So why is diesel more expensive than gasoline?

[SSSnail]

I thought and thought about this, and haven't come to any good conclusion why diesel is more expensive than premium gasoline around here. No, we don't need to heat anything.

Any thoughts?

 

[pyonir]

I thought it was because of the refinery process...it's more expensive to make or something? :shrug:

 

[EightySix Four]

More energy per liter or gallon.

One gallon of diesel is 147,000 BTU, while one gallon of regular unleaded is 125,000 BTU.

 

[SSSnail]

Originally posted by: pyonir
I thought it was because of the refinery process...it's more expensive to make or something? :shrug:

Me tap sarcasm meter

 

[EightySix Four]

Diesel is actually more "raw" and considered easier to refine as well.

 

[destrekor]

good question. Less than a decade ago diesel was cheaper than 87 octane fuel. It's supposed to be a less refined crude product. Maybe more of crude oil is going into the production of regular gasoline and less is available to be refined as diesel?

 

[PottedMeat]

Maybe you get less diesel per barrel of crude than gasoline?

 

[SSSnail]

Originally posted by: PottedMeat
Maybe you get less diesel per barrel of crude than gasoline?

Stop it, you're gonna really break my sarcasm meter.

 

[EightySix Four]

No, diesel is cheaper and easier to refine, which is why it used to be cheaper at the pump.

Oil/Gasoline companies have realized that diesel has more energy per gallon, so a small diesel vehicle can outperform (at the low end) and get better gas mileage than a standard gasoline vehicle, so they raise the price to make us less likely to buy a VW TDi or equivalent. (slightly conspiracy theorist approach)



edited for clarity and stupidity on my part

 

[pyonir]

Edited for clarity. Simple answer is tax rates between diesel, gasoline, and ethanol. Diesel is taxed higher by the feds, and in most cases by states, but not all of them.

Fed tax rate is 18.4 cents for gasoline, 24.4 for diesel, and 13.1 for ethanol.

States vary for example the largest difference I can find is Pennsylvania:

31.2 for gasoline, 38.1 for diesel, and 16 for ethanol.

So essentially you have an enviromental bias to steer you in the form of a tax.

Two other reasons are:

-High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China and the U.S. and a tight global refining capacity available to meet demand.
-The transition to low-sulfur diesel fuel in the U.S., which is affecting diesel fuel production and distribution costs.

From http://www.biodieselnow.com/forums/t/19309.aspx
Reputable? I dunno...but the main theories seem to surround around supply and demand and taxes.

 

[Fenixgoon]

supply and demand - diesel is a certain fraction of refined petroleum, so based on yield alone per barrel/ton/gallon, price may vary. then you have demand - only have machinery really uses diesel. If consumers started using diesels in large percentages, price would go up then come down (due to the increased demand, low supply, then eventually equilibrating of supply/demand)

<-- not an economist

 

[frostedflakes]

The new low sulfur requirements probably increased cost of production. Also the US government may tax it more because it's mainly used for industrial and commercial applications. I think the reasons diesel is cheaper in Europe is because governments don't tax it as much as gasoline, and I don't think theirs is quite as clean as ultra-low sulfur diesel now required in the US.

EDIT: Looks like pyonir beat me to it.

 

[1prophet]

Heating oil is also very similar to diesel and production has to change over to it for winter use, plus the new mandated ultra low sulfur diesel is more expensive to refine.

DIESEL FUEL; GASOLINE; OIL; PRICE CONTROL; RETAIL TRADE; STATISTICAL INFORMATION

 

[cheezmunky]

has to do with supply & demand and the amount of diesel yielded from the current refining process in the US

...or so says the latest car and driver

 

[ades]

To maximize profits?!

Sometimes diesel a lot cheaper than regular, sometimes more expensive, it is a true mystery.

 

[jpeyton]

Here is why.

 

[OdiN]

Because cars can go farther on less so they have to charge more now since more deisel vehicles were becoming more popular.

 

[jagec]

Originally posted by: jpeyton
Here is why.

Yup.

In many if not MOST other countries, diesel is cheaper than gas, sometimes significantly so.

 

[AlienCraft]

Originally posted by: ades
To maximize profits?!

Sometimes diesel a lot cheaper than regular, sometimes more expensive, it is a true mystery.

Any other answer ignores why Oil Companies exis / Capitialism Law #1: Make Profit at any cost.
That any other benefit is derived is none of their concern, except if it disrupts their business model.

 

[FoBoT]

supply/demand
those big trucks on the highway carrying all the crap we buy at walmart and target and the grocery store use diesel

diesel >>>>>>> gasoline

 

[amdhunter]

Originally posted by: OdiN
Because cars can go farther on less so they have to charge more now since more deisel vehicles were becoming more popular.

 

[SampSon]

International demand is driving up prices.