Lower fuel cost ?

[dpam]

I would like to submit my 2 cents worth to the topic of diesel/fuel prices. I’m not whinning, but simply want to clear up any misunderstandings. Please consider the following:
•Canada’s population is approximately 11% of the USA (approx. 35 million vs approx.313 million).
•In Canada the average fuel taxes are approx. 32% of the pump price; whereas in the USA the average fuel taxes are 11% of the pump price. Based on 2012 data. Fuel taxes are high in Canada because the Federal Government and Provincial Governments need to drive infrastructure and program revenue (such as healthcare) from somewhere since Canada does not have a population in the 100s of million people.
•Federal Income Tax rates based on 2011 – Canada $83 -$128K = 26%; USA $83K-$174K= 28%. Note these percentages do not include Provincial and State taxes, plus in the USA there are more tax write offs. Therefore it is assumed that Canadian’s income is not more heavily taxed than the USA.
•Revenue raised from excise fuel taxes not including Provincial or State taxes: Canada $5 billion /yr; USA $25 billion/yr.

Why is diesel more expensive than gasoline? Here is the official answer, from the Energy Information Administration:
Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. The transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is higher than the tax on gasoline.

[K0LCB]

Thanks David for clearing up a popular misconception!

[Artemus Gordon]

quote:Originally posted by jlb27537

Yes, you read that right. I just typed it wrong.....

Correction $3.49 @ Costco McAllen, Tx...

Darn, I left Redding for McAllen Tx after hearing about $2.49 fuel. Glad I checked my email before I got too far! I was going to fill up truck and 2 Jerri Cans! Could not pass that up! Lol. Plus I never been to that part of Texas !

[jlb27537]

quote:Originally posted by Artemus Gordon

Darn, I left Redding for McAllen Tx after hearing about $2.49 fuel. Glad I checked my email before I got too far! I was going to fill up truck and 2 Jerri Cans! Could not pass that up! Lol. Plus I never been to that part of Texas !

Come see us. You will like it here.....Jim

http://www.rancherovillagecircle.com/

[tbhd2]

Central Florida it's 4.09 at the truck stops (Pilot, Flying J) and 3.87 at Wal Mart for diesel.

[mhs4771]

Wal-Mart in Sebring is $3.879, but it's B5 with a note under that stating 5 to 20% Bio. So I would think the sign should be changed to B20.

[Tom S.]

quote:Originally posted by dpam

Why is diesel more expensive than gasoline? Here is the official answer, from the Energy Information Administration:
Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. The transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is higher than the tax on gasoline.

I read the explanation of the low sulfur processing adding to the cost of the finished product some years ago too. However since diesel fuel processing stops there while gasoline requires additional refining, I call foul on that explanation. When gas prices around here were closing in on $4 a gallon, diesel prices were only $.40 to $.50 more a gallon. Since then, gas has dropped to $3.05, but diesel has risen to $.70 to $.85 a gallon more. On top of that, I'm talking winter diesel, which contains kerosene, and kerosene is less in cost per gallon than diesel.

So someone is ripping us off.

Please note: this is not meant to be in argument to what dpam stated, just my own slant on things.

[dpam]

quote:Originally posted by Tom S.

I read the explanation of the low sulfur processing adding to the cost of the finished product some years ago too. However since diesel fuel processing stops there while gasoline requires additional refining, I call foul on that explanation. When gas prices around here were closing in on $4 a gallon, diesel prices were only $.40 to $.50 more a gallon. Since then, gas has dropped to $3.05, but diesel has risen to $.70 to $.85 a gallon more. On top of that, I'm talking winter diesel, which contains kerosene, and kerosene is less in cost per gallon than diesel.

So someone is ripping us off.

Please note: this is not meant to be in argument to what dpam stated, just my own slant on things.

I agree with you that we are being ripped off. I copied the EIA explanation; it is not my personal explanation. I understand why taxes are required, but I may not agree with the % of taxes, but my personal view is that it is the Oil Companies and fuel retailers that are ripping us off. There was a time when most retail gas stations had different prices posted, and it was very clear there was competition, but now it seems very few have a cheaper price than the rest of the gas stations. In Canada there are a very few "rebel" gas retailers that offer a fair lower price, but the large Oil Company retailers all have the same price. Sounds like collusion to me.

[jimcol]

It became easier for the fuel companies to rip the consumer off once they got shippers and receivers to accept "fuel surcharges". It's hidden from consumers even though they pay for it. The rest of us who use diesel are such a small group we have no voice. Jim

[Art-n-Marge]

I still can't get over the fact there's some Costcos out there selling diesel. I have never run into one. If they ever do, then they should be the lowest price around, since their gas seems to be lowest and we don't have a gas vehicle (bummer, sorta).

[bethandkevin]

quote:Originally posted by Artemus Gordon

California has many additional costs built into fuel prices. But today I paid. $3.87 gal. I tell you, that's unheard of in my neck of the woods. I bought 70 gal I was so excited! Lol. I know other States may already be lower, but Redding Ca has always been high !

-said the guy staying at the $160.00/night postage stamp campground.
LOL just had to poke a bit Mike. I been cooped up too long me thinks.

[Artemus Gordon]

quote:Originally posted by BethandKevin

-said the guy staying at the $160.00/night postage stamp campground.
LOL just had to poke a bit Mike. I been cooped up too long me thinks.

Yes, I deserved that! Lol

[Bill and Jan]

Diesel is $3.53 in Casa Grande, AZ