Why does Disel fuel cost more? When its cheaper to make than gasoline.?

Question

Why does Disel fuel cost more? When its cheaper to make than gasoline.?

Answer 1

The price of the product has nothing to do with the cost of production and everything to do with how much people are willing to pay.  If people are not willing to pay enough to sell it profitably, it will not be sold.  People are willing to pay more for diesel fuel because a litre of diesel contains more energy than a litre of gasoline, so even at a higher price it's still cheaper to use diesel.

Answer 2

Don't know...but it makes for a good argument for cracking your own fuel out of vegitable oil...which Mr. Desiel intended when he created his engine back in the very late 1800's. :D

Answer 3

This was a Best Answer on the exact same question.  Thanks to Wired for Sound for an excellent response!

As of September 2006, Ultra Low Sulfur Diesel (ULSD) fuel was transitioned in as the only fuel available for road use diesel engines. The reason for this was with it's lower sulfer content, it produces less emissions and is mandantory for all 2007 diesel engines produced for use on the road in the US.

The refining process requires more steps to remove the extra sulfer which is normal in crude oil. Hence... the extra cost to the consumer.

It has been my experience with ULSD, that fuel economy will drop with the use of it as well and the added expense of it at the pump. The typical double wammy. Pay more for less.

Low Sulfer Diesel (LSD) has as much as 500 parts per million (PPM) of sulfer content and USLD has 15 PPM.

I hope I have helped answer part of your question... The link below will give you more information regarding ULSD.

3 months ago

Source(s):

http://en.wikipedia.org/wiki/Ultra-low_s...

30 years and 2.5 million accident and violation free miles in a truck. Truck driving instructor since 1980.

Answer 4

It's a by-product of normal gasoline production.  So, you don't get as much of it from the refining process as you would, say, gasoline.  Therefore, due to accounting principles, more cost (overhead) goes into the production of 1 gallon of diesel than in gasoline.

I still remember when it was introduced for automobiles in the 1970's as an "answer" to the gas crisis at the time.  Based on how it's produced, how could it be the "answer?"  Much like Ethanol- which is the "diesel" of today.  All it's doing is increasing the price of everything else.

Answer 5

so people will ask questions about it :-)

Answer 6

Diesel is being bought up in huge volumes by the Chinese government.  China, is on a huge building boom and they need the diesel to run equipment  and they are driving up the cost of a lot of thing ...not just Diesel.

Answer 7

Supply and demand with a sprinkle of collusion and price gouging by Bush & Co..

Answer 8

Great question, we wonder this as well.

Answer 9

Because it's also used as heating oil...

Answer 10

Diesel is a crude oil. It is more demanded than gasoline with is 60% crude oil, Diesel is 85% crude oil. Crude oil is expensive abnd since diesel uses more of it is costs more.

Answer 11

supply and demand. on top of that how does the fuel get to us, by  a diesel truck.

Answer 12

Oil companies want people to keep using Gasoline - so they use their weight in washington to get the price of diesel raised.