Help me understand this!

[rhagfo]

Well less than a year ago gas and diesel prices in the PNW were within a few cents of each other. Diesel was either a few cents more or less than gas. So currently the difference here is about $1.40 between regular gas and diesel. Heating season is over and really never made much difference here in the PNW. I just get the feeling diesel owners in the PNW are being played!

[JRTJH]

Originally Posted by rhagfo

Well less than a year ago gas and diesel prices in the PNW were within a few cents of each other. Diesel was either a few cents more or less than gas. So currently the difference here is about $1.40 between regular gas and diesel. Heating season is over and really never made much difference here in the PNW. I just get the feeling diesel owners in the PNW are being played!

It's the same everywhere that we've travelled. Diesel is between a buck and a buck/fifty more than regular. In Raleigh NC, we found two stations with regular for $3.81 and several around $3.90-3.99. Diesel at those same stations was still $5.76 and up.

[solv3nt]

Diesel owners have long gotten the short end of the stick. Diesel, like heating oil, are the first off of processing. Since diesel was cheaper, until it became popular.

[dutchmensport]

In the Mid-West diesel prices have been over a dollar higher for the last 10 years! One week after I purchased my first diesel truck, diesel prices went higher than gas! The difference has only widened every year since.

[HouseMouse]

Much like Tennis or Golf, Diesel Fuel is the Fuel of Business. They always say Fuel is cheaper the closer you get to the Refinery. That is a big joke. That statement reminds me of the Three Big Lies told in the Air Force. Travel down to Corpus Christi and check the price of all the fuels that are directly dispensed to the public directly in front of the Refineries..... Always considerably higher.

[gearhead]

A conspiracy theory always makes better reading than the simple truth.
Oil companies charge what they do because they can. Supply and demand.
When WTI drops to $50 a bbl, gas and diesel will drop too.
We had 2 Shell stations in front of the refinery in Deer Park. They were the highest priced around.

[Canonman]

I've always maintained that diesel is higher because of demand. The largest contributor to diesel demand is the commercial use of diesel fuel. Motorists using gasoline have the option of reducing their discretionary travel, thereby reducing demand and lowering prices.
Commercial diesel operations simply don't care what the cost is (well I suppose they really do). They just add a "fuel surcharge" to their charges and go on their merry way. And, guess what, the consumer gets to pay for higher diesel prices on almost everything we buy or use.
True statement that when the price of oil goes down so do the prices of gas and diesel. In fact the price of all liquid petroleum products follows the price of crude oil.
On paper at least, diesel fuel is a less refined petroleum distillate than gasoline, so it should always be cheaper to produce than gasoline. In recent years, the federal government has mandated changes to the acceptable sulfur level of diesel fuel, and refiners must comply with these mandates to create an ultra low sulfur diesel fuel product increasing the refining costs. There are also higher federal excise taxes placed on diesel fuel compared to standard gasoline. The other side of the issue is supply. If more drivers in the United States were willing or able to switch to diesel-powered vehicles, the price per gallon of diesel fuel might begin to fall below that of gasoline because more refineries would have the financial incentive to process more diesel fuel during peak driving months, and more fueling stations would offer diesel at more competitive prices.

[gearhead]

When the g'ment came out with the ultra low sulphur requirements we had to build a new sulphur recovery unit. I'm sure it wasn't cheap. But I'm also sure they got the investment back.
Running a refinery ain't no walk in the park. Like we used to say: "We ain't making ice cream out there".
Although I spent 99% of my time in the chemicals side, diesel and gasoline don't just come pouring out of one spigot. Gasoline in particular is a bend of many components. I had a pretty good stream going to gasoline blending when I operated the Olefins Hydrotreater.
Shells Deer Park plant was geared for diesel production and made a lot of it. I think Mexico bought a large percentage.
The BOD of Shell got scared by the greens and sold all the US oilfields, PEMEX bought the Deer Park Refinery. I think the only US oil production Shell has left is offshore Gulf of Mexico. I believe Exxon and Chevron are almost in the same boat.
Damned shame.

[Badbart56]

My first (paying) job that I had was pumping gas at a Gulf station in 1972. I was just a farm kid in the Florida panhandle and gas back then was .25 for regular and .28 for high test. There was a diesel pump on the side of the building for log trucks and farmers and I believe it was selling for .17 a gallon. Of course back then nobody had diesel pickup trucks and although I had heard of them, no one I knew had a diesel Mercedes.

The next year the Arab Oil Embargo hit and the prices for gas went to I believe $1.25 a gallon seemingly overnight. I don't remember what diesel went to but for as long as I can remember it was always cheaper than gas. That is until the diesel pickups got popular, then it went crazy and passed the gas prices.

At some point in the 90's I had a conversation with a petroleum engineer and asked him how this had come to be. He just smiled and said that they "crack" the barrel differently from how they used to. I took that to mean they had made diesel more scarce so they could jack the price up on it.

[hawghauler]

My 1st diesel was an 84 VW jetta turbo 4 cyl it was a 10 yr old car when I bought it fuel was under a dollar/gallon drove back and forth to work for about 5 bucks a week .
In 2000 I picked up a used F250 7.3 ccsb still drive that on occasion mostly a plow truck / deer Fletcher now I remember filling both tanks for 45 bucks

The 2010 dirtymax took 130 for a tad over 1/4 tank this morning

I might just buy a damn horse soon

[Alpine Custom Upgrade]

Originally Posted by dutchmensport

In the Mid-West diesel prices have been over a dollar higher for the last 10 years! One week after I purchased my first diesel truck, diesel prices went higher than gas! The difference has only widened every year since.

Even at a higher price for fuel, a diesel engine is still a better choice than a gas engine. My Chevy Duramax doesn't even break a sweat pulling my Alpine and a combined weight of 24,680. I doubt that a gas engine would ever be able to do that. Just MHO.

[sourdough]

Originally Posted by Alpine Custom Upgrade

Even at a higher price for fuel, a diesel engine is still a better choice than a gas engine. My Chevy Duramax doesn't even break a sweat pulling my Alpine and a combined weight of 24,680. I doubt that a gas engine would ever be able to do that. Just MHO.

^^^^A better choice in a particular person's opinion, for that person. The best choice will be dictated by the job at hand and an individual's preferences.

[Camp CA]

rhagfo......simple answer is there is significantly more gasoline vs. diesel production capacity and feedstock supply AND supply and demand.

[wesaysoracing]

I went by Sam’s Club in Conway Arkansas and diesel was 4.69
Gas was 3.77 Sounds like someone is adding quite a bit of profit to the price of diesel

[rhagfo]

Originally Posted by wesaysoracing

I went by Sam’s Club in Conway Arkansas and diesel was 4.69
Gas was 3.77 Sounds like someone is adding quite a bit of profit to the price of diesel

This is what is bothering me, as stated before gas and diesel were very close in price here in the PNW. Today diesel is $6.19 and reg gas $4.85 for a $1.34 difference!

[LERD]

Originally Posted by rhagfo

This is what is bothering me, as stated before gas and diesel were very close in price here in the PNW. Today diesel is $6.19 and reg gas $4.85 for a $1.34 difference!

It's been that way here in Ohio for at least 10-15 years. Diesel was always more, at least .50 to .70 cents more Today I saw 87 unleaded for $3.96, and diesel is $5.99. So now instead of a buck more, it's $2.

[travelin texans]

Originally Posted by rhagfo

Well less than a year ago gas and diesel prices in the PNW were within a few cents of each other. Diesel was either a few cents more or less than gas. So currently the difference here is about $1.40 between regular gas and diesel. Heating season is over and really never made much difference here in the PNW. I just get the feeling diesel owners in the PNW are being played!

Our son was stationed in the PNW for a big part of his 21 year career & judging from our many visits EVERYONE on that side of the country has been being played for a long long time on EVERYTHING not just fuels!

[RickV]

Besides the Low Sulfur requirements driving up the cost there is a lot more tax on diesel by the States using the logic that more highway damage is done by Big Rigs. https://en.as.com/latest_news/gas-pr...an-gasoline-n/

[rhagfo]

Originally Posted by RickV

Besides the Low Sulfur requirements driving up the cost there is a lot more tax on diesel by the States using the logic that more highway damage is done by Big Rigs. https://en.as.com/latest_news/gas-pr...an-gasoline-n/

Hate to blow holes in your thoughts, but in Oregon fuel tax is 38 cents a gallon both gas and diesel. Production maybe, but why not produce more as much as possible as diesel drives the country’s commerce! Gas prices are now dropping around here about 30 to 50 cents a gallon, diesel maybe 10 cents!

The current administration energy policy is not helping at you can’t stab someone in the back and then expect them to be your best friend.

[rhagfo]

Just a note to this, I took this picture 1/20/21 at the Fred Meyer in Warrenton, Oregon I just filled my truck last Monday in Grand Ronde, Oregon at one of the lower priced stations, and paid $5.49 a gallon. I guess a $2.80 increase doesn't hurt the pocketbook too much!
Also note that diesel and regular are the same price!!