At a time when automakers are about to roll out more diesel cars, it’s a bit off-putting to see diesel prices so high, especially because only a year ago they were more than $1.50 cheaper per gallon than they are now. The national average for diesel is now around $4.50 per gallon, compared to $2.80 last year at this time.
Part of the reason why diesel prices are so high is that, worldwide, there are more diesel vehicles now and demand for the fuel is high. Other countries have jumped all over diesels because of increasing oil prices and the excellent gas mileage that diesel engines get.
From the KickingTires article, “Why is Diesel More Expensive Than Gas?”, author Stephen Markley writes:
“Meanwhile, here in the states high gas prices have led Americans to consume less gasoline. In turn, refineries have scaled back their overall production to adjust to the lessened demand. However, the demand for diesel fuel remains the same even though refineries are processing less fuel overall.
“Lawrence Goldstein of the Energy Policy Research Foundation told The New York Times that ‘it is as if sirloin had become so expensive that demand dropped, so farmers raised fewer cows, reducing the supply of hamburger — but hamburger remained as popular as ever.’”
Stateside, the introduction of clean diesel, low-sulfur fuel has also contributed to a price jump because, according to the Department of Energy’s Energy Information Administration, the new fuel has impacted distribution and production costs. EIA lists factors that impact diesel prices in a diesel Q&A, “Diesel Fuel Prices: What Consumers Should Know”:
Learn more
read this article about gas prices; it may answer a few questions you have.
We'll I'm not a conspiracy guy but I don't always buy the economists theories. Yes they are sound but not always correct.
The demand for gas/fuel has not gone down due to rising prices until very recently, so that really doesn't explain why diesel has been driven up.
Yes there are many reasons but speculation and the poor dollar are the real reasons.
All I know is that in Europe diesel is less espensive than gas. And as a ratio they sell much less gasoline to diesel than we do. So if producing less gas in Europe does not affect the production capability (and cost) of diesel, why is it the case here. it's my sincere belief that the oil companies have decided on a cost to travel per mile. As mileage goes up, so goes the cost of fuel. The mileage on diesels has been about 20% more and so the cost of diesel has been about 20% higher. Now that the diesels are getting closer to 30% more mileage, the price of diesel id crepping up to get them the same cost ratios.
Personally, I can't wait for something else that actually works to take over for fossil fuels. I'd love nothing more than to stick it back to them.
do you know that high fuel prices are hurting the trucking industery the most.
big oil is just full of greed, thats it!
how sad, the people running our nation are oil people that really don't care about the nation.
profit at all cost that's how it is.
i ride a bicycle as much as i can just so i'm not giving to them.
when a rich man feels compelled to pull the last dollar from a poor mans pocket he is deranged!!!!
so high demand is driving diesel prices up? funny coz if so diesel shd be more expensive everywhere comapred to gasoline (petrol). In europe asia and major markets diesel is cheaper. Yes they have refineries, yes they have clean diesel (sulfur free) so how come its cheaper there? this article doesnt explain anything. If we r tied to global demand then we shd have the same effects as other countries do globally, how come they have diesel chepaer than gasoline while in the US its the other way around?
I believe that in this election year consumers are getting the most lip-service paid to them, and it shows up in concern over "gas" prices rather than "fuel" prices. Let's face it, we're a greedy bunch and as long as it costs US less, then we are not that concerned with the other guy. But we should be. Gouging-level diesel prices in the face of falling gasoline prices is putting a serious hurt on trucking companies, independent truckers, railroads, farmers, shppers, and anybody else that relies on diesel. It makes all of our prices higher. Shame on our self-serving congressmen for letting this happen.
Diesel is high because oil companies are making a pre-emptive strike to thwart the announced clean diesel cars from VW, Mercedes, Honda and BMW. If the US switched to clean diesel cars, total gallons of fuel consumed would be reduced by at least 25%. Oil companies will not let this happen and US Government won't help because less fuel tax will be collected.
For 40 years Diesel Fuel averaged 10% less than gasoline in the summer to 10% more than gasoline in the winter. The price differential is now 31% were I live. I don't believe that the demand for diesel fuel has increased enough to cause a 20 percent increase in the in the price in the last year or two.
hi ppl i am an alien and hi greetings!!
can ppl be pretty by sleeping in thier car while driving into a ditch i am the alien
AT 60 % HIGHER THAN GASOLINE THIS DAY AT OUT LOCAL WAL-MART GAS STATION, IT IS ROBBERY WITH OUT A GUN, WE ALL KNOW DIESEL IS CHEAPER TO MAKE THAN GAS, IT IS A BI PRODUCT OF GASOLINE FOR GOD SAKE, SO THE OIL COMPANIES ARE STILL STICKING IT TO AMERICA, FOOD,
CLOTHS,LUMBER,MEDICAL SUPPLYS,WAR SUPPLYS YOU NAME IT AND DIESEL WAS USE TO GET IT TO THE STORE SHELF.SO OIL COMPANY EXEC. REMEMBER THIS, THE WAR WE ARE FIGHTING TO KEEP YOUR GREEDY BUTT SAFE,ONE DAY YOU WILL PAY, YOU CAN'T KEEP WHAT YOU STEAL. BE HAPPY WITH 5 BILLION IN PROFIT, $4:00 GAS AND $4:75 DIESEL, YOU ARE VERY MUCH TO BLAME FOR OUR PRESENT ECONOMY. GREED,POLITICS IS THE PERFECT RECIPE FOR THIEF...EVERY TIME
I think it is simply the fact that diesel is used by trucks. Trucks are going to use a certain amount of diesel no matter what the price is. Therefore, diesel is less price elastic than gasoline. That is people can alter there driving habits (carpool, combine trips, take mass transit, etc.) in order to conserve gas, but there is no way for trucks to drive less.
It is a conspiracy on the part of the oil companies. What we need is alternative fuels that are commercial available for use by diesel vehicles. My only hope is that the oil companies won't be involved (but how can they not be?) or they will still be able to stick it to us.
I am surprised by the number of people here who think the oil companies are good guys. They argue that prices are what they are because they are set by the oil companies. I, personally, think the oil companies charge as much as they can for all of their products. But people here argue that they can raise the prices above where they are any time they want. So let's all say thank you to the oil companies for not charging us more, I guess. But I still think they charge what they can, sort of like how I do it when I sell something. Which means I have to look to market forces -- supply and demand and etc. and not to the generosity of the oil companies who, according to people posting here, charge less every day than they have to.
Well the situation has crashed, gasoline is cheap, oil is cheap and its not because the oil companies got tired of making money. Most of the prices reflect a falling value of the dollar. Look at the dollar versus the euro (everyone is buying oil from the same places) and compare it with changes. The dollar is much stronger now. Anyway, for everyone bitching about the prices in europe, this is your answer. As to diesel versus gasoline, thats very hard to explain. However, you must consider these are world markets with tankers carrying gasoline and diesel to more profitable markets. For years this meant european gasoline dumping on american markets. I haven't seen the numbers but I've "heard" that diesel demand in south america is what has driven the price up.
Why are diesel prices so high here in the States?
Because American refineries do not operate with the same technology that refineries use abroad. This can and must be corrected ...
http://www.mpgomatic.com/2008/12/11/us-diesel-production-national-security/
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