Why are fuel companies charging more for diesel than for Gasoline when it is so much cheaper to make?

Question

Why are fuel companies charging more for diesel than for Gasoline when it is so much cheaper to make?

Answer 1

supply and demand, its simple economics.  During the winter,heating oil displaces the production and supply of diesel, and They want to make a profit, as much as they can.

Answer 2

High diesel prices are annoying me as I bought a car that runs on diesel 2 years ago. It is complicated but basically (like everything else in economics) boils down to supply and demand. The last few years diesel has been higher than gasoline, but this is the first time in history that has happened. Here are some key factors in play right now:

1. New ultra-low sulfur diesel rules have made it harder and more expensive to process diesel.

2. The Northeast uses fuel oil for a lot of heating in the winter. Diesel production gets shifted partially into fuel oil production resulting in a smaller supply of diesel in the winter and early spring.

3. Diesel cars are becoming more popular in the United States.

4. Increased demand for all oil products including diesel in China.

5. Europe uses a lot of diesel in their cars and trucks. They therefore have an excess supply of gasoline from their refineries that they are shipping to the United States. This increases the supply of gasoline without affecting the supply of diesel, thus helping to create a difference in price between the two.

6. You say diesel is easier to make than gasoline. That really just isn't true for most of the crude oils we are processing.

Answer 3

Diesel is dearer because the government caught on to the fact that people where changing to diesel as it was cheaper.

The government saw it as something to to generate more revenue.

Answer 4

Here's a better one.  Why are Arab countries who hold 75% of the world's oil reserves charging more today than they did in the 50's, 60's, 70's, 80's and 90's, when it cost more to make?

Answer 5

more diesel is used than petrol.

Answer 6

I live in thailand diesel is about 33 baht a litre that = 50 pence a litre (uk) hows that for a" third world country"