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Interesting read RE Diesel! Interesting read RE Diesel!
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Old 06-17-2008, 09:44 PM
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Angry Interesting read RE Diesel!
As someone interested in the upcoming X5 35d I find this to be a reasonable explanation to recent surge in Diesel prices here in the US!!
http://www.leftlanenews.com/mercedes...el-market.html
Last edited by JGQ; 06-17-2008 at 09:52 PM.
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Old 06-17-2008, 10:32 PM
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You should add "conspiracy" to the title. That'll get the natives going. LOL
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Old 06-17-2008, 10:44 PM
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I think Warren Buffet just wants people to use the trains he just bought... Talk about monopoly considering his influence on the avg. sport investor...
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Old 06-18-2008, 12:23 AM
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Today's prices...

Regular: $4.23/gal.
Diesel: $4.99/gal.
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Old 06-18-2008, 12:25 AM
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Old 06-18-2008, 01:03 AM
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Very interesting article. I too wonder why Diesel is so much higher than gasoline, since making Diesel is 'somewhat' easier than gasoline. Gasoline takes much more energy and time to refine. Diesel is kind of a 'byproduct' of refining gasoline. I, IMO, think Diesel should always be cheaper than gasoline. Just my 2 cents!
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Old 06-18-2008, 01:14 AM
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Diesel and gasoline come out of a barrel of crude in fixed percentages, for a given refinery process and design. Thus, they are byproducts of each other.

If you need gasoline to sell, diesel is a byproduct. If you need diesel to sell because demand rises above the natural production level, diesel gets expensive and gasoline is a byproduct.

But the headline that uses the word 'conspiracy' sells more papers.

It is secondary point, but since diesel contains more energy per unit volume, it should always be more expensive. It is inherently more valuable.
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Old 06-18-2008, 07:49 AM
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Quote:
Originally Posted by JCL
DIt is inherently more valuable.
True. But then water is inherently more valuable than Gold, and salt is more inherently valuable than truffles.
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Old 06-18-2008, 10:56 AM
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Quote:
Originally Posted by Penguin
True. But then water is inherently more valuable than Gold, and salt is more inherently valuable than truffles.
Touche!!
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Old 06-18-2008, 11:14 AM
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Quote:
Originally Posted by deutsch100
Very interesting article. I too wonder why Diesel is so much higher than gasoline, since making Diesel is 'somewhat' easier than gasoline. Gasoline takes much more energy and time to refine. Diesel is kind of a 'byproduct' of refining gasoline. I, IMO, think Diesel should always be cheaper than gasoline. Just my 2 cents!
Diesel is taxed substantially higher at both the state and federal US gov't levels. The opposite is true in the EU, where diesel is subsidised. In Germany, diesel currently runs around €1,39/litre versus €1,44-1,52/litre for all 3 grades of petrol. (There is little price difference, if at all, between grades of petrol in EU)

Diesel is running around $4,69-4,79/1 gallon in VA, compared to $4,39 for a gallon of premium petrol.
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