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To: taxed2death

diesel is more expensive per gallon, because it contains more
energy per gallon


25 posted on 12/11/2007 8:31:06 AM PST by riored
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To: riored

“diesel is more expensive per gallon, because it contains more
energy per gallon”
__________________________________________________________

Yea, right.

Not.

Must be all the plutonium they’ve been adding to it lately.

Geeezzzzzzzzzz it used to be 2/3rds the cost of regular gasoline as recently as 4 years ago.

Maybe they should go back to the old ways and suck a bit of energy out of it.


29 posted on 12/11/2007 8:35:20 AM PST by taxed2death (A few billion here, a few trillion there...we're all friends right?)
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To: riored

That’s an appealing explanation, but it really isn’t what is driving the price.

Before the EU started converting all their cars to diesel, and before the PRC started slurping up diesel, I used to pay about $2.30/gal for gasoline, and about $0.80/gal for off-road diesel. Off road diesel used to be the “high sulphur” diesel that wasn’t permitted in on-road uses, even before the “ultra-low sulphur diesel” standard of today.

Besides not meeting on-road emissions standards, off-road diesel was not taxed (federal or state) and here in Nevada, those taxes add up to about $0.53/gal.

The on-road diesel prices used to be, oh, $0.30 to $0.50 less than gasoline, especially in winter, just before Christmas (like right now) because the refineries finished their build of home heating oil, there was usually a slight surplus, not much home heating oil is used around here, so that’s when we’d buy thousands of gallons of diesel at nice, cheap prices.

The demand picture for diesel has changed radically in the last five years, but most especially since Katrina and ultra-low sulphur diesel standards. Diesel went higher than gasoline at all times of the year, sometimes by as much as $0.80/gal, and it has never come back down again.


30 posted on 12/11/2007 8:37:23 AM PST by NVDave
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