Diesel fuel penalty
I knew when I bought my diesel truck that the cost for the truck was going to be $9,000 more and that I would be paying twice as much for maintenance and repairs, but I did not expect to be paying mor...
Forum Discussion
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
