Oil & Fuel Fuel Costs

[PaleFX]

Fuel prices set to soar... almost $1.50/L or $6/G this summer! so they are predicting...

And I still can't understand diesel being priced MORE than premium fuel!!!

Boggles the mind!!!

 

[smstonypoint]

Pardon my language (economics), but part of the price differential appears to be due to differences in demand elasticities -- the demand for diesel is less elastic than the demand for gasoline (i.e., diesel consumers appear to be less responsive to price than are gasoline consumers).

http://www.policyarchive.org/handle/10207/bitstreams/19355.pdf

Steve