What is the deal with DIESEL?

[TheBullLady]

Can anyone tell me WHY diesel fuel is now higher priced than Premium?? Is it just me, or are we being GOUGED?

The lowest price I could find this morning was $2.09 a gallon. I'm sorry, but that is highway robbery!!!

 

[jgn]

Diesel here has also gone a lot higher since gas prices went up. It used to be diesel was always a lot lower than gas but now it's the same price or just a few cents higher. I always thought diesel was just a by-product from the making of gasoline, if so it shouldn't be half the price of gas. I think someone just finally realized that hey these diesel pickups and such are getting so much better fuel mileage than their gas counterparts and so many people are buying them now that they can get a lot richer if they raise the price on it. Anyway you look at it gas or diesel it's a ripoff because they know you got to have it and will pay whatever for it no matter how much it pee's you off.

 

[Arnold Ziffle]

Don't know the WHY of it, perhaps Campground can shed some light. At this late date in the year possibly the "stuff" that is normally used to make diesel is now being more heavily devoted to making fuel oil so that our friends up north don't freeze a little later on. But I guess prices are a bit cheaper in Houston and nearby towns --- bought some 87 octane yesterday for $1.799 and diesel for $2.01 but that was the blind hog finding the acorn sort of deal; most stations I've passed recently have 87 octane priced between $1.83 and $1.93 but it seems that "premium" was still definitely higher than diesel.

 

[Campground Cattle]

Don't know the WHY of it, perhaps Campground can shed some light. At this late date in the year possibly the "stuff" that is normally used to make diesel is now being more heavily devoted to making fuel oil so that our friends up north don't freeze a little later on. But I guess prices are a bit cheaper in Houston and nearby towns --- bought some 87 octane yesterday for $1.799 and diesel for $2.01 but that was the blind hog finding the acorn sort of deal; most stations I've passed recently have 87 octane priced between $1.83 and $1.93 but it seems that "premium" was still definitely higher than diesel.

Welcome to the world of clean fuels and its going to get worse and no competiton. Thank You Bill Clinton for allowing the forgien Companies to take over the American Industry.
Lots of diesel is being shipped to Europe also. The EPA is pushing the industry to make diesel with a sulphur spec of 50 ppm by 2006 current spec is 450 ppm this is so your new diesel will have to have a catlytic converter.
Also 56 dollar a barrel crude isn't helping either, refiners need 7 cents a gallon to cover operating cost 40 cents tax plus transportation, and a 1.33 a gallon cost X 42 gallons = barrel. You do the math.
A lot of Diesel is converted into gasoline to meet contractual obligations, I am not going to the techincal catlytic reactions to convert diesel to gasoline boiling range material.

As far as being gouged your not
1.33 gallon cost crude
.40 cents Tax
.07 cents refining
.15 gallon transportation
.10 cents retailer
Tell all the tree huggers now why we can't drill off Ca. the East Coast North slope.
We have not built a new efficent refinery in this country since 1974, if you could get the permits to build one.
AZ hope this helps.

You can't have your cake and eat to.

 

[TheBullLady]

Camp...

I always thought diesel was the "throw away" fuel, and costs much less to get to the pump. Has this changed?

I can remember (and I'm not THAT old) when diesel was .40 a gallon less than regular.

 

[Running Arrow Bill]

I'm probably wrong on this...lol. But, my guess is that diesel purchased in or near a metropolitan area would have a "premium" price since all those Mercedes, and useless "Sport" pickups on diesel have no rural or agricultural use whatsoever.

So...the "luxury" diesel vehicle market in a metropolitan area would probably pay more for their fuel.

On other hand, I would guess diesel in rural America would cost a little less, since the farmers and ranchers need it to earn a living...not show off their "sport" vehicle...

:roll:

 

[Campground Cattle]

Camp...

I always thought diesel was the "throw away" fuel, and costs much less to get to the pump. Has this changed?

I can remember (and I'm not THAT old) when diesel was .40 a gallon less than regular.

Not hardly on the throw away fuel with all the government regs. Diesel didn't have to be highly refined that has changed with the Sulphur specs.
Also Hydro Cracking units convert diesel to gasoline the process is volume expansion process which is more profitable to refiners to convert it to gasoline.
Example the unit charges 60,000 Barrels a day of diesel your get roughly 65,000 barrels of gasoline product.
As a business the diesel is more valuable to make the extra barrels to sell as gasoline.

 

[cattle_gal]

Campground,

So right. We have so much natural untapped resources under this land we could support our selves, especially in our state. And Alaska - wow. I just bet those tree and bunny huggers are complaining too. Slick Willy sold everything out from under America. I would really like to start to see fuels made from Ethanol and any plant derived source. Get Americas land back in to production and money back to the farmers. Am I correct in hearing that Brazil is independent from outside fuel sources? Their fuel is made from their own crops.

Did I also hear that today(Monday) the price of crude was somewhere at $52 to $58 a barrel? Didn't paymuch attention in the store when it was said on the radio- Paul Harvey I think.


Bill,

Nope rural America pays the same price. And sometimes more when it is bulked in from the local gasman/co-op. We pay 6 cents more per gallon for them coming out to fill us up. I think we are fortunate to have tractors also that are propane. We use diesel only on our heavy equipment. And gas on the autos. And if the price goes up anymore we'll be using the good ol shovel :shock: Gas prices in town are about 1.97 to 1.99.

 

[dun]

Campground,

So right. We have so much natural untapped resources under this land we could support our selves, especially in our state. And Alaska - wow. I just bet those tree and bunny huggers are complaining too. Slick Willy sold everything out from under America. I would really like to start to see fuels made from Ethanol and any plant derived source. Get Americas land back in to production and money back to the farmers. Am I correct in hearing that Brazil is independent from outside fuel sources? Their fuel is made from their own crops.

Did I also hear that today(Monday) the price of crude was somewhere at $52 to $58 a barrel? Didn't paymuch attention in the store when it was said on the radio- Paul Harvey I think.


Bill,

Nope rural America pays the same price. And sometimes more when it is bulked in from the local gasman/co-op. We pay 6 cents more per gallon for them coming out to fill us up. I think we are fortunate to have tractors also that are propane. We use diesel only on our heavy equipment. And gas on the autos. And if the price goes up anymore we'll be using the good ol shovel :shock: Gas prices in town are about 1.97 to 1.99.

Aroound here we have three grades of gas. Regular, premium and super premium. Many of the stations charge the same for regular and premium. The premium part comes from 10% Ethonal.

dun

 

[BuckemRanch]

I live in a small valley. For as long as I can remember diesel has been higher, but when I go to other areas it is lower (not lately). We are right around $2.35 a gallon. I could go for a manure powered truck.

 

[Campground Cattle]

A simple explanation on the process

http://science.howstuffworks.com/oil-refining5.htm

 

[sidney411]

I have had to park my big diesel truck except when I have to have it and have been driving my little gas truck around. It cost an arm and a leg to fill up my diesel truck! It is totally rediculious! Farm diesel is so much too! Right now our farm diesel budget has doubled last years budget and we haven't even planted the rye grass yet, this is too much!

 

[D.R. Cattle]

It's taking $40 to fill up one tank on my truck. $2.11/gallon in my neck of the woods, and there isn't a whole heck of a lot of heating fuel being utilized here!

 

[Craig-TX]

It would not surprise me to see $100 oil before it's all over.

Craig-TX

 

[D.R. Cattle]

It would not surprise me to see $100 oil before it's all over.

Craig-TX

Better keep the horses after all.

 

[Cattle Rack Rancher]

It would not surprise me to see $100 oil before it's all over.

Craig-TX

I actually heard that they expect it to top out around $65-$70 and then settle back around $50 per barrel.

 

[Campground Cattle]

http://www.rense.com/general26/firstdirectshipment.htm

 

[frenchie]

Arnold Ziffle.........most stations I've passed recently have 87 octane priced between $1.83 and $1.93

Man I would love to pay that little for fuel. My math for reg gas at the pump is 3.11 U.S a gallon . Diesel runs 2.70 U.S a gallon at the pump.

yet Purple(farm) diesel runs 1.89 U.S a gallon if I pick it up at cardlock.

 

[Ryder]

Friends from Germany were here earlier in the summer. They talk about how cheap gas is here. I don't like paying these prices (I thought 30 cents per gallon was high), yet I am just glad its available and we can get it.

 

[TLCfromARK]

Here's another link that shows the basics of how a refinery works and the crude is split up into different products.
http://cbuops.bpweb.bp.com/refinery_car ... finery.htm

;-)