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Old 08-19-2006, 06:12 AM   #9
sreigle
Montana Master
 
Join Date: Nov 2002
Location: Oceanside
Posts: 20,028
M.O.C. #20
Someone correct me if I'm wrong. I understood diesel is produced from the byproducts or leftovers after gasoline production. What is left is refined into diesel/kerosene/heating oil. If that is correct, then the more gasoline produced the more diesel/kerosene/heating oil can be produced. In that case, the priority is not between gasoline and diesel but between diesel, kerosene, and heating oil. That's what they keep telling us when diesel prices go up in the winter, anyhow. Do I misunderstand the process?

My understanding of why diesel is now higher than gasoline when for years it was the other way around is that truckers are now allowed to contract at an anticipated price and can pass any increase along to the receiver of their goods as a surcharge. Thus we don't hear the truck unions screaming like we used to. Just us little guys taking it in the shorts once again.

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Steve Reigle (pronounced Regal)
Fulltiming since 3/21/03
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