Diesel fuel penalty

Don't worry Fed. Gov is now wanting the sulfur content of gas lowered like they did years ago with diesel. The extra refinery steps needed to reduce the sulfur in diesel was 1 of the main factors in the price increase. So when the Feds require Ultra-Low Sulfur Gas, it's price will then be equal to or above Diesel.

I agree with goducks10. I think the variance in state taxes is the biggest reason for the difference in the pump price of gasoline or diesel from one state to another.

ULSD is only premium in price because worldwide demand exceeds local country distillers ability. The US is exporting more ULSD then it ever has since 2009. Exports have gone from around 300k barrels per day of refined ULSD to over 900k per day. And with that so has the premium price on ULSD over regular gasoline which has gone from 159k barrels a day to only 576k barrels per day in the same time frame.

http://www.eia.gov/dnav/pet/PET_MOVE_EXPC_DC_NUS-Z00_MBBLPD_M.htm

Around the decade change of 1900/2000 the feds mandated that producers change to the new ULSD

More like a century than a decade (or ten decades)?

artguys wrote:
As can happen it starts in one direction then goes off the edge...so I'll make a this is my best attempt to outline what the disparities are about.

The factors concerning fuel costs today are:

Supply

Demand

Distribution

Producers accounting practices, LIFO(Last In First Out)

For the most part production is about cooking then distilling the crude. Those products that come from that process come off of the distillers at different stages. After coming off they are refined and filtered further, most that is. Transportation fuels in the middle, incl. Diesel Gas and Jet fuel...lastly are the tars, or more commonly known as the bottoms by the industry.

Around the decade change of 1900/2000 the feds mandated that producers change to the new ULSD(Ultra Low Sulfur Diesel) regs. And even after those costs for infrastructure changes were added to the production cost of diesel, it was still cheaper to produce. Now there are several things in play that dictated the eventual price at the pump for diesel being higher but the dominant three were demand, distribution, and Big Petros' dictating to Washington. Much like Big Pharma and their influences on Washington and their agencies the Petroleum industry can and do influence policy.

Autonomous? A little no...a lotta yes.

You missed "Market Speculators"! I would put them high of the list.

I grew up in the wholesale distribution chain, and price fixing has been a staple of the industry for years.

I even know who Mister X was! Yes the oil company insider that testified incognito before Congress in the early 70's.

Chris

States have different taxes on fuel. Some may have higher diesel taxes or higher gas taxes. It's one of the reasons why fuel prices vary so much from state to state.

artguys wrote:
As can happen it starts in one direction then goes off the edge...

That, and the OP is gone.

As can happen it starts in one direction then goes off the edge...so I'll make a this is my best attempt to outline what the disparities are about.

The factors concerning fuel costs today are:

Supply

Demand

Distribution

Producers accounting practices, LIFO(Last In First Out)

For the most part production is about cooking then distilling the crude. Those products that come from that process come off of the distillers at different stages. After coming off they are refined and filtered further, most that is. Transportation fuels in the middle, incl. Diesel Gas and Jet fuel...lastly are the tars, or more commonly known as the bottoms by the industry.

Around the decade change of 1900/2000 the feds mandated that producers change to the new ULSD(Ultra Low Sulfur Diesel) regs. And even after those costs for infrastructure changes were added to the production cost of diesel, it was still cheaper to produce. Now there are several things in play that dictated the eventual price at the pump for diesel being higher but the dominant three were demand, distribution, and Big Petros' dictating to Washington. Much like Big Pharma and their influences on Washington and their agencies the Petroleum industry can and do influence policy.

Autonomous? A little no...a lotta yes.

My assumption is that the original poster is wondering why the price difference between gasoline and diesel varies so much from state to state.

I'm guessing demand for heating oil in some states pushes diesel prices up in the winter.

RAS43 wrote:

RinconVTR wrote:
Everyone is focused on the fuel cost vs all the other points the OP brings up. Interesting.

The OP only brought up the fuel costs. What other points?

:S Slap the dog and spit in the fire.

Why did we kick off with comparing diesel to premium? My gasser pulls just fine on 87 octane.