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Old 11-18-2012, 08:22 AM   #1
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Diesel fuel prices

Can anyone tell me... a reason why diesel fuel should be .40-.50 cents per gallon more in price vs.reg un-leaded gasoline..when i bought my F250 last May ..prices were.. on average here in Michigan .05 cents apart ??
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Old 11-18-2012, 08:56 AM   #2
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I have asked the same question, This is what I learned right or wrong. They say the price will stay up due to the high increase in the demand in Europe. Most or almost all cars in Europe are diesel now. They get extremely higher mileage then gas. Diesel use to be a lot cheaper then gas here and around the world but with the great increase in demand now you know what these Companies will do. Do I agree with this statement, partly !!!!!!
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Old 11-18-2012, 09:03 AM   #3
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I hope one day we can get back to the days of Diesel always being cheaper than gas by a $1 or so but probably a pipe dream!



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Old 11-18-2012, 09:09 AM   #4
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Diesel fuel is an industrial fuel, which is often ordered far in advance, industries cannot cut back on usage as quickly, which kept diesel prices higher. In addition, growing industrial countries like China and India are putting increasing demand on diesel fuel, and in Europe a large percentage of personal vehicles also run on diesel, further straining supplies. So, while diesel prices have often been significantly lower than gasoline prices, shifts in supply and demand can actually cause either type of fuel to be priced higher than the other.
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Old 11-18-2012, 09:40 AM   #5
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I think it is because the general public(who raises a little more of their voice) uses gas. While more comercial uses are using diesel- thus the thought that 'they can afford it'. Prices here around me in central OK have dipped to $3.64 for road diesel and $3.36 for offroad. But gas is right around $2.95-$3.15
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Old 11-18-2012, 09:44 AM   #6
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I believe the use of ultra low sulfur fuel also makes our diesel fuel more expensive as well. Also, the fuel tax on diesel is six cents more per gallon, as far as I know.
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Old 11-18-2012, 09:46 AM   #7
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The biggest problem is the fact that we do not have refinery capacity, there has not been a refinery built for decades because of all the environmental issues and the not in my back yard syndrome, here in Ontario diesel is cheaper than gas but gas is $4.67 for a US gallon right now and diesel is $4.44 US gallon.
It could just be that the oil companies like the banks have found that they can charge whatever they want and no one will dare to stop them.
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Old 11-18-2012, 09:53 AM   #8
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Anybody notice how fuel prices shot up over 30 cents a gallon the day after the election. And they keep telling up how big brother doesn't control prices. What a crock of ____. Actually what I'm suprised about is no stories of people needing locking gas caps. Back in the 70's people magically lost a tank of gas overnite. Things aren't that bad, yet.

Story I hear about diesel being higher than gasoline is......it's a commercial fuel so it has higher taxes.
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Old 11-18-2012, 09:57 AM   #9
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All the cars I have had over the last 20 years have had locking fuel doors that can only be opened from the inside .
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Old 11-18-2012, 10:52 AM   #10
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Quote:
Originally Posted by Gizmo0706
I believe the use of ultra low sulfur fuel also makes our diesel fuel more expensive as well. Also, the fuel tax on diesel is six cents more per gallon, as far as I know.
The diesel fuel having to be low sulfer is part of it because before diesel did not need to be refined and now it does it cost money to make it low sulfer and so some of the price being higher is for that reason.
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Old 11-18-2012, 11:33 AM   #11
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here is a link to state by state taxes on fuel. doesnt include federal or local taxes it doesnt look like, just state.

Gasoline tax information - Illinois Gas Prices
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Old 11-18-2012, 01:01 PM   #12
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Also they are now making the winter blend diesel fuel which has more additives and usually cost more this time of year. Around here diesel went up from $3.85 yesterday to $4.19 today glad I filled up yesterday!
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Old 11-18-2012, 01:24 PM   #13
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diesel in my area in illinois runs from 3.75 to3.99 a gallon gas currently is 3.29 . across the river in mo, i can get diesel nearly .25 cents cheaper for driving 3 more miles. gas comes in at a similar savings.
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Old 11-18-2012, 01:51 PM   #14
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With the economy improving, there are more and more semi trucks on the road creating a greater demand for diesel.

During the GREAT Recession, as demand for goods slowed down, the price of diesel fell below gasoline because many trucks were being parked because no demand to haul freight. As demand for goods has improved, this begats more trucks.

If we could get the railroads to be more responsive with delivery of goods, we could reduce the number of trucks on the highways causing a reduction in the price of diesel.
And, o yes, railroad engines run on heavier bunker fuel.
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Old 11-18-2012, 02:04 PM   #15
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Quote:
Originally Posted by ohiocamper View Post
Also they are now making the winter blend diesel fuel which has more additives and usually cost more this time of year. Around here diesel went up from $3.85 yesterday to $4.19 today glad I filled up yesterday!
IMHO this is the sole reason for the higher prices now at least in the north... in the south they're just screwing you
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Old 11-18-2012, 02:18 PM   #16
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Originally Posted by 2Macs View Post
With the economy improving, there are more and more semi trucks on the road creating a greater demand for diesel.

During the GREAT Recession, as demand for goods slowed down, the price of diesel fell below gasoline because many trucks were being parked because no demand to haul freight. As demand for goods has improved, this begats more trucks.

If we could get the railroads to be more responsive with delivery of goods, we could reduce the number of trucks on the highways causing a reduction in the price of diesel.
And, o yes, railroad engines run on heavier bunker fuel.
Trains run through MN suburbs were I am at with a HUGE increase in frequency vs. just a couple of years ago. Many and more intermodel trucks parked nose to nose on flat bed train cars. I also see train companies advertising on TV all the time. Long distance OTR trucking is inefficient as rail services can do it less expensivly.

The train thing is just starting to boom. Magically, light rail in Minnesota is taking off at the same time. A few miles from my work is a company called LORAM Maintenance of Way - Home These guys are growing and hiring over the last couple of years too.

Winter diesel blend hit MN about a month ago. 15 cent jump in price when that hit the pumps. I use GasBuddy.com - Find Low Gas Prices in the USA and Canada on my phone to find cheapest gas and diesel when it's time to fill up.
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Old 11-18-2012, 02:44 PM   #17
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As of 2012... Locomotive, marine and non-road diesel fuel engines (such as farm and construction equipment) will also need to use ULSD.
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Old 11-18-2012, 05:53 PM   #18
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Does off road diesel have a higher sulfer content ??
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Old 11-18-2012, 06:03 PM   #19
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The reason diesel is higher is tight supply due to the fact that we now export more diesel fuel to Europe than we import.

U.S. Was Net Oil-Product Exporter for First Time Since 1949 - Bloomberg

Since the change to ULSD, our fuel is identical to that used in the EU. We send over 439,000 barrels of diesel a day. Some how, this fact has escaped the general public

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Old 11-18-2012, 06:21 PM   #20
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Quote:
Originally Posted by dretired View Post
Does off road diesel have a higher sulfer content ??
As of this year it's all ULSD

Ultra-Low Sulfur Diesel (ULSD) Page
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