Forum Discussion
DelCamper
Jul 28, 2015Explorer
bagman
"I can, it cost the oil companies less money to process diesel fuel than gas. It is high taxes on diesel fuel that makes it more expensive in many states! "
The cost of refining is minimal outside of rate occurrences like the capacity being taken off stream in the aftermath of a hurricane. Diesel fuel is actually more valuable because its denser by about 20% relative to gasoline so you get less BBLs or diesel out of a BBL of crude than you get gasoline.
The process units are designed to make more gasoline than #2 oil (diesel / heating oil). They have some "wiggle and jiggle" but not too much. If x amount of gasoline is made then x amount of diesel is made too regardless of market demand.
"I can, it cost the oil companies less money to process diesel fuel than gas. It is high taxes on diesel fuel that makes it more expensive in many states! "
The cost of refining is minimal outside of rate occurrences like the capacity being taken off stream in the aftermath of a hurricane. Diesel fuel is actually more valuable because its denser by about 20% relative to gasoline so you get less BBLs or diesel out of a BBL of crude than you get gasoline.
The process units are designed to make more gasoline than #2 oil (diesel / heating oil). They have some "wiggle and jiggle" but not too much. If x amount of gasoline is made then x amount of diesel is made too regardless of market demand.
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