why is diesel still so expensive?

FoBoT

No Lifer
Apr 30, 2001
63,084
15
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fobot.com
why is diesel still so expensive?

over the past couple months as gasoline prices rose, so did diesel

now that gasoline prices have receeded, diesel has stayed about at the peak price


can you tell me why?

thanks
 

Vette73

Lifer
Jul 5, 2000
21,503
9
0
Diesel = heating oil. So they have to keep prices high so the other does not seem so off.

More price fixing. Where theres a honest buck to make, theres at least 2 dishonest bucks to make

 

FoBoT

No Lifer
Apr 30, 2001
63,084
15
81
fobot.com
ah, tied to heating oil with winter coming

that makes sense

yes, gas was $2.39 at the station today in MO
 

Pabster

Lifer
Apr 15, 2001
16,986
1
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Regular unleaded (87) is down as low as $2.29 in some parts of Iowa here. It is $2.39 here right now as well.
 

FoBoT

No Lifer
Apr 30, 2001
63,084
15
81
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had to google bunker diesel

Bunker C fuel oil, which is also known as Type 6 heating fuel oil in Canada, or No. 6 fuel oil in the United States, is a grade of residual fuel oil that may be blended with smaller quantities of distillates to obtain a fuel oil with a specific viscosity as required by the end-user. Unlike some other fuel oils, bunker C fuel oil can be quite variable in composition and properties as only a few qualities are specified for it under the national standards of Canada.

Bunker C fuel oil is an inexpensive and readily available source of energy in many parts of the world. While it is commonly used as a fuel in industrial burners in large-scale heating and power-production stations (the extra equipment and maintenance required to handle this fuel oil generally makes it impracticable for use in small installations), it is also used as a fuel in internal combustion engines of the compression-ignition type aboard certain marine vessels.
basically non-road taxed "oil" that might be usable in a diesel engine, possibly
 

jadinolf

Lifer
Oct 12, 1999
20,952
3
81
Originally posted by: Pabster
Regular unleaded (87) is down as low as $2.29 in some parts of Iowa here. It is $2.39 here right now as well.

Not bad. Not bad at all!
 

OrganizedChaos

Diamond Member
Apr 21, 2002
4,524
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Originally posted by: FoBoT
had to google bunker diesel

Bunker C fuel oil, which is also known as Type 6 heating fuel oil in Canada, or No. 6 fuel oil in the United States, is a grade of residual fuel oil that may be blended with smaller quantities of distillates to obtain a fuel oil with a specific viscosity as required by the end-user. Unlike some other fuel oils, bunker C fuel oil can be quite variable in composition and properties as only a few qualities are specified for it under the national standards of Canada.

Bunker C fuel oil is an inexpensive and readily available source of energy in many parts of the world. While it is commonly used as a fuel in industrial burners in large-scale heating and power-production stations (the extra equipment and maintenance required to handle this fuel oil generally makes it impracticable for use in small installations), it is also used as a fuel in internal combustion engines of the compression-ignition type aboard certain marine vessels.
basically non-road taxed "oil" that might be usable in a diesel engine, possibly

here in the US we use NO. 2 as both diesel and heating oil. Bunker C is thick sloppy crap that is only good for huge marine diesels that are never shut down and power plants
 

Rubycon

Madame President
Aug 10, 2005
17,768
485
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Originally posted by: OrganizedChaos


here in the US we use NO. 2 as both diesel and heating oil. Bunker C is thick sloppy crap that is only good for huge marine diesels that are never shut down and power plants

Hey hey there!

:p

 

jkersenbr

Golden Member
Jun 22, 2000
1,691
0
0
supposedly it's because hurricane Rita affected more refining capacity for Diesel than Unleaded, but I tend to subscribe to the dishonest dollars to be made reason....

By the way, if you try to use #6 fuel oil, even diluted, or untaxed/off-road use #2 in an on-highway application and get your fuel or emissions checked you'll be parking your vehicle and paying a fine.

Current Diesel Price Here = $3.15
Current Unleaded Price Here = $2.55
Current Liquefied Propane Gas price here = $1.19 (becoming an attractive option)
Heating Oil Is Nonexistant Here
 

snoturtle

Golden Member
Apr 28, 2001
1,609
1
81
up this way heating oil dropped down also
around 2.20-2.30 but diesel is still around 3.00 a gallon

I know there very similar but no reson for that much of a difference
 

OrganizedChaos

Diamond Member
Apr 21, 2002
4,524
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Originally posted by: snoturtle
up this way heating oil dropped down also
around 2.20-2.30 but diesel is still around 3.00 a gallon

I know there very similar but no reson for that much of a difference

dosen't look like all that big a difference to me when you subtract taxes. 24.4 cents per gallon federal tax + up to 30 cents per gallon state tax.

 

Vette73

Lifer
Jul 5, 2000
21,503
9
0
Originally posted by: OrganizedChaos
Originally posted by: snoturtle
up this way heating oil dropped down also
around 2.20-2.30 but diesel is still around 3.00 a gallon

I know there very similar but no reson for that much of a difference

dosen't look like all that big a difference to me when you subtract taxes. 24.4 cents per gallon federal tax + up to 30 cents per gallon state tax.


yep. The problem is if the price of diesel comes down to what it should be, then people will subtract the tax from the fuel to get the heating oil price and see there is a major difference. So they can;t lower the price of one without showing their hand on the other. Just like a gas dist. here in NC that got cought trying to fix the price of gas. Now they got their money off gas but want to keep it for heating oil as well.
 

C'DaleRider

Guest
Jan 13, 2000
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I don't remember much time that diesel has ever been cheaper than gasoline in my 34 years of driving in the southeast........diesel's always been at least a few cents more expensive than gas. Of course, thank goodness our gas prices are finally dropping down to under $2.40/gal...diesel is still over $3/gal. The gas prices are dropping now 2 1/2 weeks after they spiked .40 overnight. Went to bed on a Thursday two weeks ago and Friday it jumped to $3.29. Stayed there for almost a week but has drifted down by almost a dollar since.

Oh, and we don't use heating oil down here in the South......heat's usually electric or gas here, some use propane, but a small fraction use that. Heating oil doesn't exist here.
 

funboy6942

Lifer
Nov 13, 2001
15,368
418
126
When you think of diesel trucks and the VW golf comes to mind but there is alot more to it. Im just guessing here but if you took up all the trucks, trains, construction equipment, and ships that run on diesel they would consume more diesel in one day then all the cars in the same period.

Thoes really big monster dump trucks the size of a house if I remember correctly they suck up something like 1600 gallons of diesel in a 12 hour shift and they run them 24 hours a day and there is alot more then one of them. And I dont even know how much the craines the use to scoop up the earth would use but Im sure it is around the same ball park.

If we feel like were getting the shaft I feel for all who drives a diesel or uses some for of diesel powered engine to make a living. Hell even cars that are supposed to run on diesel coming out that gets like 40 mpg, if you factor in the price diff your not going to save anything.

When you think of diesel most think of OTR trucks. You have almost every form of construction equipment runs on diesel. All your trains, most ocean liners and yahts all run on diesel and these dont get 2 miles to the gallon. So I would really think that diesel is up in price because more of it is being used and thats where the big oil companies are making a real killing. So why bring that price down amost everything that uses that fuel has to there is NO other option for it so they will have to pay no matter what the price and we as consumers end up paying more for our stuff in the long run. IMO of course.

And yes there are 2 different types of diesel other then winter and summer blend. You also have non highway use diesel which is slightly cheaper. When I worked construction our bosses made us use it in all or vechiles including our PU's because it was cheaper but hell on the enviroment. But in either case they both cost a butt load more money then Gasoline right now and its the most used fuel.