Duramax and diesel prices

[Tdog]

OK, here are some data from the US DOE I found by googling diesel & gas prices. August 1, 2005, average retail price for regular gas [nation wide]: 223.9; ditto for diesel: 234.8. I make that to be about a 11 cents difference.

Now, after Rita & Katrina, the prices begin to act loony. The 1st week after Katrina, gas = 303.7 & diesel = 289.8 - - diesel is almost 14 cents cheaper. By the end of September, gas & diesel are with 3 cents of each other, 276.7 & 279.8. But the latest data entry, October 17, shows gas has dropped to 269.3, while diesel has jumped to 314.8. That’s where we are now, with diesel 45 cents a gallon more expensive.

Soooo, what’s the explanation? Why the differential between gas & diesel?

The impact on me is not great - - my BX is my only diesel engine. It doesn’t use much fuel; however, I am using it a lot - - probably 100 hours since Katrina. I’m noticing the difference.

Disclaimer: those who are tired of reading about the price of diesel should read other threads.

Jack

 

[gsxr1100]

you can read all you want but the oil companies can & do what they want and people still pay. That is the great thing about fuel, they got you!

you are right though, I should retire from this thread since it is becoming dead issue. It is turning into another complaining on diesel prices again; which gets nowhere and gains nothing, unless you can change it.

But in the end, people will keep buying the fuels and nothing will change. /forums/images/graemlins/grin.gif

 

[jcmseven]

Well, seems like the discussion has gotten a little heated at some points, and I am not sure what I can add, but here goes...I really enjoy my diesel pickup. When I bought it, I did not do so for fuel economy alone. Especially in larger trucks that pull heavy loads, diesel offers a level of performance and durability that is tough to duplicate with gasoline. But, as engineering gets better and competition grows among manufacturers, the gaps are getting smaller. My father, before he retired, worked as a regional sales manager for a large oil producer. His job was the one of determining supply shifts and instituting pricing changes for a large chunk of our state, based on the corporate office's adjustments. He was perfect for the job, as he was polite but did not apologize for pricing changes, etc. He viewed pricing changes as "on a continuem" meaning that in the big scheme, diesel prices will change as will gasoline, etc. He also said that frequently, pricing changes were as a result of production shifts, not necessarily supply and demand. Now that he is retired, he still consults 1-2 days per week for our regional distributor, and has found that fuel price peak is consistent with earlier trends (before the hurricaine); it was an expected occurence by the fuel watch organizations; that it will moderate and begin to recede, and that fuel purchase is still stable, despite the uncertainty. So in short, it will get better. Now for the specific issue at hand: if a diesel meets your needs and you plan on keeping your truck for a long period of time, or you use it a lot at higher capacity, then diesel in my mind is still the way to go. Although important in today's economy, with diesels planning for three-four or more years for now is more applicable than planning for today (although it is hard to do this). I would get the diesel if it fits in the budget and you want it, because realistically and based on market trends the cost of diesel will likely go down (but probably not before fuel oil season is over).

John M

 

[dmccarty]

jcmseven,

The prices are falling here in NC. The high for diesel I paid was 3.29. It then dropped to 3.25 and then 3.19. This is all at the station I buy. Usually diesel follows the 87 octane gas prices. Lately is been at the 92 octane price.

There was a blurb in the WSJ that said there was a shortage on the distitllate that is used to make diesel and I think fuel oil. I can't find the article.... I wanted to reread it but it somwhere. /forums/images/graemlins/grin.gif

The station I buy at has been high on gas prices for some reasons. The station across the street is higher. One is Exxon and the other is Mobil. Don't get why one is .5-.10 more expensive. Usually the station I use has the best prices but he has been higher lately. Last week another station had gas at 2.79, 2.89 and 299. I think my station is at that level today but diesel was still at 3.19.

I pass another place that sells diesel. He usually is much higher than the place I buy. I have seen this place selling diesel for 3.42. Today he was 2.99. Before the storms I paid 2.69 and 2.79. Maybe we will see those prices soon. /forums/images/graemlins/blush.gif

Later,
Dan

 

[RedDog]

$2.41 for 87 octane/ $3.44 for diesel in my city today. /forums/images/graemlins/mad.gif

I may be wrong, but I get the feeling some people think they are getting a bargain when buying at or around $2.25 a gallon for gas or diesel. /forums/images/graemlins/crazy.gif

RedDog

 

[gsxr1100]

I would rather pay 2.37 per gallon for gas then over 3 per gallon for diesel.

Bargin no, lesser cost, yes.

 

[rback33]

I wish I could give you all the specifics, but in Sunday or Mondays Kansas City Star there was a great article about the fuel and gas prices. As someone just mentioned, it's about production. This time of year the refineries shift the production more towards fuel oil and other things and reduce diesel production. Here in Kansas I am paying over a dollar more a gallon to fuel my Powerstroke F-350, and am STILL coming out better than if I had a gasser. It sucks, but then again that's why I drive an ugly, brown, 89 Olds most of the time and leave the biggun at home. Come spring we should see a shift back the other way.

 

[gsxr1100]

I agree it is supply and demand; but, diesel has been more then our premium gas around here for OVER 3 years. Really spring (March) of 2002 here since I got rid of my powerchoke for this very reason. I was paying 1.89 per gallon then and that was a lot. So since then fuel has risen only about $1 and that is not to bad.

Yup you are coming out a head with a diesel truck then a gas truck (in your situation) but you are eating you savings up by having the spare car.

 

[Dargo]

Something is screwy with diesel prices, and I don't like it. Almost everytime my Cummins moves it is pulling 6 to 8 tons. I drove the V10 offerings as well as the various new big blocks in gas. Talk about very disappointing!!

I've had a Ford, Chevy and finally a Cummins in a Dodge. In my actual experience, the Chevy was okay, the Ford better, but I've found my winner with the Cummins. I'm at the mercy of the diesel prices because nothing else is going to do what I need done.

 

[gsxr1100]

</font><font color="blue" class="small">( Something is screwy with diesel prices, and I don't like it. Almost everytime my Cummins moves it is pulling 6 to 8 tons. I drove the V10 offerings as well as the various new big blocks in gas. Talk about very disappointing!!

I've had a Ford, Chevy and finally a Cummins in a Dodge. In my actual experience, the Chevy was okay, the Ford better, but I've found my winner with the Cummins. I'm at the mercy of the diesel prices because nothing else is going to do what I need done. )</font>

Well dargo, I can see you do not use Rotella here. If you did you could save millions! Millions I say. Liquid Gold here.
/forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

For me diesel has been high (higher then 92 gas) for years; Really since March 2002 it was $1.85 per gal and gas was 1.45.

Then again, I do not own a diesel anymore since it cost to much to drive back then...Opps, I am sure I will get in trouble for that. Then again, I could care less on fuel prices. I debit card the fuel and keep moving..