buickanddeere
Super Member
Why is it that when I point out you make a glaring mistake (like say I haven't posted something I have) you try to reverse it?
Your "theory" is wrong, and before you even stated it, I disproved it (you didn't read that either, evidently)....I countered what I knew you were going to say with actual facts, not wild theories.
You're saying diesel prices will stay high because refineries want to make more money, regardless of their cost to produce. That's a ridiculous statement considering what we've seen the last few months. We have proof, not wild theories, in the recent few months. Gas prices have been slashed nearly in half because their cost to produce dropped significantly. If your theory was valid, they wouldn't have lowered their prices, but they did.
Taxes are the big difference in price between gas and diesel? Are you sure of that? Do you even know what the tax differences are between the two? Approximately $.06 per gallon....that's it. Proof:
Motor Fuel Taxes
The refineries upgrades were paid off between 2009 and 2011? Oh wait, that's according to a model you claim, not actual proof, or facts. Funny, but ULSD wasn't finished being implemented until 2010, so how did they pay it off before, or immediately after making those changes? Don't bother trying, you can't answer that.
Diesel demand has been lower in the U.S. than in the rest of the world for a long time, so the rest of the world subsidized the upgrades needed for ULSD faster. Since 2004 the demand for diesel has grown roughly 30% in the U.S., but production has only increased about 15%. We call that economics....supply and demand. The refineries have had high demand, and increased operating expenses....those both lead to higher costs, but only temporarily. When they catch up to demand, and finish paying off the upgrades, diesel will be back to being lower than gasoline, just like it is in the rest of the world. We may not be on the same timeline as the rest of the world, but our math isn't any different than theirs, so the same thing will happen. Some light reading if you want some actual facts:
https://blog.gasbuddy.com/posts/Why-diesel-costs-more/1715-485481-832.aspx
A diesel Cruze costs less to purchase. Fuel costs will vary with the price of the fuel. Future service costs are still undetermined....we'll only know that after they get some years on them, but folks who actually understand modern DI engines have pointed out all the extra stuff on them that would be bad on a tractor, so it's still a pretty weak comparison.
The funny thing is that you're talking about light duty vehicle, and you may be one of the few people who think that applies to tractors. When I'm doing something as boring as mowing I'm running my tractor for hours and hours at PTO speed....not even remotely similar to how a true light duty work cycle would be.
Maybe you putter around with your machines, I do work with mine.
How is it that diesel prices at the pump have not fallen as low and as fast as gasoline prices as crude oil dropped.
The Cruze diesel is more expensive to purchase than the gas.
Even a low hour useage machine such as a CUT will use less $$$ per hour on gasoline than diesel . Due to gasoline being cheaper per btu at the pump than diesel. The DI gas also has much higher thermal efficiency that a carburated gas and now nearly matches the diesel's power out per btu in.