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"By-product" ?!?! What you calling by-product? Seeing as how diesel is priced higher than gasoline, gasoline is the by-product.
41collector
Member
Diesel went higher than gas about July of 2003. That is when I bought my diesel powered F350!
rog8732
US Veteran
My young son; who can be a pretty fair philosopher sometimes, posed the question some years ago when diesel fuel went higher priced than gasoline, here in the southeast.
"How can diesel fuel for trucks cost more than gasoline, when diesel fuel is what is burned in the trucks; that haul the gas here " ?
I esplainnnedded to him,our oil companies Do NOT gouge us on prices, cause I saw them all testify before congress to that fact; and the congress men said "OKAY, We believe you, ya'll get your jets fired up, get back on the job, and struggle on".
"How can diesel fuel for trucks cost more than gasoline, when diesel fuel is what is burned in the trucks; that haul the gas here " ?
I esplainnnedded to him,our oil companies Do NOT gouge us on prices, cause I saw them all testify before congress to that fact; and the congress men said "OKAY, We believe you, ya'll get your jets fired up, get back on the job, and struggle on".
Yeah, there are two reasons diesel is higher than gas.
1) The 2007 regulations that required that the sulfur content be <5PPM. This added a step to the refining cost PLUS created a need for additional additives that provide the lubricity of the missing sulfur without the particulate emissions of burning sulfur.
2) A DRAMATIC increase in the number of diesel vehicles being sold/driven. Nowadays everybody and his brother drives a 3/4 ton pickup with a V8 diesel in it. 20 years ago hardly anybody even wanted one. They almost couldn't give them away.
So they've made it more expensive to produce AND increased the demand. Of course the price - relative to other fuels - went way up....
1) The 2007 regulations that required that the sulfur content be <5PPM. This added a step to the refining cost PLUS created a need for additional additives that provide the lubricity of the missing sulfur without the particulate emissions of burning sulfur.
2) A DRAMATIC increase in the number of diesel vehicles being sold/driven. Nowadays everybody and his brother drives a 3/4 ton pickup with a V8 diesel in it. 20 years ago hardly anybody even wanted one. They almost couldn't give them away.
So they've made it more expensive to produce AND increased the demand. Of course the price - relative to other fuels - went way up....
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tom turner
US Veteran
And the states dramatically increased the tax rate on diesel vs. gas years ago too.
I worked in the oil industry for years. The statement that diesel is cheaper to refine is completely false. Main problem is the requirements for clean diesel. It is more difficult and expensive to remove the sulfur and contaminants than gasoline. Also, with modern refining some of the diesel stream ends up being broken down into gasoline.
The real joke is that the taxes on either fuel are considerably higher than the refineries profit. Like about 4 times higher. People complain about having the cheapest fuels of any of the developed countries.
Yes some third world countries have cheap gas, but they have a huge supply, low demand, low emission standards and their refineries high ggrae the easy product from the crude and run the heavies back into the bulk of thier crude going to places like the US
The real joke is that the taxes on either fuel are considerably higher than the refineries profit. Like about 4 times higher. People complain about having the cheapest fuels of any of the developed countries.
Yes some third world countries have cheap gas, but they have a huge supply, low demand, low emission standards and their refineries high ggrae the easy product from the crude and run the heavies back into the bulk of thier crude going to places like the US
I saw a sign like that today and just assumed it was in error....
Diesel has been about a buck more for the past 10 years...........
Betcha the big truck companies love it. BUT, they still haven't stopped charging the "mileage fees" because fuel is so expensive!!!
Diesel has been about a buck more for the past 10 years...........
Betcha the big truck companies love it. BUT, they still haven't stopped charging the "mileage fees" because fuel is so expensive!!!
LVSteve
Member
One reason for low-sulphur diesel is that you cannot make a high efficiency DI motor with high sulphur.
Diesel prices have been closer to gas prices out west for some time.
Diesel prices have been closer to gas prices out west for some time.
Calaveras Slim
US Veteran
I guess nothing if you drive a diesel;
Diesel fuel 25-cents less than regular.
Last month, I would have been shocked. Now, just surprised.
HEB gas station in Floresville, TX., unleaded and diesel are both $2.39
Arik
Member
Ripoff? I'll take that ripoff! Around here its $2.81 - $2.99
$2.339 around here, and that is up.
Arik
Member
Yes we do love it when we have to pay more and make less. The profits are just hand over fist. Lest not forget tho that we pay tax twice. Once at the pump and once more every 3 months for the fuel tax so that each state gets their fair share of us using their highway.
I'm just going to use the 1st Q of 2015 as an example. It was a slow quarter, we got rid of 2 trucks and bought 2 news ones. The time it takes to get them on the road obviously means we arnt driving, so that means less money spent on fuel. In this quarter we only drove 52,005k miles from Jan to March in that time we used 13,082 gallons of fuel with an avg of 3.98 miles to the gallon.
So let's stick with small numbers here. We drove through Idaho 220 miles and we DID NOT once get fuel there. Out of that 220 gallons divided by the avg 3.98 mile per gal we taxable 55.3 gallons. Our tax rate for Idaho is .2500 so despite not getting fuel in Idaho we still owe them $13.8 dollars.
Now it's going to get a bit more complicated. Some states like Indiana have a 2 taxes. One regular like I posted about Idaho and a surtax. So let's see what we have. In Indiana we drove 2995 miles and divided by our avg 3.98 mpg our taxable gallons come out to be 752.5. However we did get a total of 1002 gallons of fuel in Indiana which puts out taxable gallons at a -249.5. Multiply that by the tax rate of .1600 and that equals negative $39.90. That means Indiana owes us $39.90. But we are not done yet, there is still a surtax. This is simple. You take the taxable gallons of 752.5 and multiply it by a different tax rate of .1100 and we get $82.80 and the end result is we owe Indiana $42.90 dollars.
Nebraska we drove 7802 miles our taxable gallons were 1960 but we only filled up for 1008 gallons. The net taxable gallons is 952 x tax rate of .2560 and we owe an additional $243.70 dollars.
In the end of that slow quarter we still owed a total of $344.70 to the Department of Revenue Bureau of Motor and Alternative Fuel Taxes. In busy quarters we have paid as high as $800
You can drive from coast to coast, fill up in each state and only pay the tax one time....at the pump. We pay at the pump and then again after 3 months.
Dispite the fact that gas prices have gone down most states have increased the tax rate.
I'm not even going to start explaining how we go about getting loads.....for a company that doesn't haul it's own product. ....example Walmart, they haul their own
i thought the reason diesel was cheaper cause the were recycling french fry grease
TAIN'T So McGee!
TAIN'T So McGee!
The amount of diesel being used by pickups is a small fraction of the amount used by the long haul semis. (e.g. 75-100 GALLONS PER DAY each)
Bekeart
TAIN'T So McGee!
The amount of diesel being used by pickups is a small fraction of the amount used by the long haul semis. (e.g. 75-100 GALLONS PER DAY each)
Bekeart
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