Why doesn't desiel fuel cost drop like gas?

[wish2fish]

I did a search and didn't see anthing that looked like this was discussed before.

Why doesn't desiel fuel price drop like gas? I thought it was a by product of making gas so there should be an adequate supply of desiel.

 

[Go Aweigh2452]

I did a search and didn't see anthing that looked like this was discussed before.

Why doesn't desiel fuel price drop like gas? I thought it was a by product of making gas so there should be an adequate supply of desiel.

Its mostly related to supply and demand. Most of the products travel by truck and they are a dependable source of consistent consumers so there is little cut back on driving that can happen unlike us gas consumers who have cut back on our driving. If truckers in particular could cut back their delivery's you'd see a price drop. The only drop you'll see is fuel station competition for your money as the price of a barrel of fuel drops....

 

[PMvdb395DA]

Yep, the demand for diesel stays normal....
Also here in Europe.

Peter

 

[Daryl]

Wish2fish, diesel is not a by product of gasoline. Both come from components originating primarily from crude oil. However due to recent increases in demand for diesel outside the US, we expect diesel to continue carrying a higher value than gasoline. The problem will only get worse as Europe goes to ultra low sulfur diesel and the 15%-20% they currently get from Russia cannot meet the specifications. Sorry Peter but get ready for your prices to increase. There was an article in the Wall Street Journal earlier this week about Europe's push to diesel and the unexpected results. By the way, I drive a diesel truck for personal use and I feel the pain.

 

[sbw1]

Diesel is the fuel of choice and has been for years in Europe and China. China's GDP is slowing down. This year it is forecasted to be "only" 8% growth over the base year. That's a lot of growing demand for a product who's supply is not increasing at the same rate as demand. The recession will dampen prices until the recovery begins. Then, given likey US energy policies the Dems will work their magic and prices will rise again.

 

[Sea Gull]

Don't overlook home heating oil as another reason for the price of diesel to increase (or at least decrease more slowly) at this time of year.

 

[Henry Boyd]

You also have to realize the 'diesel' is the name that is applied to the product when it is used in a diesel engine. That can be in a trucks, rail locomotives and ships. Heating oil, the stuff that is used to heat buildings and run utility company generators is the same stuff.

Gasoline on the other hand is a pretty monolithic product, it is for internal combustion engines and that's about it. Since the internal combustion engines are mostly in cars, and cars in the most part are operated by consumers, there is a lot of voluntary consumption of gasoline, leading to greater swings in demand levels.

I may reduce the hours I operate my Sea Ray, and double up on errands when gas gets to $ 3.50 a gallon, but I still have to heat my house and have the electricity on at the office regardless of the cost.

Henry

 

[lorenbennett]

It also has to do with the ultra low sulfer that has added another step in the production, o and did I mention does not lubricate as well so I add a lubricant with each tank full. Know it was originally stated to add .05 per gallon but it is higher. Here is the web site.
http://www.eia.doe.gov/oiaf/servicerpt/ulsd/chapter7.html:thumbsup: