Fuel Prices............WHY ??

If we had a policy that encouraged export of compressed or liquified natural gas (of which we have plenty, and it's relatively cheap), this might reduce some of the demand for diesel. But it's pretty much impossible for the companies to get permits to build the new NG compression facilities that are needed along the coasts to containerize this product.

Current local price to fill a vehicle with CNG is $1.65/GGE (gas gallon equivalent).

WE are exporting refined product and diesel is a big one. Japan shut its nukes and is using diesel and they are taking a lot of it off the market as is China. Neither one of them have the refining capability so they get the refined product and it is why diesel is not down. It is in higher worldwide demand.

In addition to Diesel costing more in Europe, European Diesel does not have to be the Untra-Low Sulfur diesel that is mandated in the US. So selling non Ultra Low increases the oil companies profits even more because, Ultra Low Diesel has to be refined 3 times what old regular diesel does thus increasing profits EVEN more.

Diesel in Europe as of today is selling for about 1.25 to 1.69 euros a liter depending on where you are. Todays rate is 1 euro equals $1.28 us. Using an average of 1.40 euro per liter that equals about $1.80 us per liter. That works out to about $6.80 cents a gallon for diesel in Europe, assuming my math is right.

427435 wrote:
The demand for gas has been dropping due to more fuel efficient cars, car pooling, more use of mass transit etc. Demand for diesel, on the other hand is steady or increasing.

Not exactly true. In the U.S a lot of it is we are becoming self reliant on oil due to new fields in Texas, and throughout the south west. Saudia Arabia is very concerned with the oil production we are getting out of North Dakota and Alaska is kicking up their pipeline production to try and keep pace. As someone else posted, our number one export now is refined oil products, taking over aircraft exports.

If you look at our exports of fuel, gas and diesel, you will see a steady increase in both, especially diesel. Diesel in the US cost between $ 3.30 to $4.00 dollars a gallon. This same fuel in Europe cost $ 8.00 to $ 9.00 dollars a liter. You do the math. The oil companies make more money, even if they import the raw crude into the US, refine it, and ship it back overseas.
A side note, it is harvest season, thus we have thousands of tractors, harvesters, and related support vehicles working our nations farms, most of these vehicles are burning DIESEL. On our farm, we can go through 500 gallons of diesel every day during the fall harvest time. Same goes true in the spring during planting season.

I would think that the world demand for diesel is much stronger than for gasoline.

2oldman wrote:
Google, why diesel cost more

I did that and read some articles and found out that nobody knows!! Okay, people know but the reasons are all over the place for why. I do understand some of their reasons, but the reasons don't always completely explain the pricing. For example, when I bought my diesel motorhome in 2004, diesel was cheaper than gas here in California. Within a few months it went the other way and then diesel remained higher than guess until earlier this year. I bought a diesel VW in February of this year and back then diesel was cheaper than gas by a few cents. A few months later that reversed and today I've seen as much as a 70 to 80 cent difference in price.

Google, why diesel cost more

Supply and demand.