Forum Discussion
DelCamper
Oct 15, 2012Explorer
Up until the crash in 2008 diesel was discounted in the non winter months. It was a by-product of producing sufficient gasoline to meet demand and in warmer months with less #2 oil demand too much was made. Since 2008 the US crude oil demand has dropped by 3 million bbls/day. That created a situation where just enough diesel is made to meet demand. The price now reflects this.
Many believe that gasoline being more "highly refined" should cost more and diesel less. The answer to that is refining is the cheapest component in fuel cost with crude oil and taxes being far greater. Diesel fuel is approximately 20% denser than gasoline and hence has more crude oil in it. It's therefore more valuable than gasoline and costs more accordingly. Diesel also packs about 15% more (energy) BTUs due to that increased mass.
I hope this clears up some misconceptions.
Many believe that gasoline being more "highly refined" should cost more and diesel less. The answer to that is refining is the cheapest component in fuel cost with crude oil and taxes being far greater. Diesel fuel is approximately 20% denser than gasoline and hence has more crude oil in it. It's therefore more valuable than gasoline and costs more accordingly. Diesel also packs about 15% more (energy) BTUs due to that increased mass.
I hope this clears up some misconceptions.
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