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Old 11-26-2011, 09:47 PM
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Question Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Several weeks ago I saw a big jump in diesel prices and a drop in gasoline prices. Not sure if its just my area of the country (Northwest Indiana). Diesel here is running about $4.05 per gallon, regular unleaded has dropped down to about $3.15.

I know the US is an EXPORTER of diesel fuel but this is pretty crazy.
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Old 11-26-2011, 09:55 PM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Quote:
Originally Posted by Melensdad View Post
Several weeks ago I saw a big jump in diesel prices and a drop in gasoline prices. Not sure if its just my area of the country (Northwest Indiana). Diesel here is running about $4.05 per gallon, regular unleaded has dropped down to about $3.15.

I know the US is an EXPORTER of diesel fuel but this is pretty crazy.

It's because they can.
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Old 11-26-2011, 10:23 PM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Foggy, I don't doubt that, but up until very recently the price of diesel has been only about 20 to 35 cents more than regular gas. Why all of a sudden did the difference jump up to 80/90 cents per gallon?
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Old 11-26-2011, 10:26 PM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

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Originally Posted by Melensdad View Post
Several weeks ago I saw a big jump in diesel prices and a drop in gasoline prices. Not sure if its just my area of the country (Northwest Indiana). Diesel here is running about $4.05 per gallon, regular unleaded has dropped down to about $3.15.

I know the US is an EXPORTER of diesel fuel but this is pretty crazy.
It's the "new Diesel" The refiners must remove so much more of the sulfur because of a feederal mandate that went into effect 2007. And you all thought only the Left made things more expensive to be green.

BTW Biodiesel would have solved this issure without the extra refining.
http://www.purdue.edu/uns/x/2009a/09...Biodiesel.html

But we got ETHANOL instead.

Is this a great country or what?
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Old 11-26-2011, 10:28 PM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Franc I don't think so. We've have low sulfur diesel for several years.
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Old 11-26-2011, 10:35 PM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

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Franc I don't think so. We've have low sulfur diesel for several years.
I din't say different. Pay attention.

We have had low sulfur for year.....2007 to 2011 yeah that would qualify.

It costs more to do it and if all the feed stocks are heavier in sulfur then
the fuel will be higher.

We are currently experiencing a shortage of diesel nationwide. But particularly severe in the mid west. Kansas, Nebraska, Oklahoma, you know the states that would have been served by the new, but put on hold pipeline?

This has caused a shortage of fuel because the refiners simply cannot keep up with current demands.

Some major truck stops have literaly shut down over this.
http://journalstar.com/business/loca...2ef03f5b4.html
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Old 11-27-2011, 12:32 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

I have seen diesel at 70 cents to a dollar ten higher than gas around here.
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Old 11-27-2011, 09:11 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Diesel generaly runs about even with Premium Gasoline around here. But it is up from that lately.
In 2003 Diesel was at $1.00 to $139 a gallon. Keep in mind everything you buy in the store is delivered by diesel somewhere along the way form producer to retail.
Imaginge being an independent Over the Road trucker who's main cost component is now four times what it was just a few years ago.

But don't fret folks. White House says there is no inflation going on.
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Old 11-27-2011, 09:16 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

The price difference is not that great here. At the moment.

I would suggest that you use www.gasbuddy.com and find the lowest price in your area and patronize them. It also helps if you report low and high prices in your locale.

That is capitalism and it works.
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Old 11-27-2011, 09:22 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

I didn't buy yesterday, but regular unleaded was $3.02 at truck stop and (cash) diesel was $4.15! WTF?!
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Old 11-27-2011, 09:47 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Probably wrong about this,but doesn't the price of diesel usually take a big jump up at the start of the heating season every year ?
I seem to remember it being that way........ Combination of supply and demand and because they can ?
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Old 11-27-2011, 09:49 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Diesel usually goes up when heating oil season kicks in. Higher demand.
I gather that demand is escalating around the world and more diesel is being exported from the US. I looked around on the internet and diesel prices are similar to ours in the countries we are exporting to.
Kind of sad that there are bad spot shortages in states like Nebraska where lots of truckers buy fuel because of lower state taxes.

ETA: Nixon beat me to it :)
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Old 11-27-2011, 10:00 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Well I have about 500 gallons in the tank now, looking to add another 500 gallons but at these prices I'm not going to rush out and fill up now.
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Old 11-27-2011, 10:18 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Also some believe the industry is trying to justifie the pipeline from the canadian oil sands. I predict a spike in prices over the delay of this important project. Untill recently there were much lower prices in the area the pipeline was to be built, because of excess supplies. Now it going to go the other way. ULSD is the road version, and it is about $1 per gallon higher than off road fuel. It is JUNK and will destroy the injector pumps on the older engines over time. It has very little lubrisity or lubrication value in it. If we are the only ones using USLD them we are fools, hamstinging our transpotation infrustructure and driving up prices and the cost of diong business. The EPA is quite effectively regulating the diesel engine out of existance. 2% soy diesel added gets the lub back in USLD.

Biodiesel plants in my area were closed two years ago. Now they are operational and nearing capacity.. I'll have to enquire with the CEO of R.E.G. why that is....

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Old 11-27-2011, 10:24 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Every winter diesel prices spike.

Diesel = Home heating oil.

Winter = decreased supply of home heating oil = increased price (on top of the gouging for a better, more efficient fuel).



And to all the ethanolics out there that frequent this board, why aren't we making biodiesel from all the bio-waste material that doesn't go into the food stream? It's a better more ecologically friendly fuel that is not a net energy loss made from a readily available waste product.

Oh, yeah. Nevermind.
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Old 11-27-2011, 10:24 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Quote:
Originally Posted by Melensdad View Post
Well I have about 500 gallons in the tank now, looking to add another 500 gallons but at these prices I'm not going to rush out and fill up now.
That's about what I have, but if I do much work with my big track loader (really big skid steer on tracks), it will drain it's 40 gallon tank by lunch break. 500 gallons doesn't go far that way; especially when all my diesel is non-dyed fuel and I burn it in my pickup too. That brings up another issue; how in the hell is it that I can get TAXED on road diesel in my area for a few cents LESS than #2 dyed off road?! It seems that if you want less than 1500 gallons, they don't want to mess with you. My little 110 gallon tank in the back of my pickup has been great. I see a really good price on diesel, I fill my truck and that tank too. When I get home I just pump that tank empty into my large tank.

When I bought my 550 gallon tank, it cost me $800 even for the brand new tank (purchased, not leased) filled with fuel. Things are a bit different now!
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Old 11-27-2011, 10:34 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Quote:
Originally Posted by Dargo View Post
That's about what I have, but if I do much work with my big track loader (really big skid steer on tracks), it will drain it's 40 gallon tank by lunch break. 500 gallons doesn't go far that way; especially when all my diesel if non-dyed fuel and I burn it in my pickup too. That brings up another issue; how in the hell is it that I can get TAXED on road diesel in my area for a few cents LESS than #2 dyed off road?! It seems that if you want less than 1500 gallons, they don't want to mess with you. My little 110 gallon tank in the back of my pickup has been great. I see a really good price on diesel, I fill my truck and that tank too. When I get home I just pump that tank empty into my large tank.

When I bought my 550 gallon tank, it cost me $800 even for the brand new tank (purchased, not leased) filled with fuel. Things are a bit different now!
I'm sure you already know this, but don't get caught running offroad diesel in the P/U. The fines are awfully steep.
Mike
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Old 11-27-2011, 10:50 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

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Originally Posted by Dargo View Post
That's about what I have, but if I do much work with my big track loader (really big skid steer on tracks), it will drain it's 40 gallon tank by lunch break. . .
I don't have the big equipment to eat up the fuel. Sipping my fuel are 2 compact tractors and a 40mpg diesel car. I'm looking at getting a second 40mpg car next spring. If I fill up all 1000 gallons I will be able to drive 2 cars for about 15 months before I have to refill the tanks.

I was hoping for winter-blend fuel, but not at these prices. I'll just have to fill up when prices drop and condition the new fuel for year round use.
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Old 11-27-2011, 10:51 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

Av8er3400

Yup,

Seasonality in the heavy oil market is always there, to some degree. I like to wait till after the first of the new year to buy the needs for the comming year. Usually a big sell of occures in Jan.. I need about 7,500 gals of off road, BTW.

Animal fats are big in Bio diesel, and from what I have heard were always a planed part of the mix. Hope this is a good surprise to you, we're already there.

Dargo, $5K per vehical if your caught...in my state anyway...

Regards, Kirk
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Old 11-27-2011, 11:04 AM
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Default Re: Why is Diesel 80 to 90-cents/Gal. higher than Unleaded Gas?

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Originally Posted by 300 H and H View Post
Animal fats are big in Bio diesel, and from what I have heard were always a planed part of the mix. Hope this is a good surprise to you, we're already there.
I'd love to find Bio-Diesel in my area, but can't find it at any of the local pumps. It may be in the blend, but its not indicated on the pump.
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