[Tilted Irish Kilt]

Since Diesel is more dense, holds more energy than gasoline in weight, and requires less refining, then why does it cost 10%-15 % more at the pump ?
Is it strictly the amount of Road Taxes ?

[BobL]

“Is it strictly the amount of Road Taxes ?”

No, it was getting the particulates out of the fuel (low sulfur), as in “clean diesel”. They have done that, but it’s adding at least 50 cents per gallon to the cost.

[Boiler Plate]

Exactly because it is more energy dense. In the end you are buying BTU’s and there are more BTU’s in Diesel than Gasoline. Also there is less Diesel in a barrel of fuel, there are more uses for diesel (ie home heating oil) and unlike gasoline which can be made by cracking diesel and other distillates found in a barrel of crude oil, the amount of diesel in a barrel can not be changed.

[Gandalf_The_Gray]

Since Diesel is more dense, holds more energy than gasoline in weight, and requires less refining, then why does it cost 10%-15 % more at the pump ?

Is it strictly the amount of Road Taxes ?

I noticed a "bump" in Diesel prices when refiners introduced the "low sulfur" product. I would imagine that there may be low sulfur (sweet) crude but just like low sulfur coal there isn't enough to satisfy demand. That would lead to additional processing at the refinery to reduce/remove sulfur from the product. Refining crude oil often involves catalytic processing with precious metals like platinum.

Prior to the low sulfur product, Diesel was close to a dollar less than gasoline. Of course both were subject to road taxes. At that time I was heating my house with "heating oil" which was #2 Diesel dyed red to indicate "for off-road use only". My last oil fill was $680 for 168 gallons with out the road tax. That's $4.05 a gallon when gasoline was in the $3 range w/ tax included. I called the jobber and asked "why so high" and he said "special handling". I switched over to natural gas heat, the savings paid for the new boiler in three years.

Take your pick, it could be caused by legitimate processing costs or rapacious greed. Maybe a little of each...

Regards,
GtG

[thackney]

The simple refining ended with the EPA ultra low sulfur diesel requirements. Even the most sweet crude requires hydro treater and the like. Simple cut of the topping plant cannot be sold in the US.

[thackney]

Also I forgot to include you get more BTUs, more energy per gallon with diesel so it helps justify the price. You can travel the same miles for less gallons with diesel over gasoline.

[nascarnation]

Why shouldn’t you pay more for more btus?

[OneWingedShark]

Since Diesel is more dense, holds more energy than gasoline in weight, and requires less refining, then why does it cost 10%-15 % more at the pump ?

Diesel used to always be cheaper than gasoline, it wasn't until the mandatory ultra-low sulfur regulations that it became more expensive. I, personally, believe that the reason the price has not gone down (as their filtering has been paid for) is because it's now "normalized" as more expensive [in minds] than gasoline...

That said, if they were to increase the price of diesel-fuel by a dollar, I'm fairly sure our domestic shipping industry would collapse. -- and just imagine the ways they could "never let a crisis go to waste" if that were to happen.