Why is diesel more expensive than gas?

[KansDem]

Driving to work today, I noticed the price for a gallon a diesel was more than the price for a gallon of regular. I thought diesel was suppose to be less. Wasn't diesel-powered automobiles considered a possible alternative to high gas prices during the 1970s?

PS--I was a "good citizen" and checked for duplicates! :)

[lectrobyte]

1. diesel always seems to be close to the price of gasoline. diesel

powered cars are good alternatives, however, because they typically get better mileage than a comparable gasoline powered car.

[ProfessorGAC]

2. I Think It Has To Do With Yields

Refineries get way more gasoline from a barrel of crude than they do fuel oils. And, the demand for gas is so high, they're not motivated to adjust the process and cut back on gas production.

Not 100% sure that explains it, but it's one reason.

Now, as to the alternative, diesel used to be much closer to gas, and diesel cars tended to get much better mileage. So, the net cost of use was lower, even if the price was the same. (I had a friend that had a VW Rabbit diesel that got almost 50mpg, in the early 80's.)
The Professor

[havocmom]

5. Fuel costs aside, don't diesel engines just last longer?

And folks, while you notice how high that diesel fuel is getting, think about this:

It takes diesel to farm/grow your food and it takes diesel to get that food to your area. More going up than just the price of diesel. Your cereal bowl will cost more to fill too.

[ProfessorGAC]

8. That Sounds Right

You can get a whole lot more mileage on a diesel without rebuilds or overhauls. Some big rigs get a million miles without any major maintenance.

As to your second point, that is the reason why the two dimensional economists don't include fuel in the market basket of CPI. They say it's too volatile (whiny nonsense) and that it's reflected in the price of everything else. (True but not when the average person spends >$1,500, or greater than 3.2% of median household income, on gasoline.)

So, you're right, but it's even worse when we include the impact of direct energy.
The Professor

[havocmom]

12. I live in an area of wheat and beef production

The companies that travel to do custom grain combining said they won't even come this far next year unless there is a huge drop in fuel prices (which we don't see happening). So, the farmers have this great wheat producing land, and are gonna have to do something else with it.

Urban populations need to think a bit more about their food sources.

And with Congress letting the Country of Origin labeling for foods stuff fall away, US consumers are not aware of just how much food comes from other lands. Consequently, MORE food WILL come from other lands.

If we hate foreign powers controlling our gas tanks, we are not gonna enjoy foreign despots and their multi-national (read: no national laws anymore) corporate pals control our bellies.

[Bluerthanblue]

13. there is also a 'user fee' on diesel at the pump- and not only does deisel

fuel farms, trucking, it also fuels many power plants- and it heats many homes- essential things-

[tammywammy]

17. Yes they do last longer

I currently own an 06 Beetle diesel, and one of the reasons I bought it was because how long the engines can last. I can go 200K on this engine and not have to worry (still doing the regular maintenance), unlike the Chevy Cavalier I traded in which had 93K on it and was worried it would just explode at 100K.

On a passenger vehicle, the diesel engines are a little more expensive to maintain, but they hold up well.

A little side note, farmers use a non-taxed diesel as opposed to me when I fill up I pay the usual taxes. The non-taxed fuel is dyed (red I think) and the govt. will check regular fuel stations to make sure they're not selling the non-taxed diesel.

BTW if you want more info on the maintenance and stuff of diesels, check out www.tdiclub.com

[havocmom]

18. Government also checks fuel tanks of cars & trucks for red fuel

Tax or no, the diesel is getting expensive and it is hitting food production and transport.

Your gruel will be going up along with your fuel.

[tammywammy]

19. Yep

A few months ago truckers in Florida stopped up the highway in protest of the diesel prices. They won't stand for high prices for too long.

[havocmom]

20. Been waiting for that to start. There will be a day, and not to far off,

when the signal will be given and the US Interstate Highway System will be a parking lot due to big rigs left on all the pavement.

I would recommend people keep some canned goods stashed. Will be much more useful than duct tape.

[trogdor]

16. Actually...

...yields are about equal for gas and diesel, although that depends on the source of the crude oil.

Some extra gasoline is made from breaking up the longer molecules that make up diesel by means of a catalyst. They've been doing this for at least 50 years.

Diesel vehicles get better mileage because the potential energy of diesel is higher (I think by 30%) than gasoline.

[tammywammy]

3. Two reasons

it's winter, and the cost of heating fuel increases.

2. The refineries had to reformulate diesel to meet new EPA restrictions, thus more cost for the per gallon price of diesel. My uncle who works at a refinery said (this was back in late Sept) they expected the price to increase $0.50 per gallon because of the reformulation. They were getting ready to change over to the reformulated diesel when Rita hit.

For what its worth, I drive a diesel Beetle, and even with the higher cost, I wouldn't trade it, because the mpg is much better. It's still cost beneficial to run diesel vs gas.

[mainegreen]

4. Thought it had something to do w/natural gas

I think I remember hearing that whatever is used to produce diesel can be used to make natural gas (or propane/same thing?). Since there is a 'shortage' of natural gas this winter, it drives up diesel prices.

[davidinalameda]

6. all I know is that diesel doesn't evaporate as fast as gas

I thought the price had something to do with that

[formercia]

7. On the good side

There's more potential energy in a gallon of diesel vs Gasoline.

[Toots]

9. Didn't used to be so

It was only a few years ago that diesel took huge leaps in the price. It was about the time many folks were starting to buy diesel pickups and passenger cars more often. When the demand went up so did the price. It has absolutely nothing to do with refining. Gasoline is far more refined than diesel

[Ian David]

10. If the damn hippies would let us hunt whales for kerosene...

:sarcasm:

[Bluerthanblue]

15. kerosene?? blubber maybe, but kerosene???

lamp oil? not fuel for cars or furnaces, or powerplants???

[sojourner]

11. prices for diesel used to trail that of gasoline by

at least 10 cents...

but that was back in 1999, 2000. i think that the oil companies figured out that this was an underpriced commodity...but i don't have proof or enough knowledge about how this works to give more than my own perhaps twisted rationale.

i do know that once it crept up to parity with gasoline prices, then surpassed it, that it hasn't gone back down...and i don't expect it to either...

(reason i know, btw is cuz in 99 i bought a vw jetta turbo diesel....believe me, i paid attention when prices went up!)

[Bluerthanblue]

14. it is winter- people need #2 heating oil- and without it they freeze

to death. So, while we cut 'fuel assistance' to the neediest, and the cost goes up (demand increases price) expect many more instances of elderly folks being found dead in thier homes due to hypothermia or suicide.
It's been a problem for awhile here in New England- it will be a tragic winter for many- Folks learning how to burn wood, will inevitably bring more house fires as well-

I lived through the fuel crisis in the 70's - people are desperate, and in debt already, just trying to get by- never mind paying nearly twice as much for heat- on top of everything else-