Why is diesel fuel so much more expensive than regular, when I hear it is the cheapest to refine?

Question

Why is diesel fuel so much more expensive than regular, when I hear it is the cheapest to refine?

Answer 1

Because of the biofuel movement.

Have you noticed that you used to be able to get certain cars in either the diesel or unleaded version and now you can't!

Propaganda, pure propaganda.

Answer 2

Here in Australia Diesel was always cheaper 6-7 years ago it was 20-30cents cheaper then unleaded now it is 20-30cent more per litre this happened about the same time we started to import large numbers of small euro diesel cars like the Golf.

The current price difference means there is no saving in buying a diesel car here anymore. The only reason for this is fuel companies wanting to keep profit margins up.

Answer 3

It is called supply and demand.

Answer 4

Historically, diesel has been cheaper, though this is changing.  Still, during the summertime, the process are a bit closer, diesel usually, at least in my area, being the same price as mid-grade gasoline.

Several reasons for the difference-

--Diesel fuel competes for petroleum distillate products home heating oil, as they're rather similar, meaning that in the winter there's tremendous demand for this product, raising prices.

--Since there are fewer diesel cars in the US, there's a less robust system of distribution and competition as there is for gasoline, which is available in many more places (particularly in nearby, competing outlets).

--The changeover to Ultra low sulfur diesel has incurred extra refining costs, some up front, and some that will remain.

--The federal excise tax on diesel is 6 cents higher.

--Worldwide demand for diesel is growing rapidly, as emerging countries industrialize.

It is important to remember that even though the price per gallon is greater for diesel, it is typically run in more efficient engines than the comparable gasser, meaning that the cost per mile is still lower.

Answer 5

The answer is politics.  Most users of diesel fuel are companies, using trucks to deliver things.  If politicians increase the tax on gasoline, the consumers vote them out.  If they increase the tax on diesel, the consumer doesn't see the increase.  The companies do not absorb the increased tax, they raise their prices to maintain their profit.  The consumer grumbles about higher product prices but doesn't know he has paid increased petroleum taxes.

Answer 6

Have you seen the increase in trucks on the road, supply and demand yes your correct it is cheaper dirtyer and takes less refineing.

Answer 7

at one time it was cheaper

now it cost more because they have to remove the sulfur

plus change the chemistry of it so that it will burn cleaner.

all this cost money.

look at the laws on the pollution levels of diesel fuel now and 20 years ago.