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Old 05-06-2011, 07:33 AM   #31
JRTJH
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Might be because it's changeover time for gas. Time to change the formula from "winter gas" to "summer gas" So, if the refinery is shut down or on a slow down, they'll be producing less, thereby keeping the demand for available gas up. This would keep the gas prices up. If diesel is not being affected by a "slow down" then there would be more available and the price would be down, or at least not as high.

Seems like "old times" when gas was always higher than diesel, but I'd guess those years are waaaaay behind us and gas will fall enough to keep diesel up there.

Funny how when the speculators suggest oil will rise in a few days, fuel prices go up, but when the price of oil actually goes down, fuel prices don't follow as quickly on the downslide as they do on the uphill side..... Hmmmmm oil companies just keep working their profits any way they can
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Old 05-06-2011, 08:55 AM   #32
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Howdy All;

Just figured I'd throw in my 2 pennies.
Here in Central Utah price of diesel is hovering around $4.20 (5gal X$4.20 = $21.00) My tank holds 42 gal. or $176.00 for a compleate fill-up).
I try harder to fill near 1/2 tank more these days.
The part that bugs me is that diesel has less refining to it than gas.
The refining tree (as it were), is roughly diesel/ fuel oil (for your furness of "Off road <farm tractors, etc>), then afew other concoctions then right
near the end of the process is gasoline...

Kind of like buying Ladies lingerie ... The less there is the more it costs.

hankaye
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Old 05-06-2011, 10:26 AM   #33
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Hmmmmm Never thought of it quite that way, Hankaye.... Good analogy
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Old 05-06-2011, 12:22 PM   #34
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Question High fuel prices - another perspective

We all like to blame the gas companies for gouging us at the pumps. After all, they are the folks selling the stuff to us so who or what else could be possibly be responsible for these crazy prices? We've read the comments about it being summer - the time of year when we all drive more and the switch-over to "summer gas". Others have pointed the finger at speculators.

I am wondering if we should be pointing in a different direction - the price of a barrel of crude oil. If you consider nearly all of the factors involved in determining the price of fuel at the pump, the one that fluctuates the most is the cost of a barrel of crude oil. All of the others - marketing, distribution, refining, government taxes, and retailing - pretty much remain constant. When crude oil rises to $115/barrel, we pay more at the pump. When it drops to $80/barrel, we pay less.

It costs the gas companies more to produce a gallon of fuel when the cost of crude oil is high and those costs are passed on to us. When the price of crude oil drops, the price of fuel also drops. (But perhaps not in the same ratio as was pointed out in another post).

The price of a barrel of oil isn't determined by any one country -- it is set by many so in that sense the world says what the price is going to be not the gas companies. And that price is a market price. With the unrest going on in many oil producing countries, that price is going to be higher than usual - as we are seeing today.

If I thought that by boycotting a gas company for a day or two and not buy any gas would do any good --- I would be first in line. But the reality is ---- I am pointing my finger at the wrong people.

I have to put some diesel in my truck soon and I will mumble and curse as I watch the readout on the pump go into the triple digits. Not knowing who to blame sucks! Might go buy some of that skimpy lingerie that hankaye mentioned. No, that won't work either. At our age, more is better.
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Old 05-06-2011, 12:24 PM   #35
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Quote:
Originally Posted by hankaye View Post

Kind of like buying Ladies lingerie ... The less there is the more it costs.

hankaye
Without the fringe benefits .... pun intended, The other Hank
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Old 05-06-2011, 01:29 PM   #36
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Quote:
Originally Posted by hankaye View Post
Howdy All;

Just figured I'd throw in my 2 pennies.
Here in Central Utah price of diesel is hovering around $4.20 (5gal X$4.20 = $21.00) My tank holds 42 gal. or $176.00 for a compleate fill-up).
I try harder to fill near 1/2 tank more these days.
The part that bugs me is that diesel has less refining to it than gas.
The refining tree (as it were), is roughly diesel/ fuel oil (for your furness of "Off road <farm tractors, etc>), then afew other concoctions then right
near the end of the process is gasoline...

Kind of like buying Ladies lingerie ... The less there is the more it costs.

hankaye
Hank,
You are almost correct. But off-road diesel and on highway diesel is refined at the same time. The only difference is the off-road diesel does not have road tax applied and is dyed red. The large refiners are under mandate to refine all diesel to 15 PPM as of 2010. I do not know what classifies a small refiner but they do not have to comply until 2014.
See attached link:
http://www.clean-diesel.org/nonroad.html
The cost of refining two different grades of diesel and shipping to a terminal would be enormous and would lead to confusion. So off-road diesel will be 15 PPM the same as on highway unless it is left over from prior years.
Jim W.
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Old 05-07-2011, 07:20 AM   #37
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Wink Not so fast!!

Quote:
Originally Posted by Festus2 View Post
...the one that fluctuates the most is the cost of a barrel of crude oil. ....
I want to take comfort in this fact; but it seems to me the cost of crude oil is far from the rate of inflation; so why is it's market value permitted by OPEC to inflate so unrealistically. It's fuzzier math than Andrew Fastow's management of ENRON.

Given USA is the largest consumer of this resource; it seems we have the opportunity to influence on the end result significantly. Even in the last few weeks it has been reported that the price has finally reached the US consumer's threshold, causing US consumers to reduce consumption; ultimately restulting in the federal government to pay attention. All of a sudden there has been a freeze in the price climb.

Every time we boycot this energy recource, collectively for all retailers, we make a statement that does resonate globally, and impacts the market. They will continue to gouge the barrel price as long as we stand idley by.

For those like me that don't believe the retail price comes down when the barrel price does; here is some 'long-term' historicals that suggest otherwise, over the long haul.
http://www.GasBuddy.com/gb_retail_pr...me=72&units=us
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Old 05-07-2011, 11:12 AM   #38
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Jim W., Howdy;

Ain't gonna pick nits with ya, however the / between diesel and fuel oil in my first post was ment to infer that they were the same, just runnin' under different names (and the addition of red dye).
That's why some States will direct buses (both Commerical and Private ie.Motorhomes), to enter Weight Stations so they can check the tanks to see what fuel is being utilized.
Like I said, NOT looking to split-hairs nor am I wanting to detract from your statements. You have some good information in that post...

hankaye
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