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diesel is so much more than gas...dont make sense

On my last wheeling trip diesel averaged roughly $3.30/gal. Refriggindiculous.

Between diesel and propane (drying) costs, I know of three farmers that are retiring early this year because it doesn't make sense to keep farming. The price of corn around here is so low that gov. subsidies are now in effect, and with propane 2x-3x what it was a year ago and diesel at it's current price...not many people around my hometown are going to turn a large (if any) profit this year.
 
Profits are up, but are profit MARGINS up? That is what the real question is. If the price goes up then the profit goes up, even if they still only make 10%. Example: You sell "X" for $100, and make $10 because you bought it for $90. A year later the international market drives up demand and your supplier now charges you $180 for "X" and you sell it for $200. Your profits just doubled but you margin stayed the same.

Two weeks ago I was paying just under one Euro a liter for diesel. That works out to about $4.80/gal + 3% surcharge (the surcharge is another rant, though).
 
Only if you don't drive anywhere near a check station.
10,000 dollar fine minimum if caught.
Just any FYI but not a risk I will take.

If you really want to save some fuel money make your own Bio-Diesel with waste veggie oil and chemical costs it is about 80 cents a gallon to make it. Equipment is 150 to 300 bucks to make it. Do any internet search and you will find lots of data. You can also run filtered waste veggie oil too if you set up your truck.
 
Not much difference here...

I paid 2.84 a gallon for diesel friday--regular gas was 2.39 a gallon!..it was 2.59 wednesday??..diesel was as high a 3.35 about a month ago,but dropped to the 2.80 a gallon range a few weeks ago here..

Home heating oil isn't much better,its now going for 2.10-2.30 a gallon,and its hard to buy less than 150 gallons for that price..I see no sense in trying to save a few cents to run it in my truck,and risk plugging the fuel filter--plus the fact its illegal,though I know it is never checked anywhere on light trucks here..

If prices stay over 2 bucks a gallon for gas and diesel,it wont be long before another depression occours..between fuel prices,the hurricanes,and all the other stuff going on in the USA now,it wont take much to put a lot of people out of work,and on skid row..many are nearly there already..and our leaders wont do a dam thing about it,because they are getting rich off it,while its killing us.. :mad:

9.9 BILLION profit in 3 MONTHS??-(at THE worst time possible,during natural disasters??)-something should be done--thats robbery,pure and simple.. :mad: :mad: :mad:
 
isn't diesel and heating oil about the same stuff. I have never used heating oil living in the South. I just thought that this was the season people buy their heating oil so diesel always bumps up a bit around now.
 
Lets also look at the fact that diesel production has not increased but demand has grown faster percentage-wise than gasoline. Supply - Demand guys.
 
news

I was watching the news for a change and I guess the feds are looking into that 9.9 billion that exxon and other oil companies posted. Looks a little fishy to them that oil supply is back to norm but prices are still high. Price gouging anyone? The oil industry shot back saying the 3 cent price drop of a few weeks ago led to that profit, yeah right.
 
The market was flooded with gas to ease the consumers minds, driving the prices down.

All that flooding means they were not producing as much diesel, or pumping it through the pipeline. Right now diesel is in short supply. We are having a hard time getting enough to sell.

Our cost of diesel has dropped about $.40 in the last few days....It will take a while to hit the streets though....


I have been offering more and more Bio-Diesel to my customers lately. There are a few advantages that help them save money. The Bio-Diesel is cheaper right now, and there is a tax incentive to use the stuff right now. Some customers are seeing a + $.30 savings by running this product.
 
bigjbear said:
Profits are up, but are profit MARGINS up? That is what the real question is. If the price goes up then the profit goes up, even if they still only make 10%. Example: You sell "X" for $100, and make $10 because you bought it for $90. A year later the international market drives up demand and your supplier now charges you $180 for "X" and you sell it for $200. Your profits just doubled but you margin stayed the same.

Two weeks ago I was paying just under one Euro a liter for diesel. That works out to about $4.80/gal + 3% surcharge (the surcharge is another rant, though).
Click to expand...

This is understandable and I can't vouche for how much the people make before my guy buys it and sells to consumers. I do know for a fact that he was making 12 cents per gallon last year for each gallon sold. Arbitrary numbers but if he bought it for 1.00 he sold it for 1.12 now he pays 2.00 and sells for 2.04 so even at the higher cost there is not higher profit there is 8 cents loss in profit per gallon. He did have an increase in total volume sold. Say 1,000 gallons this year verses 750 last year but the increase in volume did not cover the loss in profit. So he made me more money last year selling less product.
 
Thanks to everyone buying imported goods, we've built up the economies of 3rd world countries to the point where they compete for the same energy resources we do.

China buys all of the refined diesel they can get their hands on. They don't have the rifining infrastructure in place, so they are willing to pay top buck for the finished product. If you were exxon, would you lower your prices in this situation? didn't think so.

Tom
 
Only if 'clear' diesel fuel was unavailable.

You also have to pay the road taxes on the red stuff for this use, negating the savings.
 
I've got 2 theories as to why Diesel is so much more expensive than gas right now

1) They're ass raping us

2) Due to the time of year, ther'es much higher demand because everyone is filling thier heating oil tanks for the winter. Once that demand subsides in mid November, prices should come back down to where gas is.

Mike
 
With the price difference, I am actully saving money driving the blazer (under 10 MPG in town) versus the diesel (about 15-16 in town).
 
9.9 BILLION profit in 3 MONTHS??-(at THE worst time possible,during natural disasters??)-something should be done--thats robbery,pure and simple..
Click to expand...

Sounds like supply and demand in a free market economey. WE are the ones who have put ourselves into this position. Collectivly, as a country, we are the ones who electiced our politicans, bought the goods we have, and made the choices about which energy sources to use, and which to ignore.

Bozowise is on the right track. There is more to look at than what one 1/4s profits were.
 
4by4bygod said:
Thanks to everyone buying imported goods, we've built up the economies of 3rd world countries to the point where they compete for the same energy resources we do.

Tom
Click to expand...

True enough, but buying American made alternatives is increasingly difficult. Take a look at the tag in just about every piece of apparel you own. See the word China anywhere? One of the last remaining American sock manufacturers closed last year, leaving us with next to no options for buying socks from anywhere but China. My point is, more "right wing extremists" need to wake up and realize that the current administration is doing NOTHING for American workers. Look at our trade deficits with other countries, especially China. Our gas prices are all a part of this vicious cycle. Flame away.
 
I thought diesel prices changed slower because of demand. I would think that gas stations would sell more gas than diesel, that would mean thier tank of diesel would sit around longer than gas. The diesel that was purchased at say $3.5 would sit in tank longer than gas. The gas tanks would be refilled more often than D. Each time a tank is filled the prices change, up or down. The D refill might be $3.00 per gallon but it moves slower, say 2x slower.
 
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