Its all very simple. There is a higher demand for diesel, as compared to gas. Why do you think we are buying gas from Europe??? Because their refineries are setup for a disproportionate supply of gas compared to diesel. They are selling gas to us somewhat cheaply because THEY HAVE AN EXCESS OF GAS. They are trying to sell off the excess, so it is driving the gas price down. If the world refining process was set up to match the market, gas prices would be nearly as high as diesel.
To go after big oil will only result in that punishment being passed on to the consumer. You can't bite the hand that feeds you. Creating an excess supply is the only way to drive prices down. Nothing else will work.
* This post was
edited 08/19/08 04:55pm by Daveinet *
Dave
FMCA F298817
'83 Revcon Prince 31' FWD
502 w/Howell/Edelbrock MPFI, Thorley's & Magnaflows,
Koni FSD, Class A built for gear heads My Revcon Website Revconeers Forum
Soon, an honest person will not be able to sing the last 2 lines of our National Anthem
Let's see if we can do the math the government way: tax per gal is $.06 more on diesel so the price difference is $.80 + more per gal.
Makes perfect sense.
As has been said - 'cause they can and there is nothing much we will do about it - just were is the anger???? Seems like all are just accepting it - price is inching down but went up like a rocket - still $3.00 more than it should be IMHO.
1987 36' Beaver Marquis High Tech Wide body
3208T CAT, MT643 Allison in a Gillig MHA
Koni's & Toyo all around
FMCA, Good Sam
The law of supply and demand is still at work. In addition to a more sharply increasing world wide usage of diesel fuel (demand), there is also something helping the supply side for gas. It's something that a lot of people like to knock, but it has a real affect on the supply of gas. It's ethanol!!!! Many states are using 10% in their gasoline----which means close to 10% (maybe really 8% when BTU content is factored in) less gas being used.
If there were large supplies of bio-diesel available and being used, the price of diesel might well come down also.
Mark
2000 Itasca Suncruiser 35U on a Ford chassis
2003 Ford Explorer toad with US Gear brakes,
ReadyBrute tow bar, and Demco base plate.
''Supply and demand'' should be officially renamed: ''Supply and GOUGE''
FMCA# F355513. 40 foot, one slide, Cat powered Magnum Blue Max chassis, PAC brake PRXB, Allison MD3060, Aqua-Hot, 7.5 KW Quiet Diesel, Howard PCS, Velvet Ride suspension. 2006 Jeep Commander attached via a Blue Ox Aventa II; stopped with a Brake Buddy.
I'm not a chemical or refining engineer but I've been told that out of a barrell of crude oil, many cuts of distillate and grades can be obtained. But only within a certain band range of processing. Meaning you can't get all gasoline or all diesel or all bunker fuels out of the barrel. At various processing pressures and temperatures (cracking points), various petroleum products are direvied. Diesel has it's cracking band limits, and gasoline has it's band limits as well. Some times these cracking band limits lap over one another and will allow a degree of blending to take place, but there are limits for gasoline and diesel recipes, with respect to octane, flash points, wax, viscousity, etc. So really, only so much diesel can be produced out of the barrel of crude oil. I believe much more gasoline can be obtained as compared to diesel. Also the world demand now for diesel is much more in demand than gasoline,based on availability, especially overseas. All of these factors, plus taxes levied on the fuel, contributes to the seemingly outragious prices we are paying at the pump. I can only be grateful that I don't live in most other countries where the diesel cost is much, much more that here in the U.S. It has been, and probably always will be "world supply vs. world demand". Diesel production is just not as plentiful as gasoline world wide. As I see it, for the last 40-50 years, we in the U.S. have most fortunite to have diesel as cheap as it was. It's only been in last 4 yrs or so that we now paying what the rest of the world has had to pay, more or less.
I don't like the high cost either, but demand is high, and until demand starts dropping, the costs will keep pace. I know my RV'ing is being cut back to a degree because of the diesel cost. TMTCW Hope to see ya down the road.
Skip & Susie
06 Challenger 5er, 32 ft, 29RLS
03 Silverado, 2500HD, Duramax/Allison, lg bed, crew cab, 4x4
Yamaha 2400SEi gen
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