I understand the supply and demand....but the cost to produce diesel is so much less it should not cost more than gas. Greed is more like it.
Why does diesel cost more than gasoline?
Discussion in 'Trucker Taxes and Truck Financing' started by -insert name-, Aug 30, 2012.
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sorry guys but diesel costs more to refine from crude, even worse when the feds made ulsd a law, now there is one more process to the refining. taxes are alot more on over the road diesel other wise it would be very similar cost to unleaded. Again supply and demand is a term like "backhaul" neither should be a term used. BS totally
Think about this, crude oil actually cost zero....yes just like water the only cost of the actual product is the labor and equipment to pump it. 100 years ago crude oil in Iraq was the same price today. the crude/natural product it self is free.
labor rates are very low right now, so where is all the "mark up" on oil coming from?
you can bet us bottom feeders will never know!NDBADLANDS Thanks this. -
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Diesel takes much less to refine, but like truck stops they want to rape us. They get away with it. Diesel costs 1/3 per gallon less than gasoline to refine. Like whiskey, smokes, or food. They got it, we need it. Diesel should be way less than gasoline. Camels don't run on oil.
NDBADLANDS Thanks this. -
[h=2]"Why is the diesel price so high?[/h]There are certain mysteries surrounding the diesel price. Why is diesel more expensive than petrol, when it used to be the opposite? Doesn't diesel require less refining than petrol and less crude oil to produce - so shouldn't it therefore be cheaper? And how come diesel's cheaper than petrol on the continent in, say, France?
A commonly cited answer for this is tax and, yes, the high cost of diesel has plenty to do with tax. Some 75% of your £1.43 goes straight into the pocket of our glorious government, which then uses it to invest in things like NHS IT systems or RBS.
But tax doesn't explain the relative expense of diesel. The UK duty rate for the road fuels is the same, whether it's unleaded petrol, diesel, biodiesel or bioethanol.
On the continent, however, various diesel subsidies in certain countries have led to the discrepancy in prices.
As for refining, there are some misconceptions. Old-fashioned diesel requires less crude oil to produce, and less refining than petrol. Hence the heavy clouds of black smoke you used to see behind a bus or a lorry.
But the modern 'clean' variant - ultra-low sulphur diesel, made to modern established standards, and now the norm - requires a more complex refining process. You can refine less ultra-low sulphur diesel from a barrel of crude than you can petrol, unless you use some extremely expensive refining processes.
There have also been issues at the Coryton refinery in Essex, leading to a slight disruption in supply."
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