Why is disel fuel more expensive when just a short time ago it was fifteen cents less than regular gas?

Question

Are we just getting hosed another way?

Answer 1

Gary,

Diesel fuel has risen in cost due to a number of factors.  The other responses don't cover the true reasons for the increase.  With the new ULSD (Ultra Low Sulfur Diesel) standard, removing the sulfur contaminant from diesel fuel has made refining it more expensive.  (There is no additive to make it burn cleaner...).

During the home heating season, diesel costs more, because #2 home heating oil is diesel fuel.  Also, winter diesel is typically about 30% kerosene, to keep the diesel from gelling in your fuel tank, which straight diesel will do at about 20 degrees F.  This adds cost to the diesel.

Primarily, diesel is getting more expensive here, because we're sending some of our diesel to Europe, where over 40% of personal vehicles are diesel powered.  Europe cannot refine enough diesel out of crude oil to meet their needs and we cannot refine enough gasoline out of crude to meet our needs, so we exchange what is the "surplus" product.  This keeps gasoline costs lower here and diesel costs lower in Europe.  

This foreign demand on domestic diesel has caused the diesel price to climb as inventories drop and demand continues to climb.  The surplus kept diesel prices down, now surplus European gasoline is helping to keep our gasoline prices down.  Yes, they've gone up, but they would have gone up higher without this cooperation.  Crude oil has increased almost 50% in the past year, but gasoline prices have only gone up about 25%.

Diesel is still a more economical fuel choice than gasoline, since the per mile cost still favors diesel, but the gap has closed quite a bit in the past year or so.

Answer 2

They are blaming it on the heavy use for home heating. It still costs much less than gasoline to refine. Hose job? More than likely.

Answer 3

The additives (federally mandated) to make it burn cleaner in road vehicles .  You can still get what's called off road diesel  (used it tractors and such) and it is much cheaper.