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Crawlers, Dozers, Loaders & Backhoes Discussion Forum

Diesel price Higher then Regular gas price

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empty pocket bo

10-13-2005 20:13:40




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I remember not that long ago when on the road diesel fuel at the pump was a lot less then regular gas. Now diesel is at a 84 cent premium over gas, what gives?




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seann

10-13-2005 20:57:09




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 Re: Diesel price Higher then Regular gas price in reply to empty pocket book contrac, 10-13-2005 20:13:40  
From what I've been reading there are several reasons for this, which almost certainly includes at least some gouging from the oil companies and distributors. But right now the main reason is because much of the US refinery capacity has been curtailed this summer through winter as a consequence of the hurricanes (which affects oil prices worldwide). Plus in Europe a large number of people have been heavily switching to diesel fueled cars for over a decade now (increasing demand there). Couple that fact with increasing global air travel (jet fuel is very similar to diesel fuel), the enormous growing demand from China for energy (including diesel fuel in huge quantities), and the oncoming winter and sure demand for heating oil (also very similar to diesel) has culminated in super high demand and very tightened availability for diesel grade fuels.

Another compounding reason are the new, stricter environmental mandates dictating lower sulfur levels and particulates in diesel fuel exhaust (lowering soot and sulfur emissions). This increases the price of refinement considerably, especially as the regs get tighter and tighter. Add this factor to the ever present high demand + low supply = high prices equation and this is what we get. In short, it's an energy crunch.

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old

10-13-2005 20:46:42




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 Re: Diesel price Higher then Regular gas price in reply to empty pocket book contrac, 10-13-2005 20:13:40  
To many people jumped on the diesel wagon and got supply/demand off set



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