Diesel Fuel and the Economy

badshotbob · 05-24-2005, 09:54 AM

In my part of the woods, gas prices have been steadily dropping over the past few weeks. Unleaded is now below the 2 bone mark. However, diesel fuel remains high at $2.29/gal.

To my understanding, diesel fuel is actually cheaper to produce than gasoline, so why is it more at the pumps than gasoline? Why doesn't it fluctuate as much as gasoline?

My answer: Diesel fuel drives this country as well as this planet. Sure, we all need gasoline, but think of what diesel fuel does for this world: the trucking industry, trains, heavy equipment, ships... all of commerce could not function without it. Inflation, de-valuing the dollar, de-industrializing this nation.... all part of what is upon us, partly being driven to its destination by high priced diesel fuel.

Think I'm nuts? Offer me a better excuse.

tardfarmer · 05-24-2005, 10:03 AM

Quote:

Think I'm nuts? Offer me a better excuse.

My guess would be volume. I don't know for a fact but I would bet a hefty amount that more gasoline is sold than diesel, hence "supply and demand" dictates that it's price is relatively steady.

Deleted User · 05-24-2005, 10:10 AM

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rick_reno · 05-24-2005, 10:36 AM

I remain convinced fuel prices are yet another way to get us into parity with the rest of the world. We've enjoyed cheap fuel here for decades, that's about to end. Our fuel costs will be about the same as other developed nations soon.

Wolf killer · 05-24-2005, 10:39 AM

Diesel fuel is lower than gas in my home town. Diesel is 2.11, Gas is 2.23. The owner of my local gas station said the Bio-Diesel market is taking off. He said more people are buying bio-diesel. This leaves more #2 diesel at the pumps. This is a classic case of supply & demand.
The last price I saw on bio-diesel was 2.09 a gallon.

badshotbob · 05-24-2005, 10:57 AM

Quote:

ORIGINAL: Wolf killer

Diesel fuel is lower than gas in my home town. Diesel is 2.11, Gas is 2.23.

Well that blows my theory. Upon further investigation, I've discovered that the price of diesel closely mirrors the price path gasoline has taken over the past 53 weeks. So, I guess I'm nuts. I still think it's a tin-hat convention to bolster inflation.

Wolf killer · 05-24-2005, 12:27 PM

Quote:

So, I guess I'm nuts. I still think it's a tin-hat convention to bolster inflation.

badshotbob, You are not nuts. Big oil producers do not care about the little guy. Look at the profit margins the oil producers are raking in.
I think we are being suckered in at this current time? They have lower the prices for the time being. How long will they stay under $2.50 a gallon??? I am predicting by this time next year we will be paying around $2.75 a gallon? I hope I am wrong.

kevin1 · 05-25-2005, 05:35 AM

ORIGINAL:rick_reno

Quote:

I remain convinced fuel prices are yet another way to get us into parity with the rest of the world. We've enjoyed cheap fuel here for decades, that's about to end. Our fuel costs will be about the same as other developed nations soon.

That doesn't make sense Rick .
The prices you see on the pumps in Europe are high because they pay for a lot of their social(ist) programs via fuel taxes . We pay considerably less in fuel taxes because our social programs are funded mainly by our income taxes .