The gasoline market pretty much baffles me. I used to think their was a straight correlation between the price of crude oil and a gallon of gasoline or diesel at the retail level. Price was up to $150 a barrel and there was not much difference in price from $120 oil. Now, we're down to the $85-$90 a barrel price range. Prices are coming down, but I have totally lost touch with what a correct price should be. It seems more of what the market will bear sometimes which is why the price at $150 was not directly passed on.
Has there been a new law passed that forces the use of low sulfur diesel fuel? When did this happen? As mentioned, diesel was always less than gasoline per gallon. Now it is more.
Clearly a lower price for diesel fuel would eventually reduce prices at the consumer level. It took a while for the price increases to hit, but they have hit big time these days. All you have to do is walk into most grocery stores if you remember prices of only a year ago.
One of the things I expect to happen for non-business use of fuel is some sort of tax credit based on income or use (or both). They have credits for everything else, so why not gasoline?
