Why is Diesel so Expensive? I have read the answers, still doesn't make sense?

Question

Prior Answers:1. Increased taxes on diesel - Why now? OTR trucks have always used diesel fuel, ten years ago it was .99/gal in California, truckers and consumers were not being exploited then. 2. Removal of sulfur- what does this add to the overall refinement process? does it really add $2.00 + to the cost of fuel? I don't buy it. 3. Only a small % of df is obtained from a barrel- really? No joke I ran my ford 6.9 diesel on filtered used engine oil with a little diesel in it, it ran fine.

Answer 1

According to what I've heard and read in the trucking industry, diesel is so much higher than gasoline because of the relative WORLDWIDE supply and demand for diesel.  

Other countries, like India and China are building new infrastructure and industry at record rates- new highways, railroads, businesses.  This drives up the demand for diesel since it is needed for large construction vehicles, etc.  Plus, demand for diesel is higher than gasoline in Europe, where they have more passenger vehicles that use it.  The worldwide fuel supply is controlled by OPEC; so if demand for diesel is high in other countries, it affects the global supply and thus, the prices in America.  

http://blogs.cars.com/kickingtires/2008/...

And just because there's more demand for diesel, doesn't necessarily mean OPEC can (or will) increase supply.  Most refineries are running at maximum capacity as it is.  So naturally when demand is high and supply is limited, prices soar.  

The rising prices of fuel have many factors, such as geopolitical tensions and the politics, taxes, etc of various countries.  It's not possible to paint a simple black and white picture of it....but many truck drivers, including myself have been asking your same question for several years now, and this is the answer I've heard from trucking magazines and truck related talk-shows on XM Radio.  Hope this helps :)

Answer 2

because all they want is money, money, money.

Answer 3

Part of it's taxes, part of it is the move to ultra-low sulfur diesel, and part of it is just supply and demand. Demand for diesel is actually increasing in countries like India, China, and many European countries.

Answer 4

Hi!!

    It has to do with heat energy. One gallon US of regular unleaded gasoline contains 124,000 BTUs of heat energy. One gallon US of #1 diesel contains 139,000 BTUs of energy. Considerably more!! That explains the higher price and more  mileage per gallon!

  You also have to remember that a barrel of crude contains  fixed portions of gas, diesel, kerosene etc. You just don't go to the refinery and say,   "today, I will refine diesel, tomorrow we'll do gasoline."  Most of the time, diesel supplies are lower than gasoline, thus the oil companies can get more $$ for diesel.  

Answer 5

Honestly, DUNNO.

I remember when it was 69 cents/gallon and regular was $1.20  They have cleaned it up to run cleaner but

the big price jump, to same as reg or more, came before that.

Answer 6

Its higher grade fuel, so simply it cost more for companies to produce, thus it cost you more

Answer 7

Supply and demand. About 92% of oil refinement in the U.S. goes toward gasoline so diesel always takes a back seat, thus, lower demand for the product equals lower competition which equals higher costs at the pump. This is all set to change in the next three years with the huge influx of diesel powered vehicles set to flood the American market. Likely we will see diesel costs drop dramatically.