----- Original Message -----
From: <jon@dakota-truck.net>
To: <dakota-truck-moderator@bent.twistedbits.net>
Sent: Friday, September 02, 2005 10:33 AM
Subject: Re: DML: RE: DML Gas Prices
>
> 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. Sometimes diesel will be cheaper than
> gas (it used to be a LOT cheaper), other times it can be $.20/gallon
> higher! 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%.
> 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. The only thing I can think of is that diesel
> consumers are probably less able to be "picky" than gasoline customers.
> People who use diesel are truckers, ships, industrial customers, etc.
These
> are the people who basically *must* buy it or they will imediately go out
of
> business. It may be that the gasoline companies know they can gouge these
> people and there's not a lot they can do. Many consumers of gasoline on
> the other hand have the option of purchasing a more fuel efficient
vehicle,
> driving less, taking alternate means of transportation, etc. That's all I
> have been able to come up with so far...
> -Jon-
>
I'd noticed the same thing with the diesel fuel; I think it's just a matter
of basic greed.. They know too many people are dependant on it, and that it
does require less refining to make it. Therefore.. killer profit margin..
even despite taxes.. Selling the diesel is where thier bigger money is. If
I'd gone diesel when I did my engine swap.. I'd already be aiming towards
McFueling it.. Old vegetable oil will be a great alternative until it
becomes more popular.. then waste cooking oil will suddenly have value..
Aaron
This archive was generated by hypermail 2b29 : Sat Oct 01 2005 - 12:50:23 EDT