Why is Diesel fuel more expensive than Gas sometimes (like right now)?

thecarman

Well-Known Member
Joined
Mar 17, 2005
Location
Apex, NC
I have always wondered why diesel is more expensive than gasoline sometimes. We have a TDI Jetta, and our Burb is a diesel, and so is my tractor, so I'm always watching the prices.

Seems like in the past year or two (before the hurricane), diesel has fluctuated from about 10 cents cheaper than regular unleaded to 20 cents more (being the same as premium gas). I have heard that diesel fuel supply competes with heating oil in the winter, driving up the price of diesel.

But I always expect diesel to be cheaper than gas. Doesn't it cost less to make? Doesn't it take more refining of crude oil to make gas, than it does to make diesel?

I thought maybe diesel was taxed higher than gas, but I just checked, and it looks like they are taxed the same in NC.

Since the hurricanes, gas prices went up more than diesel prices. I figured that was because there was a big surge in demand for gas, but not for diesel. I figured the greed would be equal for both - gas companies would try to jack up the price equally on both, so I thought the difference must be in the demand.

But this past weekend, diesel prices jumped 20-50 cents. Gas didn't move much. What's up with that? What would cause that?
 
The refinery supply is tighter. I think fuel oil purchases are putting the squeeze on them now.... but I haven't really been paying attention.
 
I have always wondered this myself. While i dont know for sure, what i've been pieceing together is... Old days it was 'easier' to produce, simply via less refining/processing thus cheeper price. But now days they can milk more gasoline from more of the crude via splitting/combining and other chemical processes., that they can see more return from other products. I think this plays into the 'value' of diesel...

Plus when you have such a monopoly does it matter ?

Yesterday, I was listening to the radio and they were talking to the 'one' guy (named bob) who actually set the price of gas. He said he might lower it at the end of the week :)
 
yager said:
I have always wondered this myself. While i dont know for sure, what i've been pieceing together is... Old days it was 'easier' to produce, simply via less refining/processing thus cheeper price. But now days they can milk more gasoline from more of the crude via splitting/combining and other chemical processes., that they can see more return from other products. I think this plays into the 'value' of diesel...

Plus when you have such a monopoly does it matter ?

Yesterday, I was listening to the radio and they were talking to the 'one' guy (named bob) who actually set the price of gas. He said he might lower it at the end of the week :)
Click to expand...

Where can we find the guy Bob? I'd like to give him a piece of my mind..... :mad:
 
NCJeeper said:
Where can we find the guy Bob? I'd like to give him a piece of my mind..... :mad:
Click to expand...

Sure ya can spare it? :flipoff2:
 
diesel

It depends on where you buy it. I bought fuel today for $2.85 at a Murphy/Wal- Mart station.(The Murphy station has consitently been lower since opening a year ago,) Their gas was $3.15. The Flying J in SC is $3.17 for diesel, they are normally the cheapest within 100 miles of my home.
 
Funny, Sunday coming back from Dixie run, I paid $2.99 for fuel, got home Sunday evening it was $3.49. Either it jumped up .50 in a few hours or there's something wrong with this picture.
 
It's cheaper near fayetteville.. was under $3 a gallon all over US1 on my way down and back from Rockingham...
 
Hell I went to Goldsboro last Friday night and the diesel ranged from 2.999 to 3.699 at the gas stations on US-70. Needless to say I stopped at the station that had it for 2.999. :mad: Its still tooooooooo high! :mad:
 
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