
It pollutes more too,
I disagree. Once upon a time, yes they were dirty, but a modern common-rail Diesel (or even the generation before that) is just as clean as a petrol equivalent.
It produces more particulates but new diesels have particulate filters which put the diesel at exactly the same level as the petrol engine for emissions. Diesels also burn less to start with, they are simply more efficient.
Of course oil companies are trying to supress alternative fuels such as biodiesel, but when it eventually becomes more easily available, diesel will be the true 'green' fuel.
Captoveur From , joined Dec 1969, posts, RR:
Reply 10, posted (10 years 4 months 3 weeks 5 days 19 hours ago) and read 3813 times:
Diesel costing so much is a major problem in the trucking industry right now.
It is winter, and in Wisconsin the demand for home heating oil (non-tax diesel) is up and that may be some of the reason. However, it is high everywhere else and it has been higher than gas for a long time. I know the fuel prices have driven several smaller companies that I know of out of business.
Part of the problem is demand. Demand for all fuels is at an all time high and we haven't built a new refinery in the US in at least 20 years (it may be closer to 30). The reason for that is the tree huggers and the dimwits in Washington that listen to them have made it cost prohibitive for companies build new refineries.
The dimwits in Washington could fix some of the problem by cutting the federal taxes on fuel, the states could do the same thing. That would assume they were concerned with the well being of small businesses in their state instead of just their budget.
DesertJets From United States of America, joined Feb 2000, 7843 posts, RR: 14
Reply 11, posted (10 years 4 months 3 weeks 5 days 18 hours ago) and read 3800 times:
I've also heard the home heating oil explanation too. Which is pretty similar to diesel fuel. With limited refining capacity and high constant demand for diesel fuel and seasonal demand for home heating oil, diesel fuel normally jumps in price in the winter months. Whereas gasoline spikes in the summer months.
When it comes down to it, it is really simple microeconomics.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
L410Turbolet From Czech Republic, joined May 2004, 5808 posts, RR: 18
Reply 12, posted (10 years 4 months 3 weeks 5 days 17 hours ago) and read 3795 times:
Over here, diesel always used to be considerably cheaper than gasoline. After the recent price surge couple months ago, the prices of gas dropped, but the retailers somehow "forgot" to do the same with diesel so now it's more expensive.
I guess they (along with the governement) take advantage of the fact that trucks and buses all use diesel and are less likely to quit or reduce operations once the fuel gets expensive.
CaptOveur From , joined Dec 1969, posts, RR:
Reply 13, posted (10 years 4 months 3 weeks 5 days 17 hours ago) and read 3787 times:
"Which is pretty similar to diesel fuel."
Home heating oil IS diesel fuel, the people selling it just have to drop a dye tab in (either green or red, I forget) so that someone doesn't use it in a vehicle. The color tells anyone who may check the color of your fuel that you didn't pay the highway use tax.
There is also a lot of new enviromental crap going on with diesel. a few years ago there was a switch from what refiners call high sulfur diesel to low sulfur diesel, which destroyed some older engines. Now there is talk of a switch to an ultra-low sulfur diesel, so look for prices to go up even higher when that happens (costs more to refine). Prices are even going up on the trucks themselves with the new emissions standards being put out for trucks.
Reformulated gasoline is also a reason for higher gas prices... supply issues are still an overriding factor though. Ethanol was supposed to save us all this money when we started burning it, instead fuel prices are steadily rising because of it.
MTBE is going to be the next gas component to go and there is still no better alternative (except tetra-ethyl lead) so that should cause gas prices to rise even more.
TSV From Australia, joined Nov 1999, 1641 posts, RR: 4
Reply 15, posted (10 years 4 months 3 weeks 5 days 16 hours ago) and read 3766 times:
A Yank who knows what Diesel is! After watching a couple of series of "The Amazing Race" where racing Yank couples invariably fill Diesels with Unleaded I was beginning to wonder if any of you guys knew what it was ...
Srbmod From , joined Dec 1969, posts, RR:
Reply 18, posted (10 years 4 months 3 weeks 5 days 13 hours ago) and read 3713 times:
I know my employer is probably wishing all of our delivery vehicles weren't diesels. The last time I filled up my truck, it was right around $90, I remember when it costing around $60. I could care less about the price since we just use a fleet gas card. If I had to pay for my fuel, I'd be complaining too. The seasonal demands affect the price of diesel. When the winter is milder, the demand for heating oil falls, so the price of diesel falls as a result of extra supplies. This is also why diesel fuel is cheaper during the warmer months.
ANCFlyer From , joined Dec 1969, posts, RR:
Reply 21, posted (10 years 4 months 3 weeks 5 days 10 hours ago) and read 3687 times:
I noticed yesterday the cost of diesel in ANC is about $1.98US a gallon. Unleaded is now around $1.68US a gallon.
I can remember, a year ago, the opposite being true. I was always smiling when I pulled my BAFDT up to the Shell station and got away cheaper with 40 gal of diesel than the guy next to me with the Toyota "Speck" . . .
Not any more. SO . . . why does diesel remain higher than gasoline?
Commander Data From United States of America, joined Nov 2001, 46 posts, RR: 0
Reply 22, posted (10 years 4 months 3 weeks 5 days 9 hours ago) and read 3669 times:
I forgot, but I believe taxed diesel is green, and non-taxed diesel (off road diesel) is red. Not 100% sure on that though. Off road diesel is basically for things that don't use roads, ect. Like farm tractors and mining trucks for example. Those miners need it, most of those HUGE dump trucks get less then 800 ft. to a gallon, with an 850 gallon tank. I'd sure hate to foot the bill for a fleet of those beasts!
Despite what most people think, diesel is very clean not to mention VERY efficent! Imagine that big Caterpillar 797 truck running on a gasoline engine, it'd get inches to a gallon. Theres a good reason SUV makers are starting to offer diesels in their larger vehicles-- for the higher MPG's and for torque!