What's up with diesel prices?

[jsnip42]

Here in Mississippi I have watched gasoline prices drop once or twice a week. It has gone down from 3.69 a gallon to 3.19 today. However diesel has only gone from 3.89 to 3.79. I know lately diesel costs more than gas but I would think the price of diesel should be dropping as well as gasoline. What's up with diesel?

[Jdrobone]

$3.49 for Shell "premium" (different opinions on whatever that means)diesel here in Wilsons, VA. Not that long ago it was $3.97. At least I'm making a good return on my EXXON holdings.

[Art-n-Marge]

Same here in California where I live but mostly in the $4 range. At last check only regular unleaded is under $4.

I've always heard that diesel was more expensive because processing it was also easier and cheaper. But in the last few years I've now heard and read they are processing diesel more which naturally would drive the price up somewhat, it's an opportunity to gouge! Then with more and more diesel engines being sold this then drives the price up some more and is another opportunity to gouge!

I view any industry that receives record profits collectively being caused by emotional price increases to take advantage of an opportunity as "gouging". A lot of this is evidenced by the fact that when the price of a barrel of oil increases, the price of the pump increases IMMEDIATELY even though that fuel was made with the cheaper priced barrel of oil. And when the price of a barrel of oil decreases, it takes a lot longer to drop the price of fuel at the pump.

That's my opinion of how I see things.

[Bill-N-Donna]

Diesel in our area has only gone down to about $3.89/gal. I’ve also watched gas trickle down over the past few months and overnight it went up .30 on the gal. “Could they be gouging for the Holidays?”

[kramperD]

Same thing I figure; as Bill said.

[Trailer Trash 2]

my reason why
1 Greed ??? or because (there reason ) 2 Ultra low sulfer mix or 3 the extream winter conditions for heating oil usage in the east.
I say #1 then 2 & 3.

[jsnip42]

It just seems to me if gas went down because of drop in price of oil the diesel should also. I can buy supreme gas for 3.50. Diesel is 30 cents a gallon more. I feel like a get a prostate exam every time I buy diesel.

[stiles watson]

I can't believe you guys think oil corporations would take advantage of the citizens. Don't you know they have our interest at heart? These folks wouldn't profiteer off their neighbors, would they? The money for executive bonuses has to come from somewhere.

[bw2]

Here is a link that will provide the taxes placed on gasoline and diesel. In Indiana (my home) it is approx. 14 cents a gallon more on diesel. Other states are more and some are less. It also appears our governments were charging more for diesel as in the beginning of taxes for diesel, diesel vehicles were used more in business situations?, my assumption. I seem to recall a discussion in Indiana that the additional state taxes on diesel was due to the heavier vehicles having a larger impact on the conditions of the state roads and highways. As such, they should pay a higher tax.

Taxes on fuel

Right now in the Indianapolis area, diesel is now about the same price as regular, in some cases a little cheaper. The diesel did not jump up like the gasoline did this past week. Not sure what happened there!

[tim43]

Here in NC, the state tax on diesel and gas went up 2.5 cents today. Think we have the third highest fuel tax in the country.

[Art-n-Marge]

But this is where the gouging comes from. It's not just the oil companies. I already pay a premium for driving a heavy truck on state roads in the extra $200 "weight fee" for California DMV. This is a seperate line item already for my willingness to having a truck that qualifies for a weight fee that even now I'm not driving it because of the fuel prices. Then there's taxes in the fuel because I have a heavy vehicle that I pay for when I am driving it.

There is plenty of evidence that the money is NOT going to the roads!!! They have gotten progressively and permanently bad and are staying that way. It's so rare when they fix them it actually makes the news and becomes a big deal about every 6 to 12 months.

I think the money is going to their pension plans so the these same government workers that are living off the taxpayers, want to live off us taxpayers when they are no longer working. What ever happened to putting aside some of the money you're making while you're working to create your retirement income like I did. I did without plenty doing this and having to put away a little bit because I shouldn't have to depend on anyone else. I don't believe our taxes should be used so they can play with ALL their employment income then we give them more pay after they're done working.

I want to thank jsnip42 for explaining that feeling I always get when refueling - what a visual I'm getting now! I always wondered what that was especially since I'd wheel around after the "goosing" feeling and would never see anyone there. Let's not go there anymore.

[Delaine and Lindy]

Paid $3.74.9 about one hour ago. It was at exit #24, Diesel will continue to go up util America decides to go after our resources, until then we are held hostage.

[sgtpp214]

GREED!!!

[Gorgeguy]

In my town in Oregon regular diesel is right around $4, when I buy diesel for my dozer and tractor I can get it for .30 less a gallon. Some places will sell the "red" fuel for the discounted rate (you don't want to get "sticked" buy a transportation dept person with red diesel in a road vehicle), others will sell regular clear diesel for the discounted rate as long as it is going into a fuel container that is not a fuel tank in a diesel truck. This indicates only a .30 road tax on diesel,but that is probably the state and not the federal portion.

[Sinterior]

Canada exports oil, I believe the US imports more from us than from anywhere else, yet BC diesel prices are $4.50 to over $5.00 a US gallon.
Taxes are a main reason why fuel is so expensive here.

[LuckyNichol]

I have spent most of my income on booze, womem and gambling. The rest I spent frivolousty. Everything I do is either illegal, immoral, or fattening. Now this diesel thing. Sheeesh.

[Phil P]

Hi

Remember the lady that came to the butcher complaining his pork chops was priced too high at $.60 a pound. She said the butcher across the street had a price of $.30 a pound but he was out of pork chops. The butcher replied “Lady when I don’t have any pork chops my price is also $.30 a pound.”

I pump 7,000 gallons of diesel in to a motor vehicle and 8 hours latter it requires another 7,000 gallons to get back home.

Remember supply and demand. As long OPEC continues to “fix” the price of oil then with this kind of demand they will control the price.

Then the government steps in and requires the refineries to change the formula of the fuel twice a year from winter to summer and back to winter. Additional cost.

Then the government steps in again and requires the refinery to change their process to reduce the sulfur in diesel. Result less product per barrel of oil. Additional cost.

SO now we have elevated cost of acquisition of raw material, elevated cost of processing the raw material and motor vehicles that consume 1,000 galloons plus and hour of the product when they operate.

The result is higher cost to the consumer.

Now the local government puts a tax on the fuel use in road vehicles and the cost to the consumer is even higher.

Phil P

[washley1]

Just to report, we have prices "dumped" to $3.72 in parts of the Tampa area.

[pbahlin]

I don't buy the greed argument. First of all, the combined hit of state and federal tax is more than the profit per gallon by the oil companies. So the biggest greed head is your friendly politician and I've yet to see an accounting that shows where this tax money goes. Second, there can be local differences of up to a dime or so but I've never seen them last for long. Usually when one guy goes down the rest follow quickly.

Most importantly, neither the local guy or the big oil company lets profit sit around. It's put back to work either as investment in more supply or dividends to shareholders. A CEO who sits on free cash is being stupid and not honoring their fiduciary responsibilities.

If your 401K statement goes up by 10% are you greedy? If you own a business and you charge a premium over the guy down the street are you greedy or are you providing a better service?

I'm sure there are greedy people out there but it's too easy to yell greed and probably just not well informed either. For me, if I think about it, it's an amazing thing that I can get consistent fuel at tens of thousands of places any time I drive up. I can get food, snacks, a shower, a snooze, and repairs everywhere I go to fuel up.

You pay way more for milk, aftershave, bottled water, Windex, beer, and scotch and never scream greed do you?

[Phil P]

Well-said pbahlin

Phil P