>
>Date: Tue, 6 Sep 2005 13:31:23 +0000 (UTC)
>From: Walt@Walt-n-Ingrid.Com
>Subject: Re: DML: RE: DML Gas Prices
>
>In article <df9rcs$np1$1@bent.twistedbits.net>, jon@dakota-truck.net
>writes:
> >
> > 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...
>
>Since Diesel and #2 Fuel Oil are so close to each other in molecular chain
>(15-18 carbons per molecule), I would suspect that diesel prices would be
>affected by the demand for heating oil as well.
>
>Walt
>
Very true, also I think due to the nature of diesel being used primarily by
commercial customers. I've been told that they are much less willing to
deal with crazy prices as the little guy buying gas. My GF has a TDi and
I've noticed that diesel prices are typically $.25 or more less than gas
during the summer and then see-saw the other way during the winter.
Zach
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