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Old 11-16-2018, 08:14 AM   #1
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Is Diesel ever going to come down ?

Here in Eastern Nebraska I've watched as the price of Gasoline has dropped as much as 35 cents in the last couple of weeks, but Diesel has not moved a penny and I've noticed a couple local stations that have raised theirs an additional 10-15 cents in the last week.
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Old 11-16-2018, 08:33 AM   #2
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With our new governor in Michigan. It will be sky high with fuel taxes. Yahoo.
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Old 11-16-2018, 08:59 AM   #3
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Here in NC where I am at Diesel came down .02 from $2.98 to $2.96 in the last two months gas continues to drop and it's $2.39 here now.
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Old 11-16-2018, 09:02 AM   #4
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Here in Windsor, Ontario the price of deisel is 23 cents more a litre than gas right now, with no sign of dropping.I carry 86 gallons of fuel.
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Old 11-16-2018, 09:10 AM   #5
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I think they use the "winter blend" as an excuse to keep it high, so don't anticipate it coming down any time soon. Where I am here, is just like Pipeman reports, .23 cents a litre higher for diesel, that's equivalent to .87 cents higher than gas per U.S. gallon.
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Old 11-16-2018, 09:18 AM   #6
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The more they refine it to clean it up, the more it costs.
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Old 11-16-2018, 09:27 AM   #7
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Short answer is "no".

When they reformulated diesel into ULSD (Ultra low sulfur diesel) back in 2006, they ahem... 'conveniently' made it so our fuel standards matched Europe's. America became a net EXPORTER of finished fuels like diesel. Europe is BIG on diesel. Unlike here, a large chunk of passenger cars run on diesel.

Before 2006, American refineries could not sell their fuel in Europe. Diesel was actually almost a waste product from the refining process. You refine a 100 barrels of crude and you are going to get x amount of gas, x amount of diesel, x amount of other things. There is just no way around it. With only OTR truck and the odd pickup running diesel, there was more diesel made than was needed. That's why diesel was always historically lower than gas. They almost needed to give it away to keep the refineries running. Out east, people used 'fuel oil' to heat their houses. That fuel oil is diesel you know... Anyway, with the people filling using diesel to heat their houses, the demand went up, and it took the prices up with it. That's a big reason diesel used to historically go up in the winter (as I called it... the winter tax)

Nowadays, with a MUCH larger market for diesel available to the refiners, the price has gone up, and the price swings we used to get have pretty much ended. Gas is usually a pretty specific formulation for each region. You cant really take St. Louis gas and transport it to California and sell it there if one of their refineries goes down. The formulation is all wrong. But with the global universality of diesel, if St. Louis gets a glut of diesel, it can be transported anywhere in the country where it's selling for a better price, or shipped over to Europe where it sells for 2 to 3 times what it sells for over here.

Might as well come to face it. Cheap diesel is a thing of the past.

Tim
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Old 11-16-2018, 10:35 AM   #8
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The latest price that I paid for my diesel was $2.93 a gallon (Nov 2018) not bad considering that I was paying $4.75 a gallon in July of 2008. I just had traded in my 6.0L gas Chevy pick-up truck for my 2008 Dodge 6.7L Cummins (Ram Mega Cab) and than the fuel prices took off for the moon.

Some of the reasons that diesel is not cheap any more are some refinery's have been closed by the EPA over the years (emission issues). The oil that is refined for Diesel Fuel/Home Heating Oil is approximately 20% of a barrel of oil that is used for this refining processing. The rest is used for automobile gas and other needs. So, the demand for diesel/heating oil will drive up cost or keep it high in the winter months.
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Old 11-16-2018, 10:51 AM   #9
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Two winters ago I was paying 2.34/gal. Yesterday I filled for 3.28/gal.
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Old 11-16-2018, 11:07 AM   #10
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Dieswl here is $2.98 and been steady for a month or so however gas has steadily drop and now $2.25 both prices at Race track. 73 cents more per gal and boy will that add up on your fills. No thank you diesel. Also go down the road 3 blocks to BJs by regular for $2:15. Sure glade my new truck is gas.. Later RJD
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