October 25, 2005

  • Who remembers when diesel was significantly cheaper than ordinary gasoline?

    The diesel-burners got burned, didn't they?  This afternoon
    regular was $2.50/gal at the Shell station near us, while their diesel
    was a whopping $3.29/gal. 

    What's accounting for the enormous price difference?  Anyone know? 

Comments (4)

  • I read an explanation, but I'm still not sure I totally understand.

  • I am dismayed at the price of diesel. Here gas prices for 85 octane run about 2.65 a gallon, 2.75 for 87 octane. Diesel, on the other hand is running about $3.40. I don't know what is accounting for the enormous price difference, but I do know that truckers are not going to be able to continue hauling stuff and still be able to make any sort of living. And prices for everything will go even higher. It's depressing.

  • Diesel still gets significantly higher mpg, though, right?

    I think diesel requires more refining, and if the main problem we're having is a refinery/supply issue, then that would explain it, I guess.

    Still isn't pleasant for you diesel owners, though!

    And golly, still 2.65? We're down to 2.21 - 2.29 around here.

  • Oh, also, I think the oil companies are under significant social pressure (and perhaps the threat of government involvement) to keep the price of gasoline down. Therefore, they're allocating most of their capacity to refining gasoline, thereby limiting the supply of diesel and driving up the price. I hear home heating oil is getting short shrift for the same reason. I guess what shows up on a monthly bill causes less clamor than what you see driving by the gas station every day and filling up every few days.

    It's the effect of having far more of the population care and complain about the price of gasoline than the price of diesel.

    At least, I think that's what's happening.

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