News, $7 Per Gallon Gas Coming Soon?

[Wild Style]

i want to know why the hell diesel is so expensive. Are they creating the stuff with rare stuff like dragon fire and fairy dust?

[texdav]

Because the market for diesel is mostly in other countries and demand is high there.It is just like why not every station has diesel pumps here.Economics really.

[sunsprit]

Originally Posted by Wild Style

i want to know why the hell diesel is so expensive. Are they creating the stuff with rare stuff like dragon fire and fairy dust?

Because it's being sold on it's energy per gallon value, which is much higher than gasoline's energy content.

For many years in a lot of markets, gasoline was driving the market demand and diesel wasn't keeping up. So diesel was "dumped" at below it's comparable value to keep up with gasoline refining volume and sales.

Now that diesel is driving the market, in everything from mid-size transportation on up (and very close to JetA in the refining process), the gasoline market is secondary to the diesel. So, the marketing folks get to price diesel relative to gasoline, which is still in high demand.

Also, low sulfur diesel (mandated by the EPA) is much more expensive to refine than the older diesel formulations which are now off the market.

[Wild Style]

^^

that sucks! I am planning to buy a blutec diesel engine car in the not to distant future. May have to rethink that :S

[Mathguy]

This was a great thread showing how the media citing "some analysts" can often be full of it and pushing doom and gloom scenarios.