Re: DML Gas Prices

From: Jason Bleazard (dml@bleazard.net)
Date: Fri Sep 02 2005 - 12:39:36 EDT


On Fri, September 2, 2005 11:33 am, jon@dakota-truck.net said:
>
> Yep, plus another thing I have yet to figure out is the price of diesel
> as compared to gasoline. One would *think* that they would basically move
> in lockstep, based on the crude oil price, but they seem to be quite
> independent of each other, and as you say, not necessarily completely
> dependent on the price of crude.

I've noticed this as well. About four weeks ago, I think unleaded here
was around $0.949 per L and diesel was $0.999 per L. This morning I
noticed that unleaded was $1.349 per liter and diesel was $0.999 per
liter. So, um, the increased price of oil means we had to raise the price
on unleaded by 35% while we raised the price of diesel by 0% ??? Does not
compute.

That diesel Ram idea is sounding better and better (particularly when I
ponder towing the trailer to Denver next year). I wonder if I could trade
both Dakotas straight across for one Ram 2500 CTD 4x4 and one crappy
tinfoil Matchbox commuter car.

> As far as I can determine, of the amount of crude oil consumed in
> the US, gasoline accounts for a tad over 40%, and diesel/heating oil 20%.

That's interesting. I would have expected diesel to be used more. It
goes in every bus, train, semi truck, ship, piece of construction
equipment, etc. There may be more cars on the road, but cars don't have
hundred or thousand gallon fuel tanks.

> So it would seem that diesel is in much less demand than gasoline, plus it
> is less refined and thus should cost less to produce. Yet it is quite
> often
> as expensive (or more expensive) than gasoline. This is something that
> has
> puzzled me and unfortunately I just don't know enough about the situation
> to be able to explain it.

Economy of scale, maybe?

-- 
Jason Bleazard  http://drazaelb.blogspot.com  Burlington, Ontario
his:  '95 Dakota Sport 4x4, 3.9 V6, 5spd, Reg. Cab, white
hers: '01 Dakota Sport 4x4, 4.7 V8, Auto, Quad Cab, black



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