Posted on 06/18/2009 5:48:33 AM PDT by FromLori
Edited on 06/18/2009 6:03:03 AM PDT by Admin Moderator. [history]
Diesel prices are rising again after having fallen below those of gasoline in recent weeks, piling more financial pressure on recession-stricken manufacturers and truckers.
Prices for crude oil and the gamut of petroleum products have been rising, in part because traders expect an economic recovery to boost demand and in part because fuels look like a good hedge against widely expected monetary inflation and a weak dollar.
(Excerpt) Read more at online.wsj.com ...
Don’t look now but diesel is now cheaper than unleaded regular.
As diesel fuel prices rise so shall food prices.
They are forever linked.
I have never understood why diesel is more expensive than gasoline. Is it not cheaper to make?
Growing up diesel was always less than half the cost of gas...what happened? I’ve read where diesel is refined and ready for market more that twice as fast as gas.
Not that I’m an advocate for price controls.
I've always heard that you get 8 more gallons of diesel from a barrel of crude oil than you do gasoline - because diesel doesn't require as much refining. Traditionally diesel was less than regular gasoline, but for the last few years it's been priced about the same as supreme grades. It has to be market forces (supply and demand) that made that happen. It's just within the last month or so that diesel has again dropped below the price of regular. As I own two diesels, I hope it stays that way!
Freight companies did not drop their freight rates when the price of diesel dropped last year. Now they want to continue to raise their freight rates.
People want to blame oil companies for the increased prices. They need to start pointing the finger at freight companies who have been operating with huge profit margins ad raising fuel surcharges all the while that diesel prices had been dropping.
From Wiki Answers - Every 42-US-gallon barrel of crude provides a little more than 44 gallons of petroleum products. This is gained due to processing of crude. From one barrel we get (in gallons):
7.27 gallons (27.5 liters): Other products (feedstocks for petrochemical plants, asphalt, bitumen, tar, etc.)
1.72 gallons (6.5 liters): Liquefied Petroleum Gases (LPG)
3.82 gallons (14.5 liters): Jet Fuel
1.76 gallons (6.6 liters): Heavy Fuel Oil (Residual)
1.75 gallons (6.6 liters): Other Distillates (Heating Oil)
9.21 gallons (35 liters): Diesel
19.15 gallons (72.5 liters): Gasoline
From petrochemical feedstocks many everyday-life products are then obtained. Some examples are:
fertilizers for agriculture
plastic toys and gadgets (bags, computer cases, etc.)
bubble gums
car tires
perfumes
petroleum jelly
ammonia
washing liquids
JMO, it started going up when they started building so many non-commercial diesel engines and they knew they could gouge. But it probably has to do with environmentalism and regulation, I’d have to look into it.
I think its b/c of the new enviro friendly ultra-low sulfur formula required by law. Its now more expensive to make....of course.
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