[wicked]

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[Bighorn2500]

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.

 

[Bigfoot]

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.

 

[marsman]

And what assurance do we have that all of the fuel taxes do go to the intended use of highways and bridges ?

 

[Bigfoot]

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).

 

[shaker223]

"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.

 

[Bigfoot]

It's really the oil companies. The American public is stupid and they know it. ...

Speak for yourself.

 

[shaker223]

Hey, sorry if you can't handle the truth.

 

[EgoDiesel]

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)

 

[marsman]

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"



.

 

[shaker223]

Guys, Diesel comes off a barrel of oil before gasoline. Should be cheaper. As soon as manufacturers started to talk about diesels in the United States, coincidently, at the same time, diesel fuel surpassed gasoline in price at the pump. Chrysler had a diesel caliber overseas but not here. It got 45+ mpg and had the same torque as the US 4.7L gas engine. I worked for Chrysler and understand some of their difficulties with different market needs and wants. We even looked at diesel minivans in the US but nixed it.

Truck buyers are more discerning than car buyers. Have you ever noticed that more content is packaged on cars than trucks?

 

[shaker223]

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.

I think were talking about diesel fuel prices and the factors that influence its price.

 

[miker]

putting photos on site

How do you up load pictures from your phone or computor

 

[DieselDan]

If your uploading from your phone, the only way would be using tapatalk (free download).

To upload using the computer, just click on the insert image icon..

 

[miker]

I thing I figured it out thanks

 

[miker]

It will look nice. DieselDan and ExploreUtah you pick the thing I think its a good choice. Not as loud as the other colors. More softer. I think. Hoping to have it soon mybe two weeks.

 

[veraderock]

I agree, very nice!

 

[DrivingZiggy]

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.

Another factor that "I've heard" that caused the price of diesel to skyrocket is that China is using so much more now.

Unfortunately, light trucks and cars that run on diesel pay the same taxes.

Not exactly true. There is an "IFTA" tax that big trucks pay in all states except Oregon. IFTA stands for "International Fuel Tax Agreement." The amount per gallon varies by state and you can see the difference at some truck stops--most notably Flying J--where there are pumps for cars which have a different price than the diesel pumps where the big trucks fuel. Here in Louisiana, the difference is $.20. In addition depending on miles driven in each state, registering the vehicle in each state can cost more than $2000 per year. In addition to that, states like Kentucky and New York (and some others) charge yet another mileage tax and surcharges for big trucks.

And what assurance do we have that all of the fuel taxes do go to the intended use of highways and bridges ?

None. In fact, here in Louisiana around the time of Hurricane Katrina our governor (Blanco) received the money from the federal government and deemed that it would be more useful to dig a lake and build a golf course than to apply it to the highways. And it shows in the condition of our highways.

 

[wbdavey]

Diesel prices as explained to me by a man who owns a gas station here in central New York state. It's the law of supply and demand. The EPA has mandated that we in the US (and Canada??) burn "Ultra Low Sulfur Diesel" in our vehicles (low demand). Most of the rest of the world burns plain old diesel and the rest of the world burns a lot more than we do (high demand). To add insult to injury, in the colder climates diesel is diluted with kerosene to prevent gelling. Now the refineries must produce "Ultra Low Sulfur Kerosene" to mix with the ULS diesel. He was not aware of any other place in the world that uses ULS Kerosene. This is not my opinion, this is what was explained to me.

 

[Johns MOPAR]

After I bought my Eco Diesel, I had a lot of people wanting to know if the dealership would get more. The day I bought it they said they had ordered 7 more for the lot, I had gotten the last one. A couple of days later I went back and the sales manager told me something interesting. Chrysler replaced the order for diesels with gas motors. He was told they wouldn't be getting any more in until maybe next year. The dealership has a waiting list of people wanting this truck, but that didn't matter. Apparently, there is either some sort of marketing scheme at work here or Tennessee has a quota cap on diesels and they are unloading the gas models and higher range diesels instead.

I think it is high time to get diesels out of the Sh#t House and into the main stream. I propose writing your congressman to remove any caps on diesels.