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Ram1500Diesel.com - Ram 1500 Diesel Forum

This is a discussion on Ram1500Diesel.com - Ram 1500 Diesel Forum within the RAM 1500 Diesel News forums, part of the RAM 1500 Diesel category; Originally Posted by EcodieselColstrip A Barrel of oil is 42 gallons. Diesel is only created when they perform the first "thermal" crack along with 5 ...

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  1. #31
    RAM Sr Member Kyler's Avatar
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    Quote Originally Posted by EcodieselColstrip View Post
    A Barrel of oil is 42 gallons. Diesel is only created when they perform the first "thermal" crack along with 5 other products. Jet fuel, kerosene, gas, etc. Once this is done, they use the heavy hydrocarbons that are left and "Catalyst" crack to make more gas.

    Before cat cracking, you got 11 gallons of gas per barrel. With cat cracking, you get about 23 gallons of gas per barrel.

    Once the diesel has been refined off, it must be treated to get rid of sulfur to <15 ppm. This is where the added cost comes from. This can only be done through "creative chemistry". Where I live, gase and diesel are $2.34 and 9/10. Farm machinery and even some school districts use red diesel which is not taxed ($0.50/gallon less) here.

    Hope that clears it up for you.

    The #1 reason is Federal fuel tax on diesel is higher.

    from Wikipedia - https://en.wikipedia.org/wiki/Fuel_t..._United_States

    The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel
    Ken
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  2. #32
    RAM Regular fxober's Avatar
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    Here in interior NorCal general purpose gas stations will price Diesel near premium 91 octane, at about $2,70 a gallon, Costco is the one retailer that keeps Diesel near 87 prices or ~$2,30 a gallon currently. So there is some nice profit taking on selling diesel. Definitely less competitive than the gasoline market in my part of the world.

    I think this is the best answer I could find from our government's EIA division:

    Why are diesel fuel prices higher than gasoline prices?

    On-highway diesel fuel prices have been higher than regular grade gasoline prices almost continuously since September 2004. This trend is a break from the previous 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. There are three main reasons why diesel fuel prices have been higher than regular gasoline prices in recent years:

    Demand for diesel fuel and other distillate fuel oils have been relatively high, especially in Europe, China, India, and the United States.
    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 than the gasoline tax.
    Reference:
    https://www.eia.gov/tools/faqs/faq.cfm?id=9&t=9

    Here is a retail price trend graph that further exhibits, the world demand picture on Low sulfur diesel:
    https://www.eia.gov/dnav/pet/hist/Le...te_nus_dpg&f=w
    Dreaming of Winter 2009, and 2016 .
    Last edited by fxober; 12-10-2016 at 05:17 PM.

  3. #33
    RAM Sr Member JimR's Avatar
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    Quote Originally Posted by Bigfoot View Post
    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).
    The only thing there is, other than Australia, those countries are all smaller than the state of Texas so you can cross those countries on a lot less gallons than you can cross the U.S.

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  5. #34
    RAM Sr Member mikeyoungvcu89's Avatar
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    There are many reasons why diesel is more expensive than gas but the Root of all of them is demand. Demand for diesel is far less flexible than that of gas. People use more or less gas by choice - in other words there usually are options. Since diesel is used still mainly for 'work' by vehicles that cant realistically be replaced by other means, the demand is inflexible. This does not by the way invalidate the post regarding the tax differences between diesel and gas..its the reason for it. It can be taxed higher without reducing demand.
    Icanfixit likes this.
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  6. #35
    RAM Jr Member Tracman63's Avatar
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    Not good news for us Ecodiesel owners: https://www.marketwatch.com/story/he...ghs-2018-05-18

  7. #36
    RAM Jr Member Jerome powell's Avatar
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    Who Is Buying The New 2020 Ecodiesel

    Just wondering how many members at planning to buy the new 2020, Ram Ecodiesel and how many are planning to keep their current truck.

  8. #37
    RAM Sr Member lucskoj's Avatar
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    I don’t plan on buying one right away. My current one will be paid off this time next year so just depends on if the deal is right.


    Sent from my iPhone using Tapatalk

  9. #38
    RAM Jr Member jetlag's Avatar
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    Oh my!! The sky is falling!!

  10. #39
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    Quote Originally Posted by jetlag View Post
    Oh my!! The sky is falling!!

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