Up to about a year and a half ago, deisel fuel had ALWAYS cost less than gasoline, which made sense, since deisel is a less-refined petroleum product, that takes less processing to produce. Well, now Deisel is running up to 25% MORE than gasoline. This little fact really afffects our economy, and the price of everything else much more than the cost of gasoline, since EVERYTHING is delivered by trucks, and trains that run on .. guess what? Right.. deisel fuel. So, what is the explanation for the exhorbitant rise in the cost of deisel? Pure greed? Price gouging? I would really like to know.
 
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18 Comments on Can Anyone Explain Why Deisel Fuel is Now More Expensive Than Gas?

Kevin,

Can anyone explain how the price of a gallon of gas is 50% cheaper in Mexico?

The media explains the price of gas has risen do to demand in China and India,yet gas prices in Venezuela are at $1.00 per gallon..

The BUSH ADMIN is to blame!!!

That`s why! 

06/18/2008 07:53 AM by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc. Broker/Owner. )


It really is simple , pure greed ,price gouging, price fixing , and speculation driving up the price. Since diesel is used by trucks quite a bit the big guys figure business will pay and pass the cost along to you. In your case you are paying more and getting a pass along price increase. Lets hear it for big oil and their friends in Washington. And since we do not want to sound paranoid, let me just say I beleive the man in the white house being from oil state Texas and the currnet situation have othing to do with each other. But then again I believe in the tooth fairy

06/18/2008 07:53 AM by Charlie Ragonesi Big Canoe homes, Jasper ,Ball Ground,Benttree,Dahlonega (All Mountain Realty)


Santa Claus told me that his sleigh runs on liquid sunshine, (not deisel fuel), so we will still get presents this year, but not from the Bush administration. So much for the stimulus check.

06/18/2008 08:08 AM by KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector (H.I.S. Home Inspections (Summit, Stark Counties))


Would not just blame the Bush administration for all of the demise.  Do you have bike you could pedal to showing?  One with a little wagon behind it to tour guide the neighborhood...hard to do with snowstorms and two feet of white stuff in driveways of properties you want to show! 

06/18/2008 08:15 AM by Andrew Mooers | Northern Maine Real Estate / Aroostook County Broker (MOOERS REALTY)


Kevin, I have this idea that "conservation" is causing the rise of gas and diesel prices.  If we use less, the gas companies have to raise their prices to maintain profits:)  If gas users are conserving too much then the rise in costs has to move onto diesel where conservation is more difficult.  Oil companies are recording record profits I hear.  Until profits can be reduced, conservation isn't going to help too much.

06/18/2008 08:40 AM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


The cost of the war is killing this country,which has a ripple effect on our nation.

McCain wants to bury this country by continuing a game plan that is unfit for this country.

06/18/2008 10:00 AM by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc. Broker/Owner. )


Diesel is becoming more in demand as a percentage of use. Also capacity to produce diesel from crude oil has not kept up with demand. other country are subsidizinggas/diesel. Hope fully this will at least come to a plateau.

Bonner

06/18/2008 10:20 AM by Bonner Thomason CRS, ABR, GRI, e-Pro (Keller Williams Realty)


Thanks everyone for your ideas and comments. Overall, I think gas and deisel usage has gone up, and will continue to rise. The capacity to keep up lies with the oil compaies and the crude producers. They are the one with the stacked deck. The consumer will never win this one without direct government intervention.

06/18/2008 12:36 PM by KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector (H.I.S. Home Inspections (Summit, Stark Counties))


I had a blog comment all typed out but decided not to post. All this is just wearing me out. I drive a diesel, when I purchased  my truck  diesel was cheap; I thought I was doing the right thing. Ooooops! I hope its not too late to turn this situation around.

06/18/2008 08:40 PM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


I do not know, It must be either greed or the old supply and demand routine...

06/19/2008 04:50 AM by Michael Thornton - Nashville, TN area Home Inspector (Complete Home Inspections, Inc.)


Yea, I used to drive a deisel too, thought it was more economical at the time. Now, it's back to gas.

I am seriously looking into the hybrids now.

06/19/2008 05:06 AM by KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector (H.I.S. Home Inspections (Summit, Stark Counties))


Michael - I think it all three; greed, supply and demand. There is enough blame to go around for everyone. That's what we get for not taking care of ourself. Maybe we should have been making  demands way back when and we would be further along looking for additional avenues for fuel. Now we have to play catch-up; in the meantime the whole country suffers.

06/19/2008 07:56 AM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


I underestand it is road tax.  I used to own diesels...in fact I owned 4.  It was a lot cheaper then.  Then they placed a lot of tax on top of them.

06/19/2008 08:06 AM by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta)


Kevin - supposedly diesel is so much more expensive than gasoline is because of the demand for gasoline. Diesel has always been in less demand that gas, and yes, it is less refined. However, supposedly, production costs are higher because of scale of production. Kind of like as more people by unlimited product, unit production costs are reduced. Well, with diesel production costs are supposedly rising. Two years ago, when gasoline and diesel were both approaching and passing $2.00/gallon there were predictions that even if the price of gasoline fell, diesel wouldn't, for these very same reasons.

Does it make sense? I don't know.

Does knowing another reason ease your pain? If you are anything like me, certainly not.

As for Scott, study economics of those countries. In Europe, gasoline costs more than twice as much as here. Perhaps we should give Bush credit that we aren't paying that much.

06/19/2008 08:16 AM by Mike Saunders (Keller Williams Realty - Greater Athens)


All I know is this, since my husband is in the truckilng industry... The transportation companies charge a "fuel surcharge" to all it's shippers.  Every Monday they recalculate that charge depending on the current price of diesel.  The shipper, in turn, must include the higher cost of shipping when pricing their product. 

06/19/2008 09:13 AM by Susan McQuaide (Keller Williams)


Kevin, great question!  The high gas prices effect us all in so many ways.  Our country needs some relief from this soon. 

06/19/2008 11:31 AM by Debra Kukulski-GRI;ABR;RECS;e-PRO Real Estate Expert Northern Illinois (Re/Max Unlimited Northwest)


Hi Kevin - tonight I heard a former Reagan advisor say that he thinks we should sue OPEC...I am open to all suggestions that would restore sanity to gas prices. This industry is getting away with economic terrorism!

06/19/2008 09:31 PM by Dawn Maloney, ABR (Geneva Chervenic Realty)


Dawn,  I think you are right that something drastic should be done. We have done little, if anything to prevent ourselves from being robbed by the middle east. Thanks for stopping by.

06/20/2008 03:23 AM by KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector (H.I.S. Home Inspections (Summit, Stark Counties))


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Inspector: KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector (H.I.S. Home Inspections (Summit, Stark Counties))
KEVIN CORSA H.I.S. Home Inspections Stark & Summit County, OH Home Inspector
Canton, OH
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