Why does diesel cost more than gasoline?

Discussion in 'Trucker Taxes and Truck Financing' started by -insert name-, Aug 30, 2012.

  1. rollin coal

    rollin coal Road Train Member

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    Would definitely like to see a diesel revolution in the auto industry here. For the most part people here tend to think of diesels as smoke belching underpowered dirty vehicles. Back in the 80's when all a person could get as a diesel was a Nissan or Toyota mini-pickup with a naturally aspirated diesel that was, for the most part, true. Although those little pickups, underpowered as they were, got great fuel mileage and you could not wear them out. Then GM tried to produce diesels based off their gasser V8's which was a disaster. Only expensive imported European cars back in those days had reliable turbo diesels. Don't know if the mentality will ever change but there have been a few clean diesel options here in the states in recent years - Volkswagon and Jeep come to mind. Back in '07-'08 Dodge had plans to introduce a '10 model 1500 turbo diesel Ram pickup - but the economy tanked and those plans were shelved.
     
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  3. FozzyNOK

    FozzyNOK Road Train Member

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  4. SierraMike

    SierraMike Bobtail Member

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    This. +1. ULSD has made diesel fuel noticeably more expensive.
     
  5. cowboy_tech

    cowboy_tech Road Train Member

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  6. king Q

    king Q Road Train Member

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    Mi wife just got a new car.
    Same make same model with same size engine as her previous car that she kept.
    The new one is diesel and the older one gas.
    The diesel will run circles around the gas car.

    What you have to remember is that unless you do more then about 25 000 miles a year it usually does not make economic sense to run a diesel.They cost more to purchase and if you keep them for many years they cost more to repair.
     
  7. NewNashGuy

    NewNashGuy Road Train Member

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    Yeah I remember back in the early 90's when diesel prices were way lower than gas.
     
  8. Oi!

    Oi! Road Train Member

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    You can thank the EPA for not having a "diesel revolution". In the "land of the free" emission laws are tougher than in "socialist dictatorships" like Europe making building diesel power cars for you and I a very unprofitable idea for many reasons.

    BUT, the europeans are coming to help, so as gas prices to through the roof and wages stay the same, more and more people are going to start worrying about effiency.

    I can't wait for a Grand Cherokee getting 30+ mpg.
     
  9. Ghost Ryder

    Ghost Ryder Road Train Member

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    There are a few reasons.

    1) Refineries in the US are optimized to produce gasoline
    2) Overall demand for diesel is increasing while overall demand for gasoline is decreasing
    3) The introduction of ULSD in '08 prompted refineries and fuel stations to spend billions of dollars upgrading their facilities to accomodate the new fuel standards set by the EPA
     
  10. 25(2)+2

    25(2)+2 Trucker Forum STAFF Staff Member

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    I don't now if it has been mentioned here in this thread, but oil companies use the same tankers to haul diesel fuel back to Europe that they haul gasoline and crude to and fro, and being multinational, they can trade between different divisions of the same company in different nations, moving the products around to market them at the best prices for the total.

    Gasoline is moved from Europe to here and diesel is moved from here to Europe, more demand for gas here and diesel there, and there is demand for ethanol, and other by-products of that production, so the oil companies make money on that, too.
     
  11. crzyjarmans

    crzyjarmans Road Train Member

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    Gas power motors are not durrable enough to handle the weight hauled by rigs, JMO
     
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