Ram1500Diesel.com - Ram 1500 Diesel Forum

Ram1500Diesel.com - Ram 1500 Diesel Forum

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    Administrator wicked's Avatar
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    Ram1500Diesel.com - Ram 1500 Diesel Forum






    Welcome to Ram1500Diesel.com , the premier Dodge Ram 1500 Diesel Forum dedicated to all Ram 1500 Diesel owners and enthusiasts. Built for Ram 1500 Diesel owners by Ram 1500 Diesel owners. We aim to be a friendly, educational community dedicated to everything about the 2014+ Dodge Ram 1500 Diesel. To take full advantage of the site, we ask that you please Register - It's quick and free! You can take advantage of some of our most popular features on the site which are linked below:


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    RAM Rookie Bighorn2500's Avatar
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    Unhappy Diesel fuel

    I noticed that North America is the only place on Earth where diesel fuel is more expensive than gas. Why is that?
    Diesel should be cheaper since it's considerably less refined than gas.

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    RAM Guru Bigfoot's Avatar
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    Quote Originally Posted by Bighorn2500 View Post
    I noticed that North America is the only place on Earth where diesel fuel is more expensive than gas. Why is that?
    Diesel should be cheaper since it's considerably less refined than gas.
    From Why has diesel fuel been more expensive than gasoline? - FAQ - U.S. Energy Information Administration (EIA)

    On-highway diesel fuel prices have been higher than regular gasoline prices almost continuously since September 2004, a break from the historical pattern of diesel fuel prices usually being lower than gasoline prices except in cold winters when demand for heating oil pushed diesel fuel prices higher. The main reasons why diesel fuel prices have been higher than gasoline prices in recent years are:

    • High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China, India, and the United States, and a tight global refining capacity available to meet demand during the period of high economic growth from 2002 to mid-2008.
    • The transition to less polluting, lower-sulfur diesel fuels in the United States affected diesel fuel production and distribution costs.
    • The Federal excise tax for on-highway diesel fuel of 24.4 cents/gallon is 6 cents per gallon higher the gasoline tax.

    The reason diesel is taxed more than gas in the U.S. is to recover some of the cost of supporting heavy trucks which are almost entirely diesel powered. We ship most goods by truck and they cause most of the damage to highways and bridges. Unfortunately, light trucks and cars that run on diesel pay the same taxes. In the 1980s there was a tax credit for diesel cars but that no longer exists. The fuel tax system is unlikely to change although some states add a more equitable weight-mileage tax to freight carriers.
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    "The avalanche has already started; it is too late for the pebbles to vote." - Kosh Naranek

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    RAM Regular marsman's Avatar
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    And what assurance do we have that all of the fuel taxes do go to the intended use of highways and bridges ?

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    RAM Guru Bigfoot's Avatar
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    Quote Originally Posted by marsman View Post
    And what assurance do we have that all of the fuel taxes do go to the intended use of highways and bridges ?
    I can't speak for states other than my own, but I know that Federal fuel tax goes into the Highway Trust Fund where more than 80% is directed to highway projects. The rest goes into other transportation projects such as transit, trails, leaking underground fuel tanks, and local projects chosen by the states. During the George H. W. Bush and Clinton administrations some of the tax went into deficit reduction. The fuel tax provides the main funding for highways and roads but doesn't come close to meeting even basic maintenance needs much less new construction. We'd have to triple or quadruple the fuel tax for car travel to pay for itself, and that ain't going to happen anytime soon. No wonder our infrastructure is falling apart.

    We are fond of complaining about fuel cost but it is nothing in the U.S. compared to most of the world. Check out current prices for diesel on World petrol prices, gas prices, diesel prices | MyTravelCost.com in U.S. dollars per gallon: Japan ($5.01), Australia ($5.37), France ($6.75), Germany ($7.31), Finland ($7.82), Italy ($8.59), Norway ($10.02).
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    "The avalanche has already started; it is too late for the pebbles to vote." - Kosh Naranek

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    RAM Veteran shaker223's Avatar
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    "Why has diesel fuel been more expensive than gasoline? - FAQ - U.S. Energy Information Administration (EIA) "

    It's really the oil companies. The American public is stupid and they know it. The public will wait 20 minutes or more in line to save 10 cents per gallon. Price diesel more than gasoline and the majority will not want to purchase it. Nevermind diesel may be 30% more efficient than gasoline. The American public is short sigted on this and the oil companies know this. 30% more efficient means 30% less profit for the oil companies.

    Also, we have had a pretty severe winter this year and I have not heard once about the fuel oil heating demand in the northeast.

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    RAM Guru Bigfoot's Avatar
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    Quote Originally Posted by shaker223 View Post
    It's really the oil companies. The American public is stupid and they know it. ...
    Speak for yourself.
    "The avalanche has already started; it is too late for the pebbles to vote." - Kosh Naranek

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    RAM Veteran shaker223's Avatar
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    Hey, sorry if you can't handle the truth.

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    Moderator EgoDiesel's Avatar
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    Quote Originally Posted by shaker223 View Post
    Hey, sorry if you can't handle the truth.
    Just because SOME people do things doesn't mean the MAJORITY think/act that way. That's called stereotyping. Although I'm Canadian and couldn't agree more that the American public is stupid, it's not their choice of fuel economy methods that proves it. Changing the demands for diesel will also VERY VERY adversely affect off-road industries like farming and construction, and a few cents adds up to the millions quickly. It's not an overnight thing you can fix, and it certainly isn't a reasonable gripe in this particular thread. Try a Fuel Economy thread or a Ford website? (I hear Ford loves to burn gas)
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    RAM Regular marsman's Avatar
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    Skake
    fact is 70 % of goods delivered in the US are delivered by truck, couple that with infrastructure, roads and bridges, the use of diesel by industrial and commercial vehicles far outweighs passenger vehicles... The fuel tax is imposed, 1 because it can be, 2 for infrastructure... Whether all of that money gets allocated for roads and bridges, is another topic for another day.
    Not sure where you're coming from:
    <<The American public is short sigted on this and the oil companies know this>>

    You can adjust the tin foil on your ball cap, so you can hear a little better - when they talk about the big conspiracy..
    And as Johnny Fever from WKRP once said "if they are really out to get you, then being paranoid is just right thinkin"



    .
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