get ready for very expensive diesel

[davkir]

I don't claim to have any special knowledge about this, but there was an interesting column in Car and Driver this month (April) about diesel.
It claims that most european refineries use a hydrocracking which produces about 25% gasoline and 25% diesel. Most US refineries use catalytic cracking which produces 50% gasoline and 15% diesel.
The rest is turned into other products.
They claim that Europe has to export their excess gasoline to the US.
I thought the column was very interesting.

 

[Runner]

In my daily commute, I see office workers, etc., driving alone to work in pickups and cars that get 15 mpg. If that's how they want to spend their money, I say "fine" but this is why we're in the situation we're in. If most people chose vehicles that got reasonable gas mileage, the demand would lower and prices would come down for all.

I'm a realist and the reality is that I do not now, nor will I EVER have any individual control over gas prices. Therefore, my daily driver gets 40 mpg. It is comfortable, quiet, safe, reliable, easy to park, seats four comfortably and has reasonable luggage space for most situations. Granted, some people NEED a ride that can haul more cargo or people and, for them, do what you need to do.


This is my way of telling the oil companies to stick it in their ear.

 

[Kyle_in_Tex]

In my daily commute, I see office workers, etc., driving alone to work in pickups and cars that get 15 mpg. If that's how they want to spend their money, I say "fine" but this is why we're in the situation we're in. If most people chose vehicles that got reasonable gas mileage, the demand would lower and prices would come down for all.

Agreed....I see the same. When the price gets high enough, they'll be more able to quantify the actual cost of a 2nd car to save gas.

 

[norgeman]

Do you think it makes sense to purchase fuel now and stock up or wait till later in the spring. I am wondering because of the effect of using diesel winter fuel in the summer. Right now my fuel cost for diesel is right aroubd 1.70 a gallon.

 

[Roady]

Alot of talk here about supply and demand. I don't really agree that the run up on oil has been because of that. Oil stock piles in the US are way above the levels they were at even when the price was 30 dollars a barrel. Prices are now solely being driven by speculation. It seems even if someone like Venezuelan President Hugo Chavez farts at the wrong time, oil jumps. Forcasters predict a heavy hurricane season in the gulf? - That's a jump. Iran won't stop making nukes? You get the idea. The supply or demand does not change, investors are simply dumping money into oil as soon as ANY sort of news comes out that MIGHT affect oil. OPEC use to have the ability to control prices to a certian degree but not now. They are pumping plenty of oil into the market and like I said, inventories are high but it does not matter. The weak dollar does not help either. Oil has become a safe place to dump your money. It's a nasty cycle that's getting out of control. As far as the oil companies, they are just reaping the benefit of out of control investors.

Roady

 

[tomd999]

Hiya,

I'm going on memory here so don't shoot me if I have the dates or #'s a little off. But here goes.

Maybe the reason Diesel is around 60 cents more per gallon is that back around '93 or so the Clinton administration signed into law a new fuel usage tax scale for Diesel. I remember the price of Diesel jumping 15 cents the day the law took effect. If I remember correctly the tax was to be phased in over 5 years with a total tax difference between gasoline and Diesel at 50 cents per gallon after it was rolled out.

Before the tax rate change, I was buying Diesel about 6 to 8 cents less than regular unleaded, after the rate change it would run in between plus and super. Now with the mandated ULSD, the costs are up on the production side and therefor, higher pump prices.

Tom

 

[NewToy]

Maybe we'll wake up here in the US and instead of the new 300+ HP "must have" cars coming out every year we will shoot for economy. In the interim I keep buying Exxon and Nexen stock.

John

 

[WTA]

Here is my answer for the ridiculous gas prices.

All we own are diesels here and the horses. A gas powered car or truck wouldn't last a year in this country. The diesel prices are hurting bad and I ride my horse to town as often as I can. I have a nice little protest sign that I hang on the back of my saddle too. It says buy grass not gas!

Real soon I'm going to start making the 30 mile trip to fedex with a load of packages once a week too. Since they won't pickup here. That's 30 miles one way! It's cheaper feeding my horse than feeding my truck. While I'm riding down the side of the highway I'll make real sure everybody can see my sign!

 

[Kendrick]

I have an audi A6. Its got a gasoline 2.4 litre V6. It is a relatively new car but the resale value of it is now hopeless beacuse it "only" gets 30mpg....

hahaha my geo gets better then that and its 13 years old

 

[KICK]

hahaha my geo gets better then that and its 13 years old

I had people laff at me when I picked up a used Hyundai Accent 3 years ago, gas was about 2 bucks a gallon then... car gets between 35 and 40 mpg....and I paid 800 dollars for it.... Laff all you want, turn the clock forward 3 years and it starts to look alot better.