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Originally Posted by Wagner
Still if that were true, it is percentage based. What would cause the escalation to surpass gas prices, then escalate at a higher rate then gasoline?
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Well, it could be that the basics of supply and demand are at work, meaning that production is down (since diesel production is a fixed % of gasoline for a given refinery), while demand is up. Add to that all the refinery investments to convert to low sulphur diesel in North America. It will require a step change in refinery design and construction to get a higher % of diesel per barrel of oil, which means that the sale of diesel passenger car vehicles is likely to cause further refinery revisions, with corresponding price increases. Expect diesel to continue to outpace gasoline for the next few years.
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