Diesel prices here in Maryland are now 80 cents per gallon higher than regular gasoline. $3.499 per gallon for regular gas and $4.299 for diesel.
Both come from the same $120 a barrel crude.
Why are the oil companies punishing the trucking industry that passes their high diesel costs right on to consumer products, forces those of with diesel pushers to sit rather than travel and is causing many RV manufacturers and dealers to go belly up?
Hope somebody in the oil industry reads this and give some answers.
Capt. Bob & Pat (Alaska,Mexico, lower 48 & all of Canada)
Guard Dog, Curly the Cairn & Toby the Lahsa
Dutch Star DP 4097 2003
2005 Sport Trac
Datastorm Motosat (Locator #1974)(Internet & TV
"A moving target is harder to hit."
Ask any trucker about why diesel costs more than much-more-refined gasoline, and his face will turn red while his veins pop out on his neck. You'll have to walk away from the ranting, as it'll go on and on.
Yes, you rip-off, basking in the highest profits ever in U.S. history oil companies... DO TELL why that is?!?
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 have heard 2 theories on this. One is the oil industries realize that there is a group of smaller diesel cars and trucks coming to market (Honda, Dodge, Ford) and they want to keep a bad taste in consumers mouths concerning diesel prices to keep sales down as a diesel is more efficient and uses less fuel. The second is much heating oil (basically no. 2 diesel) has been bought up by many investments firms keeping prices artificially high. Example: the largest holder of heating oil in the New England states in Morgan Stanley.
I am tired of excuses such as low sulfer costs more to refine or winter blend costs more. BS! They may cost a little more but not this much!
Why are diesel fuel prices higher than gasoline prices?
Historically, the average price of diesel fuel has been lower than the average price of gasoline. However, this is not always the case. In some winters where the demand for distillate heating oil is high, the price of diesel fuel has risen above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the United States, putting more pressure on the tight global refining capacity. In the United States, the transition to ultra-low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.
A friend of mine had the fuel dealer drop a load of #2 "AG" deisel at his place ( for his tractors) and he paid $3.69 a gallon for it. I called the same placed and inquired about #2 HOME HEATING OIL ( and for those that dont know it...here its the EXACT SAME PRODUCT) and they quited me $3.98 a gallon.
After about 30 seconds of screaming into the telephone..asking WHY two different prices for the SAME ITEM....her answer was "thats just the way they price it is all" ( ???)) and I told her NO WAY...
She told me to hang on a sec..and I could hear her talking to some guy in the office ( ???) and she came back to me and said they would sell it to me for the same $3.69 a gallon!
Talk about TOTAL "BS". Same product...red dyed...no road tax..and THEY pay the same identical price for it...and yet they want to charge me over 30 cents MORE per gallon!.
Tomorrow I get about 400 gallons at the lower price!
2000 Country Coach Allure; Cummins ISC 330 HP; 71/2 - 8 MPG regardless
2002 Jeep Liberty
Why are diesel fuel prices higher than gasoline prices?
Historically, the average price of diesel fuel has been lower than the average price of gasoline. However, this is not always the case. In some winters where the demand for distillate heating oil is high, the price of diesel fuel has risen above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the United States, putting more pressure on the tight global refining capacity. In the United States, the transition to ultra-low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.
And that "tight refining capacity" is an artificialceiling. More refinerys can be constructed at any time...BUT...why should they? If they can make a "wad" of $$ with what they have...why invest multi millions in building a refinery to NOT get "wad times 2" in return.
Unless a refinery inside the USA is destroyed by some natural distaster..and I mean DESTROYED...we'll probably never see a new one built
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