Like I said, when crude goes up, so does gasoline. When crude goes down, gasoline doesn’t. When crude goes up, we’re told that it’s because of price of oil per barrel. When the barrel drops, suddenly, there’s a lot more components to the price of gas and the barrel is small issue. Just sayin’…
Somebody somewhere is full of shit. On one side or the other, but somebody is sandbagging.[/quote]
The “rockets and feathers” effect exists, and it’s complicated.
I think it has a lot of causes, but one that not too many people mention is the motivation of individual gas-station owners. When prices are rising, their cost of replacement of inventory is going up immediately - thus they are cash-flow negative if they don’t charge enough to replace their inventory; when prices are falling, gas station owners can make more profits by trying to keep prices up, and they’re psychologically motivated to make their end customers pay so they avoid “losing” money on what they paid for the gas. The psychology is pretty much the same as in any other market - just look at how fast sellers were raising home prices during the bubble, and how slow even motivated sellers are to cut house prices.
[quote]kneedragger79 wrote:
The price of diesel is much higher than gasoline, all while two gallons of farm diesel are derived from the same stock that creates one measly gallon of unleaded gasoline. I personally agree with pat, someone is full of shit. Back in the '90s diesel was significantly cheaper than gas, now the inverse. Why?[/quote]
Also the diesel you get at the pump for your truck is ULSD (Ultra Low Sulfur Diesel), it has less oil in it. Newer trucks that are driven on the road can handle it fine but tractors used in the field can not.
I would really appreciate material that is honestly applicable! No worries though ; )
There are more diesel pickups than 20 years ago, I agree yet that does NOT explain why gas is less than diesel, all while twice as much diesel is produced with every one gallon of gas. The number of gas vehicles still far outweighs diesel vehicles. Do you understand the point I am making?
[quote]reddog6376 wrote:
[quote]kneedragger79 wrote:
The price of diesel is much higher than gasoline, all while two gallons of farm diesel are derived from the same stock that creates one measly gallon of unleaded gasoline. I personally agree with pat, someone is full of shit. Back in the '90s diesel was significantly cheaper than gas, now the inverse. Why? [/quote]
Farm diesel is significantly cheaper because it does not have as much taxes applied to it, primarily highway tax, because it isn’t used on the highways. Diesel prices have been driven up by demand. How many diesel pick-ups did you see 20 years ago compared to today? [/quote]
This is from the second sentence on the opening page. “Diesel exhaust is known to cause cancer, is associated with asthma, and is a major source of smog.” BULLSHIT!! Diesel is very well dirty, to our eyes. Yet diesel produces significantly less [none in the science sources I have seen] amount of free radicals. Combustion of gas in every gasoline engine burns the C chains incompletely, producing high levels of hydrocarbons. These are the babies which are thought by most to eat our ozone. Free radicals being the key! Exhaust gases from diesel is unburned carbon, heavy particles in relation to other particulate in the air. Carbon dust is bad when directly inhaled yet I do not just suck the fumes of my diesel or any other on the road today.
American problems are different than the EU, find applicable page please.
Oh but I do!! Highway tax on diesel fuel is the exact same for my pickup as a big rig. In many large truck stops, the more fuel you buy the cheaper the cost.
[quote] reddog6376 wrote:
[quote] kneedragger79 wrote:
Someone please explain to me why I must pay the same highway tax as an eighteen wheeler which obviously wears groves in the road surface. I would honestly like to understand these conundrums.[/quote]
You don’t. Truck Taxes and Revenue – Road Funding: Time for a Change – Mackinac Center [/quote]
edit not sure why the quote function is acting up, but I am trying ; )
I realize this :o ] However a pickup do NOT need the ULSD. Why not produce a cheaper fuel for a pickup and a large truck? BTW I am just curious ; )
[quote]lanchefan1 wrote:
Also the diesel you get at the pump for your truck is ULSD (Ultra Low Sulfur Diesel), it has less oil in it. Newer trucks that are driven on the road can handle it fine but tractors used in the field can not.[/quote]
[quote]kneedragger79 wrote:
I realize this :o ] However a pickup do NOT need the ULSD. Why not produce a cheaper fuel for a pickup and a large truck? BTW I am just curious ; )
[quote]lanchefan1 wrote:
Also the diesel you get at the pump for your truck is ULSD (Ultra Low Sulfur Diesel), it has less oil in it. Newer trucks that are driven on the road can handle it fine but tractors used in the field can not.[/quote]
[/quote]
[quote]kneedragger79 wrote:
I would really appreciate material that is honestly applicable! No worries though ; )
There are more diesel pickups than 20 years ago, I agree yet that does NOT explain why gas is less than diesel, all while twice as much diesel is produced with every one gallon of gas. The number of gas vehicles still far outweighs diesel vehicles. Do you understand the point I am making?[/quote]
Yes, it does explain it. Diesel demand has increased faster than gasoline demand, therefore the price of diesel has increased faster than the price of gasoline. Simple supply and demand. The fact that the US taxes diesel more than gasoline doesn’t help.
I can’t speak to whether or not diesel is worse for us than gasoline (I think most of that is crap anyway) The point was the diesel consumption went from 4% of total fuel consumption to 15%. Increased demand.
It is a fungible commodity. Increased demand in the UK (or China, or India) will cause the price in Phoenix to increase.
Yes you pay the same tax at the pump, but you don’t pay the Heavy Highway Use Tax, Multi-state registration fees, 12% sales tax on the purchase of a new truck or trailer or the Federal excise tax tires. In short, you don’t.
[quote]kneedragger79 wrote:
I would really appreciate material that is honestly applicable! No worries though ; )
There are more diesel pickups than 20 years ago, I agree yet that does NOT explain why gas is less than diesel, all while twice as much diesel is produced with every one gallon of gas. The number of gas vehicles still far outweighs diesel vehicles. Do you understand the point I am making?[/quote]
Yes, it does explain it. Diesel demand has increased faster than gasoline demand, therefore the price of diesel has increased faster than the price of gasoline. Simple supply and demand. The fact that the US taxes diesel more than gasoline doesn’t help.
I can’t speak to whether or not diesel is worse for us than gasoline (I think most of that is crap anyway) The point was the diesel consumption went from 4% of total fuel consumption to 15%. Increased demand.
It is a fungible commodity. Increased demand in the UK (or China, or India) will cause the price in Phoenix to increase.
Yes you pay the same tax at the pump, but you don’t pay the Heavy Highway Use Tax, Multi-state registration fees, 12% sales tax on the purchase of a new truck or trailer or the Federal excise tax tires. In short, you don’t.[/quote]
Permits for those trucks are phenomenal , it costs over a thousand dollars to fill a truck up