Can someone enlighten me on the continuing price spread??? - Diesel Forum

S95 · 05-13-2008, 05:45 PM

Usually by this time of year the oil companies have run out of excuses to hold diesel at hostage prices over and above gasoline. the heating season is well past and we still see diesel well above gas. typically in my area it should now be even or below gas. currently still more than .10 / liter more.

Anyone know the latest reason or excuse for this?

phillbo · 05-13-2008, 09:02 PM

2 reasons.... you pay the price and because they can.

**SteveRacer** · 05-13-2008, 09:28 PM

What phillbo said.

The "official" excuse is that because of the new ultra-low sulphur mandates for diesel, refineries claim the extra steps to acheive the purity makes the cost of producing diesel well in excess of what it costs to make gasoline.

There is *some* truth in this; but 50 cents a gallon here in the states seems excessive.

It's well known that a lot of folks that use on-road diesel have to because it's a commercial vehicle and their living depends on it.

Have you priced an airline ticket lately?? Can't fly a 777 on ethanol or WVO.

-steve

MOUNTAINMAN444 · 05-13-2008, 09:37 PM

I don't have a clue. We just had this discussion at work today and no one could come up with a good answer. 70 cents a gallon (20%) more than regular is ridiculous, if you ask me. I thought it had started down about 2 weeks ago and then the price per barrel of oil started jumping again and the few cents it had come down disappeared and up it went. Back to my original statement, I don't have a clue. 3.49 today.
Joe

phillbo · 05-13-2008, 09:59 PM

Quote:

Originally Posted by SteveRacer

Have you priced an airline ticket lately??

Yes.. I'm planning for Oshkosh in July and was looking at flights tonight...

The sad part is, I better book soon because they will go up again for sure !

mjstef · 05-13-2008, 11:28 PM

Quote:

Originally Posted by phillbo

Yes.. I'm planning for Oshkosh in July and was looking at flights tonight...

The sad part is, I better book soon because they will go up again for sure !

Take the accord and drive. Should only take you a day and a half...........

roofeditor · 05-14-2008, 05:58 AM

Quote:

Originally Posted by SteveRacer

What phillbo said.

The "official" excuse is that because of the new ultra-low sulphur mandates for diesel, refineries claim the extra steps to acheive the purity makes the cost of producing diesel well in excess of what it costs to make gasoline.

There is *some* truth in this; but 50 cents a gallon here in the states seems excessive.

It's well known that a lot of folks that use on-road diesel have to because it's a commercial vehicle and their living depends on it.

Have you priced an airline ticket lately?? Can't fly a 777 on ethanol or WVO.

-steve

Fly a 777 on ethanol or WVO but you have to do a lot of mods to do so and it's not price smart.

montanafan · 05-15-2008, 08:31 AM

As a recently retired refinery operator, I can tell you that ULSD is still cheaper to produce than regular gasoline. It did not add all that much to the production cost of Diesel. Of course, it did cost a bundle to build the process units required. $180 million in our case, but the cost will be recovered fairly quickly.
Oil execs are calling this "a Diesel economy", which means they can charge about whatever they want to, and we are stuck with it. Too many people can not stop using (or even curtail the use of) Diesel.
The fair cost of Diesel would be about the same as regular gasoline because the refinery can make either gas or Diesel from most of the same feedstock.

brotherxb · 05-15-2008, 08:46 AM

I have a freind that work's at Shell Dearpark in Houston and he say's the same it's should be prices about the same as regular gas or a little cheaper.

roofeditor · 05-15-2008, 04:15 PM

Quote:

Originally Posted by brotherxb

I have a Friend that work's at Shell Dear park in Houston and he says the same it's should be prices about the same as regular gas or a little cheaper.

Diesel is priced 30% over what it should be and crude is about 25% over what it should be. Speculation is driving the FUTURES price nuts, BUT the gas companies are umping on the 6 month future price NOW. sort of a two for.

I would disclose that I am a partner in US energy in the Platinum Partners (me being a platinum partner) group, and the price WE are getting from the ground is noware near $125. We started drilling gas and oil wells about 2 years ago and 80% are now on line now. BTW the investment is 100% a deduction and all monthly royalties are tax free. Good deal so far. BUT trust me the $125 is not what the guys in the front lines are getting.

George C · 05-15-2008, 05:15 PM

I think a lot of what you guys are seeing is the rising prices being changed at different times. It seems that fuel has rizzzed about .30 cents this past week or so, and each gas station raises them .05-.10 cents at a time. So, one changes at 9:00am, while another may wait until night time.

lone_star_dsl · 05-15-2008, 10:15 PM

I went by the local Shell station yesterday and saw gasoline for $3.68 and diesel for $4.04

Went by the same station today and gasoline was $3.70 and diesel was $4.29! Two cents for gasoline and 25 cents for diesel, overnight?!? Give me a break!

$100 only got me 23 gallons, little over half a tank!

Rookie · 05-16-2008, 09:32 AM

A Standard station I pass was $4.29 on Monday, $4.49 Wednesday and now it's up to $4.69. I'm thinking $5 by June at this rate.

05-13-2008, 05:45 PM	#1 (permalink)
S95 Senior Member Join Date: Apr 2004 Location: Ontario, Canada Posts: 638 iTrader: (0) My Photos: (0)	Can someone enlighten me on the continuing price spread??? Usually by this time of year the oil companies have run out of excuses to hold diesel at hostage prices over and above gasoline. the heating season is well past and we still see diesel well above gas. typically in my area it should now be even or below gas. currently still more than .10 / liter more. Anyone know the latest reason or excuse for this? __________________ 1995 F-250 PSD 4X4 EXTRACAB LONG BOX AUTO TYMAR FILTER, 4" MBRP STAINLESS TURBO TO TAIL EOT MOD FOR COLD STARTS CUSTOM RUNNING BOARDS EOT MOD : xxx.thedwilsons.com/powerstroke/PSDhome.html

05-13-2008, 09:02 PM	#2 (permalink)
phillbo Senior Member Join Date: Jul 2000 Location: 3rd stone from the sun Posts: 3,366 iTrader: (0) My Photos: (7)	2 reasons.... you pay the price and because they can. __________________ 2006 F-250 XLT FX4 CC 6.DOH

05-13-2008, 09:28 PM	#3 (permalink)
SteveRacer Lifetime Supporting Member Join Date: Feb 2002 Location: Rockland Co. NY KC2JLJ on 147.165 MHz Design Engineering Machine Shop Owner Posts: 1,590 iTrader: (0) My Photos: (0)	What phillbo said. The "official" excuse is that because of the new ultra-low sulphur mandates for diesel, refineries claim the extra steps to acheive the purity makes the cost of producing diesel well in excess of what it costs to make gasoline. There is some truth in this; but 50 cents a gallon here in the states seems excessive. It's well known that a lot of folks that use on-road diesel have to because it's a commercial vehicle and their living depends on it. Have you priced an airline ticket lately?? Can't fly a 777 on ethanol or WVO. -steve __________________ S.A McChesney ================================================== ======= '72 BMW 2002tii Fprod Race Car --- '82 Bitter SC 5-spd '01 Volvo V70 T5 5spd, The Official SCCA Volvo Historic Racing Series Pace Car '95 EB 351 Bronco --- '69 Lotus Europa --- '87 Merkur XR4ti --- '85 Bitter SC 3.9</font> '02 F350 Lariat CC Dually Longbed PSD 4x4 6spd Tekonsha Prodigy -- Icom 2100H -- Retrax -- B&W Turnover 5er Kingpin -- Letter to Santa "US Gear" . . . 32' invert 5er Britton/Transport Sys 12K GVWR Toybox,Honda 3kw Gen,Fridge,Micro,5kw Inverter,ColemanPolarCub __________________________________________________ _______________________ Foglights on with High Beams '02-'08 Superdutys

05-13-2008, 09:37 PM	#4 (permalink)
MOUNTAINMAN444 Senior Member Join Date: Apr 2005 Location: N. Georgia Posts: 1,341 iTrader: (0) My Photos: (0)	I don't have a clue. We just had this discussion at work today and no one could come up with a good answer. 70 cents a gallon (20%) more than regular is ridiculous, if you ask me. I thought it had started down about 2 weeks ago and then the price per barrel of oil started jumping again and the few cents it had come down disappeared and up it went. Back to my original statement, I don't have a clue. 3.49 today. Joe __________________ 2002 F350, Crew Cab, 4WD, ISSOPRO Gauges, 3.73, Auto, 2wd low range mod, No door dinger, Interior lights off switch, Zoodad Mod, Extra Trans Cooler, Before coolers trans fltr, Coolant fltr, Crimestopper remote start/alarm Oil Guard Bypass, Air horns

05-15-2008, 08:31 AM	#8 (permalink)
montanafan Senior Member Join Date: Apr 2003 Location: South Central Montana Posts: 2,046 iTrader: (0) My Photos: (0)	As a recently retired refinery operator, I can tell you that ULSD is still cheaper to produce than regular gasoline. It did not add all that much to the production cost of Diesel. Of course, it did cost a bundle to build the process units required. $180 million in our case, but the cost will be recovered fairly quickly. Oil execs are calling this "a Diesel economy", which means they can charge about whatever they want to, and we are stuck with it. Too many people can not stop using (or even curtail the use of) Diesel. The fair cost of Diesel would be about the same as regular gasoline because the refinery can make either gas or Diesel from most of the same feedstock. __________________ 2003 KR F-250 4X4 CC SWB, 6.0, 5 Speed Auto, 3.73 Axle, no Limited slip. Rhino bedliner, Unicover bed cover. Built on February 19, '03 #2 93 F-150 XLT, 5 Liter, Auto, 4X4, X Cab. 230,000 miles. Uses no oil between changes.

Remove Advertisements Sponsored Links
Diesel Forum - The Diesel Stop.com Advertisement

05-15-2008, 08:46 AM	#9 (permalink)
brotherxb Member Join Date: Aug 2006 Location: South Louisiana Posts: 93 iTrader: (0) My Photos: (0)	I have a freind that work's at Shell Dearpark in Houston and he say's the same it's should be prices about the same as regular gas or a little cheaper.

05-15-2008, 05:15 PM	#11 (permalink)
George C Senior Member Join Date: Oct 2000 Location: Buffalo, NY Posts: 6,917 iTrader: (0) My Photos: (0)	I think a lot of what you guys are seeing is the rising prices being changed at different times. It seems that fuel has rizzzed about .30 cents this past week or so, and each gas station raises them .05-.10 cents at a time. So, one changes at 9:00am, while another may wait until night time. __________________ My 2008 F-350 http://community.webshots.com/user/GeorgeC1959

05-15-2008, 10:15 PM	#12 (permalink)
lone_star_dsl Senior Member Join Date: Apr 2005 Location: Falcon, CO Posts: 805 iTrader: (0) My Photos: (0)	I went by the local Shell station yesterday and saw gasoline for $3.68 and diesel for $4.04 Went by the same station today and gasoline was $3.70 and diesel was $4.29! Two cents for gasoline and 25 cents for diesel, overnight?!? Give me a break! $100 only got me 23 gallons, little over half a tank! __________________ 2002 F-350 Lariat, Crew Cab, Long Bed, SRW, 4X4, Auto trans, Blue IH CPS, Tymar intake, Wicked Wheel, Zoodad Mod, Intercooler wrap removal, 4" straight pipe exhaust, 2" leveling kit, ISSPRO gauges, Acetone Badges, 110 Gal Aux Fuel Tank, XM radio, Cobra CB, DVD, 305 Nittos, CHROME EVERYTHING!! 99,000 mostly trouble free miles and counting! On the wish list: ATS Housing Stacks http://community.webshots.com/user/tward93

05-16-2008, 09:32 AM	#13 (permalink)
Rookie Senior Member Join Date: May 1999 Location: Maple Valley Washington Posts: 1,877 iTrader: (0) My Photos: (6)	A Standard station I pass was $4.29 on Monday, $4.49 Wednesday and now it's up to $4.69. I'm thinking $5 by June at this rate. __________________ June 1996 F250HD XLT/SC, LWB, 4x4, 4:10LS, E4OD, White outside, Gray inside, Camper/Tow pack, Factory running boards, Factory Aluminum wheels, Factory rear slider, decal free. Factory AIC, Aux dash switches, Full add-a-leaf, Mile Marker SS Hubs, Upgraded E4OD Tranny, Tymar intake, BD downpipe, Exhaust brake, 203* stat, BriteBox, California Regulator mod, Truck Interiors Winterfront, Ported bug guard, Energy Suspension bushings rolling on 265x75 Bridgestone Revo's. KD7UBW - PHAR (Public Health Amateur Radio) My Truck 2008.5 Mazda 3s Touring 5 door in Copper Red Mica w/indash 6 disk Cd changer/MP3 and moonroof: The Wifes

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode