Slownsy
USA
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Can someone please explain how come they can now supply disell for less than gas.
Frank
Frank
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bagman
Land Of Milk & Honey!
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Joined: 04/01/2001
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I can, it cost the oil companies less money to process diesel fuel than gas. It is high taxes on diesel fuel that makes it more expensive in many states!
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Slownsy
USA
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I don't believe the taxes has dropped. Any other ideas.
Frank
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transamz9
Lawrenceburg Ky
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It is supply and demand. Right now (Summer months) we use a lot of gas. Traveling, boating, etc. We don't use heating oil (basically diesel). They raise the price of gas this time of year to offset the costs of overtime to refine the greater quantity and also the more they make the more breakdowns they will have. During the winter months we use a lot more diesel and less gas which in turn drives the cost of diesel up and gas back down.
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DelCamper
Delaware
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I put in almost 30 years in an oil refinery as an operator and supervisor. The refinery requires no more man hours running at high rate verses low. Actually the process units run the best, known as, "The Sweet Spot" at about 90% of capacity.
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DelCamper
Delaware
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bagman
"I can, it cost the oil companies less money to process diesel fuel than gas. It is high taxes on diesel fuel that makes it more expensive in many states! "
The cost of refining is minimal outside of rate occurrences like the capacity being taken off stream in the aftermath of a hurricane. Diesel fuel is actually more valuable because its denser by about 20% relative to gasoline so you get less BBLs or diesel out of a BBL of crude than you get gasoline.
The process units are designed to make more gasoline than #2 oil (diesel / heating oil). They have some "wiggle and jiggle" but not too much. If x amount of gasoline is made then x amount of diesel is made too regardless of market demand.
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DelCamper
Delaware
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To explain further to make enough gasoline for summer demand they inadvertently make too much #2 home heating oil which is sold as diesel with the addition of some additives and minor "tweaking" in the process.
If your home heats off fuel oil buy it in the summer. Of course with the very volatile price of crude, which has always been a black hole regarding its cost, that might not always be the case from a crude oil standpoint. For this year its a good move.
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Hannibal
Tampa Bay Area
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It's interesting to read posts by someone who actually knows the business. Thanks for posting this DelCamper.
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transferred
CA
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Joined: 10/12/2010
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Diesel now an average of $1.20 cheaper per gallon than gasoline in L.A. county.
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smcrea
Maryland
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Hi All,
I have got to add my 2 cents worth to this gas vs diesel discussion. Having just got my first diesel (a 2015 F350) and having towed our trailer with a Suburban for 5 years I have to say that I am totally awe struck by this diesel!
All I can say is it's dangerous!... you forget that you are towing anything! We just returned from our first trip. We went almost 13000ft straight up in the rockies and the only time it dropped out of 6th gear into 5th was because a BMW slowed us down!
I'm SOLD.. I will NEVER go back to a gas engine for towing! :-)
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