Fuel costs - why does diesel cost more than gas?

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RVer krw

the cheif reasion i see as to why diesel is higher than gasoline [worldwide demand being greater for diesel] doesn't seem likely given that diesel commodities quotes are usually within a few cent of gasoline...+/- 10 cents but retail diesel is generally 30-40 cents higher. i beleive the real reason is because there is no public outcry by consumers [trucking co] because they can pass the higher diesel rates on to their customers in the form of a fuel surcharge.most of their customers are okay with these charges, because they know diesel prices are higher. and petro co are tickeled to death.it doesn't work with gasoline..most people can't pass the charges on to a third party and they can choose to drive less if prices get to high. or they may get angery enough to call a congressman.

Rick

I think we have a refinery problem in the U.S. This of course is caused by the main problem; the environmentalist lobby and weak politicians, but that's for another comment board. Apparently, the supply/demand for diesel and gasoline is kept somewhat balanced with our very limited refinery capacity. When talking such huge volumes, this can be a difficult task. So when supplies of diesel and heating oil hit highs, they cut production and switch to gasoline production and vice versa. Meanwhile, since we're generally short on refining capacity, tankers coming from Alaska, Canada and Mexico (where the majority of our foreign oil comes from) that can't unload their crude oil in a timely manner are diverted to other markets. So, if you want to solve the high cost of fuel in America, build more refineries, drill for more domestic oil in ANWR and build nuclear plants to reduce the demand for fuel oil. Again, environmentalists and weak politicians are the primary problem.

Gary

Question: How many Mayors, Senators, Congresspersons,Governors and corporate executives are trust worthy and have the interests of the sovereign power in mind? Or is that greed and who do they work for again? Is there free interprize at work in the oil industry and when was the last time you heard of a price war or the word competition? Is the price of the amount bio fuel that it takes to go the same distance as a gallon of gas the same by accident. Do you think that allowing businesses leaving the country including oil refineries have an effected our economy? Do you think that our government taxing oil and companies has effected fuel prices? Are those taxes as well as the cost of an expensive valve used in the transport and refining ultimately paid by the consumer? Someone made the flip remark that if you don't like it refine your own. We should do just that. We the people should start a refinery and compete. Those that invest dollars are paid only in a reduced price at the pump.That way there is a built in control in that after a certain amount there would not be an increase in benefit. Would those who are the problem reveal themselves as opposition. Even if we screw it up I bet we can do it for less. And while we are at it , there are who knows how many citizens working in there garages on vehicles that run on Hydrogen from electrolysis of water. Imagine what engineers could do and why aren't they? No money in it if the fuel is water? Does greed drive the direction of our economy.

vince

Hey Nick,I am sure u are from eastern Canada and by the way, western Canada and the US have the same problem with u as u do with us.Explain to me why the oil companies together coal industry lobbied so hard with the commodities exchange to get diesel and coal taken off the exchange?Seems to anybody with a high school education or better(i dont know if Quebec goes that high,not sure of Ontario either or France for that matter)seems to me that those in that industry made sure a global free fall wouldnt happen in the diesel and coal(kerosene) markets and withdrawals from commodities traded status were supported by the government here in the US ,which just happened to be oil lowlifes.By the way Nick Exxon does buy there fuel,u are right about something, but pays basket prices for it, which are 3 to 6 dollars a barrel lower then what the comparative futures contracts trade at;because remember they pull up with a ship to a bigger pump then we do, with a bigger credit card and can take physical delivery of a commidity,hence get cash price advantages and dont pass them on to us.WASNT AT&T BROKEN UP FOR SOMETHING SIMILAR IN THE TELEPHONE INDUTRY TEARS AGO?WHY NOT THEM? Get your facts straight Mr.Nick-there was pretty much an organized rip off by oil companies,called a monopoly or conspiracy supported pretty much by the US government and that great texan MR.Bush,whom drove every company he ever worked for into the ground and the US too and I ate his bs and voted for him ..shoot me dead.ON the buy up of oil futures and physical contracts starting in 2003, commodities houses,hedge fund managers and swaps insurers,etc, in nyc and chicago all took advantage of depressed fuel commodities markets and made everyone all over the world feel the pinch quickly and all those oil men politicians in the good ole US new about it.The only thing Enron did wrong was made,to stay with the good ole south western motiefe,"pull the trigger to quick" ENRON bought huge positions in long oil calls 6 to 8 months to early probably without hedge against there loses when oil,at that time ,took a major turn to the down side and Enron was naked in there position,meaning Mr.Nick that there losses were snow balling and were halted by the courts.During there bankruptcy a year later,there positions were making money guys.We need diesel and coal put back on the big board and traded daily ;not controlled by producers wearing 6 shooters, cowboy hats-boots and spurs that jiggle-jangle;not just traded only in etfs-exchange traded funds that tend to mirror moves in prices not on a real time scale and not as violatile as would be a futures or a physical price on the NYMEX or other commodities board.The prices of diesel and kerosene are crazy.merry xmas

Mike

I don't know why diesel costs more but I wonder why do the posts that defend oil companies tend to be long, rambling, convoluted and boring? Curious.

Jason

I understand the explanation but I have to wonder. Why in Ontario is diesel again below the cost of gas by about .10c and on Vancouver Island where I live it is .16c above. I use to live in London Ontario where diesel is currently .65c but on Vancouver Island its holding at $1.11 steady. Why?

Bryan

Nick... I hope you feel better now that you have vented ? Yea, we are just a bunch of spoiled Americans that just don't understand the economics behind the oil companies. Just answer me one little question. Why am I paying more for diesel than the highest price gasoilne when in the past I paid less than regular gas? I realize taxes on diesel are higher, but not by that ratio. And don't lay that "it costs that much more to take the sulpher out". We will pay what ever we have to pay because that is what we are charged at the pump. I just can't get it in my head why, when you refine crude and diesel is one of the first products out, why I must pay more for my diesel than when it costs less to refine??

Nick

For the morons who have a problem with Exxon's profits. First off, they made $40 billion FOR THE YEAR, NOT the quarter. Get your facts straight. Second off, they made a paltry 10% profit on their revenues, big deal. Its not their fault they have $400 billion in revenues. 3rd off, they made $30 billion from FOREIGN markets, so get over yourselves Americans. You cant afford to fill your truck because Exxon has to pay for that oil too, and the government taxes YOU about 50 cents a gallon in taxes. Exxon also paid $30 billion in income taxes last year alone, let alone payroll and other taxes. Americans need to get an education, and get over the fact we have "oilmen" in office. They have nothing to do with Exxon's profits. Bush has nothing to do with BP's profits either. Grow up.

Just Thinking

So if I get what your saying, the electric producer should charge as much as he can and the same with any other provider of goods or services the public consumes. Of course the same applies to water etc etc. Therefore in the intrest of the common good we should deregulate every thing. In fact if roads were to built and owned by private industry we would all be better off. I guess that is why airlines are in such good shape now and of course tickets have gone down since deregulation.

I care

I can't believe the number of folks that think there is something wrong with a free market. If you don't like the cost of the fuel you buy, go drill your own well, start your own business producing it and see if you sell it for anything less than what the market bears now. I'm tired of hearing aobut "Greed." No one is making you buy that oil!!! I don't like the prices either. But, I sure understand supply and demand. In case you missed the point, oil companies are not a charity, they have an obligation to their stock holders to make as much money as they can-- and every other business does the same thing!!!! Want some of that BIG OIL profit? Go buy some of their stock! Otherwise, don't complain when they are just doing what any other business would do-- MAKE AS MUCH MONEY AS THEY CAN!!! Believe it or not, that is what has made this country the most properous country in the history of the world. No other country has grown and lead the world in EVERYWAY (and we are so young-- 200+ years!). Thank God were born here.

SIX SHOOTER

If the price of home heating fuel is one reason why did Sunoco send 680,000 gal. of heating oil to England when it is so desperately needed here. We always continue to punish our own for the dollar. Now I read Exon reported over 14 billion dollar profits for the 3rd quarter, while i can barely drive my truck for fuel pricing.

Eileen

This is why I ride my Bike instead of driving my car or truck! People need to take control of their lives..government will not do it...everyone needs to be in check with their lives! Stop complaining, ride a bike, walk or take public transportation........will save you lots of money!

Paul K

In India and China they're building more cars every year and 35% of these have diesel engines and it's expected to top 50% by 2010. In Europe more than 50% of cars have diesel engines. World demand for diesel is increasing every year. Diesel engines are generally more fuel-efficient and produce less greenhouse gases. All RVs should be clean diesel. Clean diesel improves diesel benefits even more.

Dragon

Interestingly enough, Ford is making a diesel car that gets 65 miles/gallon. But it won't be sold here, because nobody wants to buy something running on diesel. People have a good memory about the days gone by, how diesel fumes smelled, but they selectively forget what gasoline fumes used to smell like. Also, they don't realize that a diesel car would last longer than a gas car. In the not-too-distant future, we will hopefully have plenty of bio-diesel. And, neither ethanol nor diesel will be made from corn.

johnevans3

I saw an interview on Fox or CNN where an oil exec was asked why diesel was so much higher now than regular gas. After some evasive excuses he was pinned down and explained "We charge higher prices for diesel because we can." I think that pretty well nailed it.

gkmdb

Everything goes up in price. Isn't that inflation? However, the increase in the price of fuel has far exceeded the rate of inflation while oil companies report record profits in the billions. I understand it costs less to produce a gallon of diesel than a gallon of gasoline.

The simple fact is diesel should cost half of what regular gas costs at the pump, been that way for a long time, the reality and simple reasons for the increase are the road tax, the wars in the middle east and, the biggest one, greed. Kill the war, kill the road tax, kill greed and you'll be back to the lower price of diesel. It might not ever go back to half the price of regular unleaded, but at least a dollar or more cheaper.

Connie

I think the real reason that diesel is cheaper than gas in Europe is because taxes are much higher on gas because it's environmentally inferior to diesel. The same will happen here eventually. Meanwhile us motorhome owners have to suffer.

Bob Harper

There's no reason for diesel costing more. Just the pricing structure of the oil companies and the state taxes.

Dieselman

I was in the military and got stationed in the republic of Panama between 1983 and 1988. I brought with me a diesel 1980 Chevy station wagon. I had to buy the diesel outside the base because the base did not have diesel. I was paying $1.03 per gallon for diesel and the regular gasoline was about $3.50. This is the ration that we should be seeing in this country. The gas prices were regulated by the governemnt there. I have a friend that came from Cuba and he tells me that there the ration of diesel to gas is like a 4 to 1 ratio. In this country we have to pay more for diesel because the price is controlled by a greedy capitalistic system.

Turner

Just because demand is high. That is bull. Does it cost more to make because demand is high ? NO! It is called greed. They know you want it and they charge you more to get it because they now you will pay it. I think I will started raising beef and paying over four dollars a gallon for diesel and 800 dollars a ton for fertilizer but you can bet you will pay eight dollars for a pound of beef. Milk should be good for eight dollars a gallon as well.What do you need worst food or diesel? Farmers lived very well before deisel was invented. You can bet they will survive again without deisel. But I bet you can't survive without food.I'll trade you a ear of corn for a gallon of fuel take it or leave it. By the way fuel does taste that great! As for corn it taste great and makes good fuel. Your forefathers had three uses for corn. Food, fuel and toilet paper! Rough but effective! It's hard to raise food in the sand get my point.

Tawnya in Texas

What is wrong with this guy. Doesn't he do his research. Fuel prices are rising in spite of the low demand. People have reduced their dependency on fuel. I am not talking about the bio diesel. I am talking about the number of trucking companies that have reduced the need by going out of business because they can't even afford to haul loads and make a profit and pay for the upkeep on their trucks, the farmer that doesn't have the money to keep his tractors running and is losing his farm due to rising gas prices. There are also the lower, middle, and upper class workers that have bought a diesel vehicle thinking they were going to save in gas mileage, and pricing, only to have diesel prices pass gas prices and make it impossible for them to keep a job because they couldn't afford to drive back and forth to work. Even if they decided to buy a gasoline vehicle, the price is too high for some to get back and forth to work. Fuel is the only product in the world that is increasing it's price while the demand has decreased.

Roger

Just a comment about Ignorance is not Bliss's remarks. He talks about the costs of running an oil company and research etc. But the profits are AFTER all costs and after all research and annualized capital costs. ALL costs. Economics 101.

Ignorance is not bliss

OK folks, you REALLY need to stop making comments about the oil business when you have NO idea of what you speak. You whiners continually blame the "evil" oil companies, and the blame doesn't solely rest with them. They make about a 10% profit. You're judgement is clouded by seeing "earnings," which are in the billions. BUT, the expenses are also in the billions. If you were in business, you'd really like to make more than 10%, I'd think. It costs INORDINATE amounts of capital to build or maintain an industrial facility. You want that refinery that's in your neighborhood to blow up like a nuke? I think not. It takes a lot of people and a lot of very expensive equipment to ensure that it runs safely and doesn't kill and maim people inside and around the plant. That high cost to do business safely is whether you're pulling it out of the ground, or you're turning it from sludge into diesel or gasoline at a refinery. Do you have any clue that one control valve can cost $50k to $100k and some are way more expensive. One stinking valve (like your kitchen faucet, only bigger)!!! I'm tired of listening to the claptrap. If you want someone to blame, you need only look at yourselves. Conspicuous and irresponsible consumption reduces supply and raises prices. You'll save 30-40% of fuel consuption by slowing down to 55 or 60mph, but you don't want to be inconvenienced. Everyone gets so fired up about being "green" because it's the responsible thing to do (oh yeah, and it's fashionable), so try being "green" in your gaso-diesel use. All other factors relatively constant; reducing demand will cause prices to fall. It's that simple. Prices are market driven. Which leads me to one more point: oil companies don't set the prices. You and I do by trading oil on spot and futures markets. Our own greed of making money on the stock market is the primary factor in setting prices. Pick up an economics book, will ya? Pick up a book on the oil industry too, while you're at it. Your ignorance is showing.

We The People

Our son has been using used transmission fluid with a very small amount of diesel fuel for over 2 years now. He gets the used transmission fluid for free since the companies have to pay to dispose of it. He is a master mechanic by trade and said his truck still runs fine.

Evil Bob

Maybe the good ol U.S.A. oil companies should not be exporting the diesel fuel we have just to keep prices high in the U.S.

BronxItalioMan

It comes to my attention that these rising Diesel Fuel prices will eventually cause many Blue Collar Transportation companies to file bankrupt. This is a sad time for America, since back in the 80's and 90's many of our industries moved to Third World Countries, which was the start of selling America out. Everything we buy or own is shipped via, Freight Trains, Tractor Trailers and smaller Trucks etc. These mostly use Diesel Fuel. Well People, we are coming to a very bad time in our country, and the wealthy people this time will profit from it! It is the time in America for people to rise up and tell the Government what we need, as our Constitution was written specifically for our best interest? This was written in case that the one's in power declare an act of turning against it's own citizens, which is happening right before our very eyes! The most I can give as an answer to our rising costs in Diesel, and even Gas in general is GREED! I could go on and on about the dominoe effect that our society has been set up for, but that is another subject, and would not be fiting about this subject. These people could live anywhere in the World, and survive. We could be left to destroy ourselves, or be destroyed for that matter? PEOPLE, WAKE UP! DO NOT ALLOW THEM TO SELL US OUT!

Tawnya in Texas

I don't understand why everyone is whining about the price of fuel and not doing anything about it. Here in a small town in Texas we have started to implement a new way for the price of gas to be around $2.00 A GALLON. We have started to put some H.H.O.'s in our cars and trucks. Yes you will still pay what the gas costs at the pump. But you will do this at 50 miles per gallon less than what you are now. People like you and I are out there trying figure out a way to fix the problem without worrying about blaming anyone. We already know that we are getting the short end of the stick. There is nothing we can really do about it but fix it ourselves. This way our government has no control over how much we pay for gas. They will start losing money, we will take back our paychecks, take back our lives, and eventually our government. Remember in our Constitution it says that when our government is no longer working for the people that it is our duty, not our right, but our duty as Americans to throw out the old and elect a new government through impeachment. We are letting them get away with raising our fuel prices, which raises the price of EVERYTHING else. Why are we letting this happen. We need to use the brain we were given and come together, not just as a nation, because this is a world wide crises, and fix our cars and trucks. Already China is making deals with other country's to make Compressed Air ran cars and trucks, in Texas we are already using HHO (runs on water and gas mixture) cars and trucks. In High Schools across the nation kids, our kids are coming up with differant ideas for making our already sky high prices of fuel actually work for us. Look around. There have been no NEW inventions for a long time. We have altered what was already here. We just haven't invented anything new. Are we so lazy? Has our government really made us believe that there is nothing else? We need to do something. We can't wait. People are losing their jobs. Their Homes. Even their family's all because they can't keep it together due to rising gas prices. Yes, it is getting that bad. I work 15 miles from my home. I had to quit my job due to gas prices. I could no longer afford to get back and forth to work. That only makes it harder for my husband. Now with the HHO invention, life could get back to normal. I do not mean go out and buy one. I mean just figure out what you can do to fix this for yourselves.

CBGB

It took me 10 minutes to read through this thread. And the only thing that comes to mind is, you're all right. I particularly enjoyed the elegant simplicity of the 25% better gas mileage theory. I just checked gas and diesel prices in SC (where the original poster is from) and it continues to, basically, hold true. It is definitely a complicated question with no single, simple answer. But applying Occam's Razor: 1) speculators and institutional investors are holding crude futures contracts longer because oil prices seem to be going nowhere but up (this in itself puts upward pressure on both contract prices and crude prices), 2) no growth in refining capacity while demand has increased exponentially, and 3) complacency and greed on the part of oil executives and crude producers. That's my answer and I'm sticking to it.

Medic115

Well think about this. If oil is 125.00 a barrel, that works out to $2.72 a gallon of oil. Do you really think it takes another $2.00 added to this to create a gallon of diesel. I think not. The oil companies are lining their pockets from the working man. THAT'S ALL

Refinery BS

If the EPA regulations mandates that the refinerys take out more sulfur, then that makes sulfur a by-product. This by-product is marketable is it not. Medical, agricultural and so on. So if the EPA mandates diesel to meet certain levels is this not forcing the refinerys to produce more sulfur that can be sold. Basicaly forceing them to make more money. I belive the truth of the matter is in greed and being able to over price a product. If more consumers understood the basic distalation process they would be furious to how they are getting ripped off.

hbj

Most of you guys here haven't got a clue as to why Diesel is so high. By 2013, China will equal the USA in the demand for oil. Basically, it is diesel that gets the shaft because it is the most used component of a barrel of oil. Yes, the USA has taxed it more highly but that isn't all the reason. There is only about 60-70% as much diesel in a barrel of crude as there is gaso-line.Go check the facts. So, the old myth that diesel costs less to refine is just not true. The low supfur standards of diesel fuel makes it equaly, if not more, expensive to refine.The regulated truck lines can charge a surcharge bue the independent trucker cannot always do this. Been there done that. If you want to stay in business, you have to give the customer a break to ghet the load. Biofuel is not the answer. Coal gasifi-cation is the answer for the next 30 - 40 years. Then, we'll have possibly found an alternative fuel source that is not fossil fuel based. The US Air Force is already experimenting with gasified coal for its fighters and bobmers. They mix it with about 15% JP-5 and it has shown some promise. No the problem is a multifactored one and isn't going to be resolved in the next few years. Isn't this like many other problems that we have? If there's something wrong, just blame Bush!!! Next!

Bill Kidman

Diesel costs more because the oil companies want as much capacity as possible in their refineries for gas. They just have problems keeping up with demand.

Medic115

And what is really frustrating is 10 years ago making BioDiesel was cheap. Methanol, added to waste oil to make BioDiesel, cost less than $1.00 a gallon. When making 25 gallons of BioDiesel, you use about 5 gallons of Methanol, which works out to about .75 cents a gallon to make BioDiesel. NOW, the oil companies have raised the price of Methanol to over $5.00 a gallon, making it no longer cost efficient to make BioDiesel. The Oil Companies way of sticking it to the customer.

bhm in Toronto

Diesel is no longer cheaper than gasoliine in Canada. It is about 10 cents more a litre. 45c a gallon. Also we are the second largest supplier to the U.S. but we also pay world oil prices, not cheaper because we have it. We pay about $1.20 a litre $5.00 a gallon.

pjones04

Yes the oil companies made 30 something billion on gas but the Fed, State and local government taxes were over 3.2 trillion for doing nothing!!! How come you're not bitching about that??

Dawn

A day late and a dollar short I say. Last year when diesel was 2.98 a gallon, we decided it was a better idea considering we have to tow a boat and a trailer. Plus factoring the So Cal commute it was a better gig. OMG. Now we are looking at street bikes to make the commute saving us 400 dollars a month. 100 miles a day my husband travels to work, and I could remember how happy we were with our diesel and the money we were saving versus the 2005 gmc 2500 we had getting 11 miles a gallon. The truck we got is the 2008 Chevy Diesel. Great Truck about 17.5 a gallon. Between the both of us we are spending 1000 dollars a month on gas. Holy smokes you say, well living in So Cal try to find a house that you could afford. O life was good last year going to the river with our trailer and boat now we don't really know what to do. We have a trailer payment, but can't really afford the gas or the food for the weekend. Dear God whats gonna happen?

Penguin

Why does diesel fuel cost more than gasoline? Because most gasoline (at least where I live) has about 10% ethanol added, and ethanol has less energy than gas or diesel fuel. So, you get fewer miles per gallon with gasoline. It's the MPG or energy you're paying for, not the volume amount. Any money you might save by buying fuel with ethanol (from corn) will be lost by the increase in food prices. So these are just a few reasons why ethanol from corn isn't the best solution to our energy crisis. Ethanol is really just a subsidy for farmers.

Ron

Every other country that produces OIL offers discounts to their own residents. Mexico has cheap fuel. Same with Iraq, Venezuela, Saudi Arabia, etc. Not the USA. Even tho the USA does not belong to OPEC, every barrel of oil that comes out of Alaska, Texas, or the Gulf of Mexico is sold to US citizens at the OPEC price per barrel.

fed-up

Because there are more of us using it now!

You have to remember that you are talking about a product that is 'inelastic' meaning that people need to buy it no matter what the price. It is not subject to the normal rules of supply and demand. Also, I was discussing this topic with one of my friends who works for a large European car company and he stated that "there are not enough diesel refineries in the United States and that is why the price is higher." Not sure how much truth there is to this statement though...

Just got back from another trip to Anchorage and Alaska diesel prices have caught up with the rest of the country. Diesel is now more than premimum gas. It is still a little less than Oregon or Washington. I find it interesting that this site has to do with RV Sales. Anyone care to guess how RV Sales will go this summer, or RV traffic on the Alcan ?? You folks asking why we own and drive diesel trucks. In my case, both my 3/4 ton Ford and Dodge gets almost 20 mph when not hauling anything. When diesel was less than regular gas, it was the logical way to go. Not now, however we are stuck with the trucks. I think diesel truck and car sales in the US will also be way down this year.

Sonny

Around 2004, the city council of San Diego had some oil execs on the hot seat wanting them to "explain why petroleum products were higher in San Diego than just about anywhere else." The execs avoided the question until one council member would not let it go. Finally, one of the execs said: "because we can." He went on to say that they will charge whatever the market will bear and cited the cost of government required additives as being partly responsible. Of course, when the government wanted one of those additives removed, the industry said "it will cost money to take it out". If government is responsible for anything dealing with the cost of petroleum, it is in regulating the producers of same to death and consistently denying their request to drill for new large oil reserves in the continential US - especially Alaska. The oil industry in America made about 150 Billion dollars in profit last year alone. So any excuse you hear about refineries being off line, storms at sea, blah blah blah is just a big fabrication. For the last twenty years, our government has been become a big friend to radical left wing enviromentalists and turned its back to the American oil industry. Result? The industry has lost all sense of loyalty. So what is our answer? Let's regulate them some more. When will we ever learn?

RV Tom

Communicate with congressmen. Someone said it would be a great stimulus to the economy to reduce diesel to less than gas prices. It would beat the tax rebate program.

Trucker from Ohio

Jim is correct. Speculation is the main problem. He is also correct that we should hold our politicians accountable on this. It should be a supply and demand driven product, not a speculative market. However fuel surcharges are still affecting the price spread between gasoline and diesel and the speculators know this product can be pushed higher. You can ask most of the travel center managers if when they raise the price of diesel do they loose sales on the truck islands and the answer is no... the trucks are going to buy regardless, they are protected (partially) by the fuel surcharge. They may have noticed a lost at the RV islands and Diesel sold at the auto islands, but not at the truck islands. But like Jim siad, the speculators still control the market for the most part. For those on this board you get burnt because you are such a small percentage of the diesel sales that the industry could care less. Like Jim siad, contact your lawmakers, make your voice heard, maybe someday they will start to listen.

Jim

Set politics aside. Unless I am mistaken, diesel fuel costs less per gallon to refine than gasoline. It follows that the pre-tax and pre-surcharge wholesale price should be lower on diesel fuel than gasoline since the 'stock' is the same for the refined product. Diesel fuel prices are a reaction to future anticipated supply and demand set by oil futures trading. They do not reflect the CURRENT cost of production and supply. Why are we expected to pay a relatively high price based on SPECULATION in this country? That is the question to ask your politicians!

1oilers3

"War is Lost" is so diluded in his hatred of the President that he doesn't have a clue about the Oil Industry. The oil companies make $.08/gallon. Congress makes over $.50/gallon. How much risk did Botox Pelosi and her minions put forth while Exxon was drilling for more oil, hmmmm? You explain Exxon's profits by considering the "free market" system. They have a product that we want and we buy it. I know that concept is strange to the socialists dressed up as liberals out there, but that's the way it is.

Bamboozled in va.

I believe that in normal situations, the market sets the price. That is when there is fair competition. But big oil is a monopoly. It is very compareable to DeBeers in the diomond market.

Trucker from Ohio

A reason not mentioned or I missed it is, FUEL SURCHARGES. Your largest users of diesel charge fuel surcharges and such keep the cost lower. However a lot of truck drivers do not recieve enough to cover the increased cost. In trucking most fuel surcharges are based on a 6mpg and short miles... so in order to cover the increase the truck needs to get closer to 7mpg. Most trucks avg. at 6mpg or less. Not all large companies pass on the actual fuel surcharge collected... JB Hunt and Schneider both make money on this and have agreements with the railroads to pass on a percentage of these profits. You will see more and more truck owners selling out and either quit driving or driving for a large company. Back to fuel surcharges... you the consumer will pay it... a store is not going to pay it and not pass it on.

ronbo

The Government should step in and stop price fixing and people should buy at the least expensive station.

War_Is_Lost

It's 100% the Bush administration's (Republican's) fault...Big Oil donated heavily to his campaigns and he is simply returning the favor. That's why our entire family who has been hard-core life-long Republicans will now only vote straight Democratic, like many other families are starting to do. It will be a pleasure watching Big Oil get taxed clear off this planet after the '08 elections. Some people want to argue this will mean they will pass the taxes onto us, not true that's just a scare tactic...they're ALREADY gouging all of us, that would simply make them even bigger scum suckers since everyone know how much they're profiting. I've learned all the Republican party is good at is loosing wars and supporting big oil.

RV69

Let's get our heads out of the sand ! It's not Bush or Chaney. It is our Congress & Senate that don't have time care what you think, after all we voted them in. They set the taxes and are planning to raise again next year. Where are the road improvements, FAA & flight safety systems, the monies they bled off Social Security, the enviromental folks that don't want new fuel plants to be built or nuclear power. Gee, some of us got a cost of living adjustment that we now put back in medicare and other insurance (net loss)more than twice the COL. Diesel is up more than 3X in 4 yrs. My 97 truck gets close to 20/21 mpg. 93 RV (4-5 times car weights) still gets better than some SUV's. Congress doesn't care they do not pay at the pump, WE pay for them and their expensive vehicles they want us not to have. Express yourself GO VOTE !!

Why?

Isn't this amazing? The oil companies are ripping us off but there are people here who defend them. It's kind of sad.

Montana Mike

I am ashamed to be an RV'er and a Senior. We should be wiser and better informed, insted we either generate or believe this garbage being spread on this topic. Blame the President, he is a Republican, not the Democrat Congress who write and pass the tax laws. Blame the Oil companies, because they make a profit, Lord knows if you were running the company, you would cut the price to be nice. And my favorite, "Don't buy gas for a day", that will show them. Do you have any idea how good a laugh they have over that one? If you want to have an effect, get all of your friends, who believe everything you say, to stop buying from the big companies, Exon/Mobil and Shell. You might also consider only buying from companies that don't use imported oil. But,hay, you have it all figured out, it's Bush, so write him a letter, or start one of those e-mail petitions, that will scare him. I am ashamed of those of you who think you know something about business, but you have never been anything but somebody elses employee. Get educated, or get out of the arena. If you don't risk anything, then you don't recieve a reward. You may not like it, but those big oil companies risk it all every day. A fire in as refinery, or a ship wrecked tanker, or a broken pipe line, or losing an offshore rig. What did you risk? You bought a diesel rig, and the price to operate it went up because of the market---- YOU LOOSE! Get the picture? Quite whining!

Lynbr812

The fact is that when George Bush took office in 2000 the price of Diesel Fuel was $.99/gallon!! The only reason the price of Diesel has increased as it has is because George is bound and determined to line the pockets of all his oil friends!!! Also, we have not built a NEW REFINERY in the USA since the 1970's!! Diesel costs less than HALF the amount of gasoline to process....there is no reason in the world that it should now cost us so much more at the pump! Not only that, but the oil companies and the auto industry do not want us to buy more fuel efficient diesel powered cars! Diesel powered cars can get up to 50-55 mpg!!! Almost all the cars in Europe are diesel powered. The cost of Diesel is artifically high to prohibit the people of the USA from buying the more efficient cars! It is simply GREED on the part of the oil companies! This is a MESS!!! Thanks a lot, George! You have made this mess for us!

TJB

Why is the govt letting oil companies export 6% of diesel fuel and other oil distilates? That is what is driving up the price of diesel. That is why we are paying more for everything we buy. All the goods we buy are transported by vehicles that use diesel fuel.

cb5300

Because they can.....Does 40 Billon in profits ring a bell with you?

fbaol

The "American way" ..villify a person or an organization whenever any problem arises. And never, never admit that there is anything we can do ourselves. It is wonderful that what we believe does not need to be based on facts. What a great world we live in.

LAL

Looking for a boost to the economy - just revert the cost of diesel to less than regular gasoline (as it was prior to 9/11). The ripple effect (I think) would be huge to the consumer and businesses.

Don P.

The oil companies control everything from the drilling all the way through to station pumps so - they can do anything they want. And I believe it's called a MONOPOLY. The gov't. does nothing about it because the oil cos. own them too. Just pay & pay & pay. Nothing you can do about it.

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