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supercub's avatar
supercub
Explorer
Jan 03, 2018

$1 difference between gas and diesel, WHY ??

The best I can remember, when diesel was $4.00 a gallon, wasn't oil something like $110 a gallon? Now oil is around $60 a gallon and diesel is around $3.75 here in central CA. Can someone explain this to me? Nearly 1/2 of what a barrel use to cost, yet the price of diesel is nearing the highest ever prices.
Another weird thing is, a few months ago, diesel and gas (again here in central CA) were the same.........now gas is a $1.00 cheaper the diesel at the major truck stops. What gives??
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  • Heisenberg's avatar
    Heisenberg
    Explorer
    Jan 03, 2018
    Diesel is exported on the Gulf Coast. Europe finds it cheaper to import from US. Last summer when I got to Colorado and Wyoming I noticed Diesel get underneath unleaded. I used Google to find out why. It was all about the exports which Colorado is immune to due to lack of pipelines.
  • Old-Biscuit's avatar
    Old-Biscuit
    Explorer III
    Jan 03, 2018
    Well.......
    Nov 1, 2017 NEW CA excise taxes went into effect.

    Gas increased 12 cents...from 29.7 to 41.7 cents per gallon
    Sales tax still at 2.25%

    Diesel increased 20 cents....from 16 to 36 cents per gallon
    Sales tax also increased from 9% to 13%


    CA Fuel already switched to the 'Winter Blend' which is traditionally less expensive and fuel prices typically drop 6 to 12 cents per gallon



    BUT then again.....it IS California


    Diesel here is $2.55 and
    Gas is Reg/$2.39----Mid/$2.61----Premium/$2.83
  • msmith1199's avatar
    msmith1199
    Explorer II
    Jan 03, 2018
    The day the 20 cent a gallon fuel tax on diesel kicked in in California the price went up by over 40 cents. I think the oil companies saw the tax increase as an excuse to add some extra profit in. Luckily I have moved to Nevada. You can find diesel here for under $3 and it's all coming from the same place your diesel is coming from with the added cost of pumping it over the Sierras.
  • Ivylog's avatar
    Ivylog
    Explorer III
    Jan 03, 2018
    Currently in Greenville SC...22 cents more. Hope you are enjoying CA. The jet engine has sucked up the difference when diesel was cheaper than gas plus diesel has 23% more energy than gas.
  • Trackrig's avatar
    Trackrig
    Explorer II
    Jan 03, 2018
    A lot of it is the difference in the fuel taxes between the two. The various taxing agencies know that the general public won't scream as loud if they charge the trucking companies higher taxes - the dumb public doesn't think it hits their pocket.

    In Anchorage right now the price of diesel is only pennies more than gas.

    Bill
  • azrving's avatar
    azrving
    Explorer
    Jan 03, 2018
    It's sort of like when I joke with my Canadian friend and tell him but but "You guys have free health care". Ya know what I mean.
  • rk911's avatar
    rk911
    Explorer
    Jan 03, 2018
    lots of factors besides the price of oil are used to determine the price of any commodity including fuel.
  • ScottG's avatar
    ScottG
    Nomad
    Jan 03, 2018
    Our fuel taxes are stupid high too but Diesel has been less than premium for sum time now.
    The prices bounce around for no apparent reason. I noticed this week that Diesel is 13 cents cheaper than it was last week.
    No idea why.
  • Community Alumni's avatar
    Community Alumni
    Jan 03, 2018
    California Fuel Taxes

    JimR

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