Shabtai Evan

When I bought my 2003 6.0L at the beginning of the year diesel cost less
that regular gas. Today it was 15 cents more expensive then premium gas.
How come? Will it ever be less than regular gas again?

Simon

Hate my F150

Simon, the price of diesel is reflective of the price of home heating
oil, as they are basically the same except for a few additives. Fuel
oil is traded as a commodity on the open market and is high right now
due to the season we are in. Venezuela has put in the market a large
amount of heating oil and that is why you are seeing the price of
diesel go down. As for the price, probably not until the market
recognizes the benefits of diesel engines, but why do that when they
last longer and we would not trade them in as often!

Hate my F150

Simon, the price of diesel is reflective of the price of home heating
oil, as they are basically the same except for a few additives. Fuel
oil is traded as a commodity on the open market and is high right now
due to the season we are in. Venezuela has put in the market a large
amount of heating oil and that is why you are seeing the price of
diesel go down. As for the price, probably not until the market
recognizes the benefits of diesel engines, but why do that when they
last longer and we would not trade them in as often!

Agave

So far I've heard, saw, read, or it came to me in a dream that the
price of diesel was going up because...

* Increased demand in China (and other emerging economies)
* Decreased production of crude
* Lessening supplies of crude
* Expensive crude (harder to get, lower quality)
* Greed by OPEC and other foreign oil producers
* Greed by domestic oil producers
(http://www.consumeraffairs.com/news0...ating_oil.html)
* Republican (Bush) favoritism to (Texas) oil barons
* Republican policies angering oil producing countries
* Poor forecasting/planning; not listening to the experts
* Military demand for the war machine
* Refineries already running at 100% capacity
* Difficulty (impossibility?) to build new refineries
* Shift from nuclear/hydro/coal/etc. power plants to petroleum
* Increase in green (solar/wind/etc.) power sources
* New petroleum burning domestic power plants
* Domestic economic expansion
* Increased diesel engine use in automobiles
* Increase in lower MPG SUV, 4x4, minivan, and performance model sales
* Automobile manufacturers in collusion with oil companies
* Forced conservation
* Natural disasters
* Increase (fed and state) government income due to decrease in
other taxes (http://www.taxfoundation.org/publica...show/1054.html)
* Simple inflation
* Increased labor costs (payroll, health care, other benefits)
* More fuel efficient automobiles causing less demand
* Changing economy (less industrial/manufacturing) decreasing demand
* Changing economy (more high tech/service) increasing demand
* Warehouse on wheels (Wal-Mart) inventory management practices
putting more trucks on the road
* Internet/catalog shopping increasing door-to-door delivery
* Consumerism for more electronic/electric devices/appliances
* Increased use of petro-chemicals
* Global climate change
* Cyclical/Normal climate fluctuation
* Less air travel; more automobile/RV/train/bus/ship travel
* Exodus after 9/11 from cities to suburbs/rural increasing
automobile commuters/commuting distances
* Build-up in desert Southwest and other areas with large energy demands
* Decrease in public transportation
* Come to parity with other world economies to stabilize/standardize
oil prices
* Preparing (cover costs) for ultra low sulfur diesel
refining/distribution in 2006
* Investment of oil companies in alternative fuel sources
* Alternative fuels cutting into oil companies profits
* Eco-rebels forcing more regulations
* Aging tanker fleets needing investment in new $$$ tankers
* Aging petroleum infrastructure needing investment in new $$$
drilling/refining/distribution equipment
* Aging transportation infrastructure needing $$$ investment

Shabtai Evan wrote:
> When I bought my 2003 6.0L at the beginning of the year diesel cost
> less that regular gas. Today it was 15 cents more expensive then
> premium gas.
> How come? Will it ever be less than regular gas again?
>
> Simon

Chris Hill

On Wed, 21 Dec 2005 16:13:16 -0800, Shabtai Evan <shabtai@comcast.net>
wrote:

>When I bought my 2003 6.0L at the beginning of the year diesel cost less
>that regular gas. Today it was 15 cents more expensive then premium gas.
>How come? Will it ever be less than regular gas again?


I doubt it will be less than regular gas, unless of course something
happens to disrupt the refineries that make regular gas. One problem
no one has mentioned is new lower sulfur requirements going into
effect in January. Don't feel bad, though, diesel has about 20% more
energy per gallon than gasoline, so you're still probably getting a
good deal.

Agave

Hey, low sulfur was in my list :-)

Chris Hill wrote:
> On Wed, 21 Dec 2005 16:13:16 -0800, Shabtai Evan <shabtai@comcast.net>
> wrote:
>
>
>> When I bought my 2003 6.0L at the beginning of the year diesel cost less
>> that regular gas. Today it was 15 cents more expensive then premium gas.
>> How come? Will it ever be less than regular gas again?
>>
>
>
> I doubt it will be less than regular gas, unless of course something
> happens to disrupt the refineries that make regular gas. One problem
> no one has mentioned is new lower sulfur requirements going into
> effect in January. Don't feel bad, though, diesel has about 20% more
> energy per gallon than gasoline, so you're still probably getting a
> good deal.
>

TheSnoMan

Shabtai Evan wrote:
> When I bought my 2003 6.0L at the beginning of the year diesel cost less
> that regular gas. Today it was 15 cents more expensive then premium gas.
> How come? Will it ever be less than regular gas again?
>
> Simon


Supply and demand. I do not look for it ever to be cheaper again.
Current admin pushed for more oil fired power plants when they took
office in 2001 and those plants started coming on line in 04 and 05
increasing demand. Thye would not dream of pushing coal plants since we
hav a 300 plus year supply of that. I look for diesel to cost evem ore
in the future. I heat with heating oil here and it is sky high too. I am
thinking of converting to propane next year because it has not skyrocketed.

--

-----------------
www.thesnoman.com

Agave

but, propane $$$ is tied to oil...

TheSnoMan wrote:
> Shabtai Evan wrote:
>> When I bought my 2003 6.0L at the beginning of the year diesel cost
>> less that regular gas. Today it was 15 cents more expensive then
>> premium gas.
>> How come? Will it ever be less than regular gas again?
>>
>> Simon
>
>
> Supply and demand. I do not look for it ever to be cheaper again.
> Current admin pushed for more oil fired power plants when they took
> office in 2001 and those plants started coming on line in 04 and 05
> increasing demand. Thye would not dream of pushing coal plants since
> we hav a 300 plus year supply of that. I look for diesel to cost evem
> ore in the future. I heat with heating oil here and it is sky high
> too. I am thinking of converting to propane next year because it has
> not skyrocketed.
>

TheSnoMan

Hate my F150 wrote:
> Simon, the price of diesel is reflective of the price of home heating
> oil, as they are basically the same except for a few additives. Fuel
> oil is traded as a commodity on the open market and is high right now
> due to the season we are in. Venezuela has put in the market a large
> amount of heating oil and that is why you are seeing the price of
> diesel go down. As for the price, probably not until the market
> recognizes the benefits of diesel engines, but why do that when they
> last longer and we would not trade them in as often!
>


It is the same stuff. I talked to my distrubtor for heat oil in this
area and they are a very big operation. They only difference is that
heating oil has a dye added that glows under black light and diesel fuel
does not. Refineries do not make and stock two grades of number 2 oil.
It is all #2 diesel and then they add dye to the taxe free heating oil
or mix some #1 with it to winter blend the number 2 in winter time.

--

-----------------
www.thesnoman.com

Joe

You're making that up. Propane and oil are totally non-interchangeable, and
equipment-wise the uses are unrelated, so the supply and demand of each, and
their prices, are pretty much independent over the short term.

"Agave" <idon't@thinkso.com> wrote in message
news:UOOdnbo729Ki5jbenZ2dnUVZ_sednZ2d@comcast.com...
> but, propane $$$ is tied to oil...
>
> TheSnoMan wrote:
>> Shabtai Evan wrote:
>>> When I bought my 2003 6.0L at the beginning of the year diesel cost less
>>> that regular gas. Today it was 15 cents more expensive then premium
>>> gas.
>>> How come? Will it ever be less than regular gas again?
>>>
>>> Simon
>>
>>
>> Supply and demand. I do not look for it ever to be cheaper again. Current
>> admin pushed for more oil fired power plants when they took office in
>> 2001 and those plants started coming on line in 04 and 05 increasing
>> demand. Thye would not dream of pushing coal plants since we hav a 300
>> plus year supply of that. I look for diesel to cost evem ore in the
>> future. I heat with heating oil here and it is sky high too. I am
>> thinking of converting to propane next year because it has not
>> skyrocketed.
>>