Why is diesel fuel so high, I thought it was cheaper to refine?

Question

Why is diesel fuel so high, I thought it was cheaper to refine?

Answer 1

Anything we try to do to cut back on consumption will be thwarted by the oil companies. I find it real hard to believe that there isn't an alternative to petroleum gasoline. I'm sure someone has it figured out, but the minute they come forth, they will be killed.

Answer 2

higher fuel tax on diesel because of it's mostly used in commercial vehicles

Answer 3

This time of year there's more demand for fuel oil to heat homes which is basically the same as diesel fuel....higher demand = higher prices.

Answer 4

Diesel is one fraction of crude that is recovered during the refining process.  In addition to running diesel vehicles, #2 oil is used in home heating.  This causes higher demand during the winter months.  The primary and least known reason for the increased cost is that European diesels represent 40+% of vehicles on the road.  They cannot produce enough diesel to run all their vehicles without having a surplus of gasoline refined from the same crude.  Since we are a gasoline dependent country and Europe is diesel dependent, we ship diesel to them in exchange for the gasoline they don't need.

While this holds down the cost of gasoline here by using what is essentially surplus refining product, we create a scarcity of diesel, driving up prices.

Answer 5

Supply and Demand is the simple answer.  Every year for the last 4 years heavy truck use has increased at a faster rate than the supply of diesel.  The natural response is to raise prices.  Commercial diesel trucks have a very inflexible demand for the fuel.  Without diesel they can't do thier work.