OT: diesel fuel: why isn't it cheaper than gasoline?
 

If you don't want to read this thread then don't. This is a legit question not
a troll.

I always though diesel fuel was less refined than gasoline so why isn't it
cheaper than gasoline?
-Bill (remove "botizer" to reply via email)

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

Hi Bill Troll,
You know it's governed by supply and demand. Just like your home
would be worth twenty million dollars if it were in Rancho Santa Fe.
Imagine the diagram of this cracker as a barrel of crude, the
proportions are much the same:
http://www.energyinst.org.uk/educati...as/chemist.htm Gasoline
was a useless byproduct of kerosene, up and until '73 when I was
retailing it for twenty nine cent a gallon. And still diesel was
retailed for twenty one cents a gallon (11¢ of that was tax) up and
until the Mercedes started selling diesels in Kalifornia in '78, and
domed the poor trucker and with that, had the domino effect of killing
American industry, making it impossible to compete with China. F**Kin'
diesel cars!
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/

Wblane wrote:
>
> If you don't want to read this thread then don't. This is a legit question not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

Hi Bill Troll,
You know it's governed by supply and demand. Just like your home
would be worth twenty million dollars if it were in Rancho Santa Fe.
Imagine the diagram of this cracker as a barrel of crude, the
proportions are much the same:
http://www.energyinst.org.uk/educati...as/chemist.htm Gasoline
was a useless byproduct of kerosene, up and until '73 when I was
retailing it for twenty nine cent a gallon. And still diesel was
retailed for twenty one cents a gallon (11¢ of that was tax) up and
until the Mercedes started selling diesels in Kalifornia in '78, and
domed the poor trucker and with that, had the domino effect of killing
American industry, making it impossible to compete with China. F**Kin'
diesel cars!
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/

Wblane wrote:
>
> If you don't want to read this thread then don't. This is a legit question not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

it used to be, then everyone bought diesels and demand for the fuel went up and so
did the price
so do what everyone else does and race to the pump to top off your tank even
though the you know you have enough gas to get you thru the week and make that
demand go up even more and the price to follow
supply and demand. slow down your use, supply goes up and price comes down
time to reinact the 55mph speed limit for a while

Wblane wrote:

> If you don't want to read this thread then don't. This is a legit question not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

it used to be, then everyone bought diesels and demand for the fuel went up and so
did the price
so do what everyone else does and race to the pump to top off your tank even
though the you know you have enough gas to get you thru the week and make that
demand go up even more and the price to follow
supply and demand. slow down your use, supply goes up and price comes down
time to reinact the 55mph speed limit for a while

Wblane wrote:

> If you don't want to read this thread then don't. This is a legit question not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: diesel fuel: why isn't it cheaper than gasoline?
 

Diesel goes up in the fall because for demand in the NE for home heating
oil. During the summer months it's lower at the larger outlets then
gasoline. Also in the fall people are done with vacations and the demand for
gas goes down. As Bill pointed out"supply and demand" determine the price.

JoBo

"Wblane" <wblane@aol.combotizer> wrote in message
news:20041104165622.06439.00000105@mb-m18.aol.com...
> If you don't want to read this thread then don't. This is a legit question
not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: diesel fuel: why isn't it cheaper than gasoline?
 

Diesel goes up in the fall because for demand in the NE for home heating
oil. During the summer months it's lower at the larger outlets then
gasoline. Also in the fall people are done with vacations and the demand for
gas goes down. As Bill pointed out"supply and demand" determine the price.

JoBo

"Wblane" <wblane@aol.combotizer> wrote in message
news:20041104165622.06439.00000105@mb-m18.aol.com...
> If you don't want to read this thread then don't. This is a legit question
not
> a troll.
>
> I always though diesel fuel was less refined than gasoline so why isn't it
> cheaper than gasoline?
> -Bill (remove "botizer" to reply via email)

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

There's a little bit of faulty logic there. If you're burning 15 gallons
a week it doesn't matter if you top off your tank this week or next, over
a multiweek span it is _still_ 15 gallons a week. You haven't changed
demand at all, you just shifted it one week.

The real demand fluctuation comes from the heating season: Diesel fuel is
very similar to home heating oil (can we take the "It is too the same/is
not exactly the same" arguments as read?) Maximum delivery for that
family of product is restricted by refinery capacity and transportation
methods. When demand goes up, so does the price. There are no economies
of scale that come into play because the fluctuation is seasonal -- the
price will not go down just because you are selling more. Simple
capitalism at work.


On Fri, 5 Nov 2004, mic canic wrote:

> it used to be, then everyone bought diesels and demand for the fuel went
> up and so did the price so do what everyone else does and race to the
> pump to top off your tank even though the you know you have enough gas
> to get you thru the week and make that demand go up even more and the
> price to follow supply and demand. slow down your use, supply goes up
> and price comes down time to reinact the 55mph speed limit for a while
>
> Wblane wrote:
>
>> If you don't want to read this thread then don't. This is a legit question not
>> a troll.
>>
>> I always though diesel fuel was less refined than gasoline so why isn't it
>> cheaper than gasoline?
>> -Bill (remove "botizer" to reply via email)
>
>

--
Some conditions apply. YMMV. This message was packed by weight, not
by volume. TWIAVBP, local variation may occur. Dramatization, not a real
authority. Do not induce vomiting. No user-serviceable words inside.

Re: OT: diesel fuel: why isn't it cheaper than gasoline?
 

There's a little bit of faulty logic there. If you're burning 15 gallons
a week it doesn't matter if you top off your tank this week or next, over
a multiweek span it is _still_ 15 gallons a week. You haven't changed
demand at all, you just shifted it one week.

The real demand fluctuation comes from the heating season: Diesel fuel is
very similar to home heating oil (can we take the "It is too the same/is
not exactly the same" arguments as read?) Maximum delivery for that
family of product is restricted by refinery capacity and transportation
methods. When demand goes up, so does the price. There are no economies
of scale that come into play because the fluctuation is seasonal -- the
price will not go down just because you are selling more. Simple
capitalism at work.


On Fri, 5 Nov 2004, mic canic wrote:

> it used to be, then everyone bought diesels and demand for the fuel went
> up and so did the price so do what everyone else does and race to the
> pump to top off your tank even though the you know you have enough gas
> to get you thru the week and make that demand go up even more and the
> price to follow supply and demand. slow down your use, supply goes up
> and price comes down time to reinact the 55mph speed limit for a while
>
> Wblane wrote:
>
>> If you don't want to read this thread then don't. This is a legit question not
>> a troll.
>>
>> I always though diesel fuel was less refined than gasoline so why isn't it
>> cheaper than gasoline?
>> -Bill (remove "botizer" to reply via email)
>
>

--
Some conditions apply. YMMV. This message was packed by weight, not
by volume. TWIAVBP, local variation may occur. Dramatization, not a real
authority. Do not induce vomiting. No user-serviceable words inside.

Re: diesel fuel: why isn't it cheaper than gasoline?
 

I said the same thing, later than you in this thread. It doesn't really
answer his question, though.

IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
than gasoline" is something of a popular myth. Both are distillates of
crude oil, along with LNG, jet fuels, various waxes, lubricating greases
and asphalt, they just appear at different parts of the spectrum but they
are all "refined". Refiners can extend production of lighter products by
cracking heavier products, but it still all comes out of that $50 barrel
of crude and provides a product in higher demand by sacrificing a product
with lower demand.

Fuel prices ain't ever going to go down in any real way. They will only
go up from here -- unless the next round of influenza kills off 1/3 of the
energy-consuming population.


On Fri, 5 Nov 2004, Jo Bo wrote:

> Diesel goes up in the fall because for demand in the NE for home heating
> oil. During the summer months it's lower at the larger outlets then
> gasoline. Also in the fall people are done with vacations and the demand
> for gas goes down. As Bill pointed out"supply and demand" determine the
> price.
>
> JoBo
>
> "Wblane" <wblane@aol.combotizer> wrote in message
> news:20041104165622.06439.00000105@mb-m18.aol.com...

>> If you don't want to read this thread then don't. This is a legit
>> question not a troll.
>>
>> I always though diesel fuel was less refined than gasoline so why isn't
>> it cheaper than gasoline?


--
Some conditions apply. YMMV. This message was packed by weight, not
by volume. TWIAVBP, local variation may occur. Dramatization, not a real
authority. Do not induce vomiting. No user-serviceable words inside.