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mike_mck's avatar
mike_mck
Explorer
Jan 03, 2014

confusion gas vs diesel prices

I'm a little confused. I can't remember this big a difference in price.
Phoenix Az.
reg gas about $3.10 while Diesel is $3.59 to $3.65

Anybody have ideas what drives such a large difference in price?

25 Replies

  • I think supply and demand in a world wide market is the correct answer. In addition to China and India greatly increasing the number of vehicles, manufactured, sold, and driven in those countries, many of them like in Europe and unlike in the USA, are diesel.
  • Diesel fuel used to be cheaper than gasoline. At that time it was actually possible to make a diesel MH cheaper to run over a five or six year period than a gas MH enough to pay for the price difference between the two units.

    Diesel has always gone up in price in the fall and winter because of the increased demand for heating oil in the northern/ northeast US. Heating oil and diesel are very similar so demand exceeds production capacity at times. The colder the winter, the bigger the supply gap.

    The introduction of ULSD to combat some of the massive pollution issues with old style diesel fuel has raised the cost. It also raises some of the cost due to changes needed in the infrastructure to store and deliver ULSD.

    There have also been conversions of some refineries which has resulted in more supply of gasoline and lower supply of diesel.
  • Fewer consumers are buying diesel powered vehicles....remember when every car manufacturer had at least one diesel powered car ?

    Plus now that so many folks are buying items on line, less goods need to be shipped from manufacturer to distributor to retail outlets. Now the goods get shipped directly to the consumer via air or rail transport to a local distribution center. Fewer semi trucks on the road using diesel.

    It's the old supply & demand equation a work.
  • Supply and demand. I've heard years ago with China and India's rapid growth. diesel fuel use increased greatly. Of course, I just heard that, don't know if that's factual but makes sense.

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