Interesting read RE Diesel!

[Meiac09]

$4.99 here
One would think the opposite, considering the majority of diesel used in the US is for trucking and other commercial interests

Anyone see the new BMW Commercial? "We're used to high gas prices!"
It said €8,75 or something on the sign, people here wouldn't get that its sold in litres over there

[AzNMpower32]

That price is about right though, when you convert gallons in to litres (1 US gal = 3.785 litres), and factor in the worthless USD.

So who wants to drive an X5 4.8i in Germany?

[JCL]

Originally Posted by Penguin

True. But then water is inherently more valuable than Gold, and salt is more inherently valuable than truffles.

If you are thirsty, or making Margaritas, sure. But context is everything. In the context of a discussion on the value of a liquid fuel, how is this relevant?

[QWKNESS]

I forget the percentages but out of barrel of oil you only get a few gallons of Jet Fuel, next is diesel, and the rest is gasoline and other lesser products. The switch to Ultra Low Sulphur Diesel combined with the cost of sweet light crude has driven up diesel higher than it should be. Down in Mexico you can buy diesel for $2.20 per gallon. I am going to drive my Dodge Diesel down there in the next few weeks and fill up. My main tank hold 35 gallons and my aux tank another 85 gallons. So filling up and subtracting the fuel I will use driving from PHX to MEX and back I'll still save well over $200 bucks for a few hours of driving, best of all my work will pay me mileage if I meet with a few customers on the way down or back...so should work out well. I wish I could haul more back but after 120 gallons you have to pay some taxes or other fees.

All in all if you do the calcs on the cost per mile gas vs. diesel even when diesel is nearly a dollar more expensive the diesel price per mile is slightly lower!

[Penguin]

Originally Posted by JCL

If you are thirsty, or making Margaritas, sure. But context is everything. In the context of a discussion on the value of a liquid fuel, how is this relevant?

It is relevant because it shows that it is not uncommon at all for things to be priced much differently than their inherent value, sometimes wildly different than their inherent value, e.g., Gold has been worth more than water for thousands of years, and is likely to countinue this way for the foreseeable future. So the fact that diesel contains more energy per unit volume than gasoline, is not a real factor in determining their relative prices.

If you have a difficult time making the connection, I'll give a simplier comparison for you... heating oil # 4 (Residual) contains more energy per unit volume than diesel, but despite this "inherent" higher energy value, it is cheaper than both gasoline and diesel, and is likely to always be cheaper.

Hope that helps clarify things for you.

[peacemf]

coo stuff
also diesel DECREASED in price here in Czech republic!!!
it used to be 34.50Kc now its 34.20Kc. (around £1.10)
Not much of a drop but still its something!!! and the price seems to be levelling off!!!

[Penguin]

Originally Posted by peacemf

coo stuff
also diesel DECREASED in price here in Czech republic!!!
it used to be 34.50Kc now its 34.20Kc. (around £1.10)
Not much of a drop but still its something!!! and the price seems to be levelling off!!!

I see where China just reduced their subsidies for diesel and gasoline, raising retail prices 18% starting Friday.

[Craig]

heating oil is the same thing as diesel. It's not low sulphur and it doesn't have the road taxes built into the price. That's why heating oil is cheaper than diesel. It's always been cheaper than diesel...

Craig

[JGQ]

I think the big picture here is not the cost of Diesel but rather the timing of such disproportionate cost increase. Many diesel based auto are being introduced or about to be introduced in the US market where diesel does not have the best reputation. I myself was hesitant about diesel and would take the TT I6 X5 if it was available. I had to educate myself about the new diesel and break that mental barrier. IMHO, cost SHOULD not be an issue when you talk about a $70+ K car. I would have taken the 4.8 if it wasn’t for the bad range. That being said, there is a significant portion of the population that views the diesel option from pure economical stand point where “point of breaking even” is a big part of their decision. Higher cost of diesel will deter their interest in the product and lesson the popularity of that option. I have noticed that every time diesel is brought up, it takes about 4-5 responses before the thread is switched to cost. Nothing is wrong with that, it just highlights the current thinking of the educated consumer (being on forums like this one) and puts the whole attempt by European manufacturers to launch diesel vehicles at risk especially from long term standpoint and as a viable alternative to hybrids.

My $0.02

[Penguin]

Originally Posted by Craig

heating oil is the same thing as diesel. It's not low sulphur and it doesn't have the road taxes built into the price. That's why heating oil is cheaper than diesel. It's always been cheaper than diesel...

Craig

If you are speaking of heating oil # 2, you are correct. But, as I noted in my message, I was comparing to Heating oil #4 or residual heating oil.

http://www.castleoil.com/products/index.html