Future Price of Diesel

[smstonypoint]

There is a Shell station about 2 miles from the terminal - can't get closer than that. There is another shell station about 40 miles from the terminal. I know for a fact, that both stations get their gas from the same terminal. Would you believe that the station 40 miles away has gas $0.25/gallon cheaper!! How can that be with transportation costs? Shell dictates everything at the stations - they even tell the owners where to put the potato chips!

I can only speculate, but there may well be differences in overhead (property leasing/tax rates, wages, etc.) and local competition.

Steve

 

[nspec]

A 0.25/gallon difference times 1 million gallons is $250,000. That's an awfully big difference in rents!

The point of what I wrote, is that the fuel companies are charging what the market will bear. We just put up with it and keep buying fuel. It needs to stop. We obviously need to buy fuel, but we need to be as vocal about the blatant price fixing that is going on, as we were about getting rid of the Democrats at the last elections. We keep sitting back and taking it as if we have no other choice. I know my habits change when fuel prices go higher. I know my companies habits do as well. Why don't those lazy politicians we have call for some hearings on the matter? (yeah, right)

Wait until gasoline hits 4 bucks. You want to see the economy turn around real fast....

 

[rd_macgregor]

If I were to bet on it, I'd say the major difference in fuel price between N. Alberta and the US is taxes.
If the base (pre-tax) price is unjustifiably higher in Alberta than in the US market, then the US government would have grounds for protesting Canadian "dumping" of fuel on the US market...not that they would; that action is reserved for things the US produces in surplus (and, too often, inefficiently).

BOB

 

[LBrown59]

It used to be spring time was a good time to buy. Heating oil
Demands were winding down helping bump up supplies.
1* Now I'm not so sure. Any one thing could set the prices into a tail spin or skyrocketing. Of course the tailspin isn't very likely
.

1*This may have been so prior to the switch over from LSD to ULSD.

Another thing to consider....
2*In certain states you can get a rebate or tax credit for fuel bought with road taxes being used for agriculture use.
Check your states dept of revenue and get the forms.
3*Your second choice is a second tank and use home heating oil which does not have A road tax and is considerably cheaper.
4*It is missing a red dye used by DOT to make sure your not using it in on road vehicles,
5* but in a tractor would be legal.

2*That's never worked for me.
Even if it did I would be lending out my money interest free to the Government.
3*Since the switch over from LSD to ULSD there is now no difference between home heating oil and diesel in most areas.
4*A more accurate statement would be .
It contains a red dye used by DOT to make sure you are not using it on the road .
Has nothing to do with the type or kind of vehicle it's in nor the purpose it's being used for such as agricultural construction etc.
It's strictly a matter of the location of where the fuel is used.
5*It's legal in anything .
The issues is the location of use .

6*Normally, there is more diesel available in the Spring when the demand for heating oil goes down in the US .
Off road diesel in our part of the country is about $3.04 per US gallon right now

6*There is no difference between diesel and heating oil since the conversion from LSD to ULSD.

 

[harddock]

I received an email today with an idea to drop prices. We can't not buy fuel because we need it but if you were to not by from Exxon, and Mobil and this was done by a very large group they would notice the drop in business and lower prices. To be competitive the othe brands would follow suit. I don't know if this would work but it is something to consider.

 

[BethesdaEC]

I received an email today with an idea to drop prices. We can't not buy fuel because we need it but if you were to not by from Exxon, and Mobil and this was done by a very large group they would notice the drop in business and lower prices. To be competitive the othe brands would follow suit. I don't know if this would work but it is something to consider.

Fuel is literally a liquid commodity, those other stations would see a rise in demand, the would have to find additional fuel and may start a bidding war to ensure that they don't run out of fuel, there prices go up and you end up back at Exxon paying the same amount because they are cheaper.

 

[wstr75]

According to this link, home heating oil is not presently ULSD today, but it will be by 2016 in some areas.

 

[wstr75]

Correction: New York is slated to be ULSD in 2012, New Jersey in 2014 and the dates for other states are listed in the link.

 

[clemsonfor]

Wish it and gasoline would go to $5/gallon, to make idiots driving big monsters really sweat.

Ralph

Makes sense. Perfect sense, all your goods at the store will go up, you will have fuel surcharges added to every delivery charge you have. I am a forester and deal with loggers (point this out cause im familiar with it), the guys who own the company if they make good business deciaions live comfortaby, not rich but they work 60-80 hr weeks and have millions tied up in credit, so they deserve a pay out. My poin is in this hard economy the margins are already tough and you add a 20-30% increase to a have to have item like on read fuel and off road they will go under. You can not soak that up, thats straight off the profit margin, the mills will eventually respond by giving more money on the stump, but trust me it laggs. Each loger will have about 3 big truck (tractor trucks or 18 wheelers to the lay folks) per crew that use something like $500 every other day in onroad fuel. Make longer diliveries that goes up, and then they use about 100gallons of offroad fuel/day as well. My point is its nothing to have a $5K fuel bill in a week for a larger operation. I agree there are the little man sindrome people that drive huge gass guzzlers but this is no way to solve the problem.

Also think of the construcktion guys who have to have a 3/4-1 ton truck to tow equipment like backhoes and lumber to jobs, they cant help that the trucks only get 10mpg now a days. Nothing wil stiffle a recovering economy quicker than this!!

 

[Jeff Lary]

in Maine 2 weeks ago i paid $3.65 gotta love it