Re: OT Deisel vs heating oil $

Posted by john in la on August 31, 2006 at 07:26:25 from (68.222.52.44):

In Reply to: OT Deisel vs heating oil $ posted by MN Bob on August 31, 2006 at 06:16:34:

You have to consider that fuel is made one week and used the next. Yes they have many big tanks but nothing on the order of what you think in storage.
So if a cold snap is forecast or now this time of year people are filling home storage tanks it depletes supply. The NE still uses a lot of diesel for heating.
One of the big reasons for diesel price jump is pickups. Diesel may cost less to refine as it is one of the first things skimmed off you still only get XX amount of diesel from a gallon of oil. In other words if everyone used diesel for everything; and I mean everything the price of propane and gas would fall sharply because of over supply. It is the balance of propane; gas; and diesel use that keeps the price uniform.

We did have a waiver to use no tax fuel after the storm but that is history. It did not save anything because we still had to pay the tax. We just could not get enough road diesel in the tanks fast enough. With several refineries down the supply was short and the lines of trucks was long. To help out we got a wavier. This allowed us to load faster because we could load in the off road lane and reduced run outs at the loading racks. Now that all the refineries are back up and running it is not needed any more.

We were even given preference in traffic lines. Any gas tanker could come to a road block and run the shoulder like a police car and was allowed to cut in ahead of everyone.

And please tell me you do not believe every thing you hear on TV about New Orleans???????????

Replies:

• Re: OT Deisel vs heating oil $ MN Bob 08:41:28 08/31/06 (0)

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