why is diesel still so expensive?

[casper114]

Originally posted by: yobarman
Where are you paying 2.39 for gas??? We still have $3 a gallon gas in rochester!

2.17 in Oklahoma, there is one station that has it for 1.99

 

[PingSpike]

Originally posted by: spacelord
Wasn't diesel cheaper than unleaded gas a few years ago???

It should still be. They are both made from oil, diesel just requires less refining, thus it should always be cheaper.

I don't really buy that winter thing, sounds like price gouging to me. Its not like the increase in demand during winter would be some huge surprise. And it hardly explains why it never went down in price all summer long.

THAT is the thing that absolutely pisses me off the most, why is diesel not always cheaper than gas? You can't say it costs more to make, because it doesn't. And its distributed and made from the same supply so WTF?

I suppose there's some supply demand thing...but that doesn't even make sense to me. If the demand is so much higher, why not just make more of it? Its easier to make than gas.

I think there's more demand for it, and since we live in a 1 option energy market they just gouge on it because they can.

 

[PowerEngineer]

Here's a snippet from the Detriot Free Press


Perhaps the most overlooked reason for the sharp rise in diesel prices in the United States is the federally mandated adoption of low-sulfur products.

In 2000, the U.S. Environmental Protection Agency issued rules that require oil refineries to manufacture low-sulfur diesel that reduces the air pollution cars and trucks emit. The new fuel must be available at retail stations by Sept. 1, 2006.

The switch to the more environmentally friendly fuel has strained refinery operations significantly. Additionally, diesel demand in places like Europe and Asia is growing at faster rates than demand for gasoline.

"It is also becoming a larger percentage of energy use around the globe as compared to gasoline use. As a result, that higher cost is being passed through to the economy in the form of fuel surcharges and more expensive products, " said Ben Brockwell, director of pricing and data services for the Oil Price Information Service in Maryland.

 

[whistleclient]

Peak Oil.