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Groover's avatar
Groover
Explorer II
Nov 21, 2018

The price premium for diesel fuel

I have been noticing gas stations charging $.60 to $1 per gallon more for diesel than gasoline and assumed that it was temporary but this article suggests that it might be around for a while.

https://finance.yahoo.com/news/implications-soaring-diesel-prices-200000170.html

27 Replies

  • Distilled out but they can change things by cracking and such. But they are set up to maximize gasoline production not diesel.
  • I paid 2.96 for diesel today, and gas was 2.55, east of Memphis.
  • Supply and demand. You can only get so much out of a barrel of oil, proportionally speaking. Too much for me type out oon my iPad, but a barrel of oil is 42 gallons.. from that 42, slightly less than half can be distilled into gasoline, and maybe 10-12 gallons diesel, 4 gallons jet fue, the rest goes to other petroleum products. Maybe some else can chime in and relate thevsupply side to the demand side.

    And yes, tax is just too dang much in the greedy states and countries.
  • OK that's one reason but another long term reason is the extra tax imposed on diesel by the Feds. Supposedly this compensates for the extra wear and tear on the roadways caused by heavy 18 wheelers. However it is a typical 'law of unintended consequences' example, aimed at big trucks but hits all of us.