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Campfire Kahuna
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It was cheaper than gas forever until diesel pickups became popular in the 90's. Then they jacked it up because they figured if a guy could pay $7000 more for his pickup he could pay more for his fuel too. It's an oil company imposed luxury tax.


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A couple months ago we saw diesel selling for less than gas, but that has reversed, but the cost is still pretty close. If we could read the future and new this was going to continue it would be worth getting a diesel.

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Denver

Gasoline. $2.10

Diesel. $1.99


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Originally Posted by kingston
It used to be that way all the time. I never understood why the tables turned.

I wondered if it had to do with military consumption during the war in Iraq and Afganistan.



Nah, it was because of hurricanes, maintenance, and seasonal change-over.


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Originally Posted by stxhunter
its lower now because the oilfield has crashed, there's not the demand for it like there was when you had thousands of rigs generators and trucks running 24/7.


That begs the question why was diesel so much more before the oil field boom.

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I'm not sure about retail because I buy it wholesale but it's not that much cheaper. I just looked at my bill from April and as of Friday I paid $2.21 for Diesel and $2.18 for Gas.


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Originally Posted by Fireball2
It was cheaper than gas forever until diesel pickups became popular in the 90's. Then they jacked it up because they figured if a guy could pay $7000 more for his pickup he could pay more for his fuel too. It's an oil company imposed luxury tax.


A friend who works at a refinery can't explain why diesel is higher. He said it is cheaper to produce then gas. This was a few years ago.

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.20 cents a gallon less than unleaded regular here in Indy though is is slowly approaching .010 difference. Never understood how a product that was less refined than gasoline could cost more.

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Originally Posted by TXRam
Wholesale cost for diesel is well below gasoline, has been for 6 months...

Stations don't compete and drive diesel pricing down like they do on gas.


This is correct, but don't forget that diesel has +/- 10cts/gallon (State and Federal combined) in extra taxes compared to gasoline.


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Originally Posted by gunswizard
.20 cents a gallon less than unleaded regular here in Indy though is is slowly approaching .010 difference. Never understood how a product that was less refined than gasoline could cost more.


Supply & Demand


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west coast its all price manipulation....

got fuel up in Portland last week for $2.02 a gallon diesel was running under $2.00...

down in Southern Oregon, we have two companies that run a big percentage of the fuel stations in the Rogue Valley...

87 octane is running $2.50 a gallon, some places are running 20 to 25 cents more for 89 octane and then another 20 to 25 cents a gallon for 91/92 octane...

diesel is still sorta under 20 cents or so less a gallon...

I don't own a diesel, so Oregon's pricing at truck stops is sorta hard to follow... one price with PUC/ Cash, another price with PUC and Credit, then another price for no PUC & Cash and a fourth price for no PUC & Credit...

PUC: Public Utility Commission Sticker....
you don't pay state tax at the pump, you are billed monthly for it by the state, them keeping track of how much fuel you burn...

This state is antiquated on such things...

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Originally Posted by Just a Hunter
Originally Posted by Fireball2
It was cheaper than gas forever until diesel pickups became popular in the 90's. Then they jacked it up because they figured if a guy could pay $7000 more for his pickup he could pay more for his fuel too. It's an oil company imposed luxury tax.


A friend who works at a refinery can't explain why diesel is higher. He said it is cheaper to produce then gas. This was a few years ago.


No no no. It used to be cheaper to produce. Then the EPA demanded lower sulfur content and all new refining stuff had to be built.


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Originally Posted by Dutch
The switch to low sulfur diesel created a production bottleneck. Then a lot of China's factories started running on gen-sets because they could not get reliable electricity of the net. So for the refineries, it was easier to just export the diesel, rather than invest in the additional equipment to steam out the sulfur for the domestic market.

Then, China started building electrical plants like there was no tomorrow, the Euro market for transportation fuel went soft, and the US market for transportation fuel (semi-trucks) is down considerably.

So Chinese, European AND American demand for diesel is soft, and the proportion of gas / diesel is somewhat fixed, so the relative price of diesel is coming down.


Dutch thanks for the explaination.


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If people only knew how much extra money they spend because of EPA regulations. It's not just petroleum.


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Originally Posted by Raeford
Originally Posted by gunswizard
.20 cents a gallon less than unleaded regular here in Indy though is is slowly approaching .010 difference. Never understood how a product that was less refined than gasoline could cost more.


Supply & Demand


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Campfire Kahuna
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Here in so. Idaho, both gas and diesel prices have been inching up for weeks. Both have gone up .50 over the last month. Today I saw unleaded for 2.19 and diesel for 2.39.


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Alaska too. Been that way for a few months. Must be all that "green" energy cutting down on diesel use, causing these lowe- than-gas prices. (Sometimes I crack me up....... smile )

I bought 53 gallons of unleaded just yesterday from the bulk plant at $5.6065 a gallon, with my geezer discount (no local taxes applied, as I am a senior- one advantage of living in an Eskimo culture.....).

$297.14.

Of course, that has been the set price since the fuel barges came in last fall. I probably should have waited until September when they get here again, as I won't be using any significant amount of fuel until then. Here.


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Many years ago I read that diesel was a by-product of making gasoline, and at that time, gasoline was about $1.00/gal. The article said that the cost to produce a gal of diesel was about $.10/gal. This was before the low sulfur laws, so I'm feel pretty sure it cost more to make a gal now. Just how much more is the unknown, but if the article was true, an increase of 900%/gal seems like an awful lot, just to get the sulfur content lowered.

Oil company price gouging is all it is. Just like the '73 gas shortage... the only place that had a gas shortage was the gas pumps. The refineries were full.


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I know you guys hate the "oil company" but when the new sulfur rules were enacted, new units had to be built to make the stuff. This little piece of machinery was one of the first on-line at $18 billion construction cost and $800 million recurring cost per annum (excluding materials). Good businesses don't go bankrupt.
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