How Come Diesel fuel cost so much ?
Senior Member
Joined: Mar 2006
Posts: 9,533
Likes: 0
From: tacos
Vehicle: 2000 Elantra
http://www.eia.gov/tools/faqs/faq.cfm?id=9&t=5
Why has diesel fuel been more expensive than gasoline?
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.
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.
Senior Member
Joined: Mar 2008
Posts: 4,185
Likes: 0
From: Atlanta, GA
Vehicle: MC + RD2 + AW11 + 944 = 4x Win
I've always been taught that the primary reason was raising the cost of diesel allowed gas providers to lower the cost of unleaded due to the demand for trucks, trains, etc. Not sure if this is true, but if it is I'd rather pay more at the pump than at the checkout. But the point is, this hides the cost to the average consumer, good or bad.
Tax is another good point though.
Tax is another good point though.
Administrator
Joined: Oct 2002
Posts: 13,943
Likes: 0
From: ɯooɹpǝq ɹnoʎ
Vehicle: ǝdnoɔ sısǝuǝƃ
^ Because profit. ^
Those who run diesel don't have a choice for an alternative. Logistics companies running semi trucks back and forth, coast to coast are forced to deal with it. The higher tax and prices encourage them to find new ways to save on fuel, but that's just a ridiculous method to take. The tax is intended to support infrastructure and road repairs, so when the bulk of diesel users are semi trucks, it makes sense that their heavier loads and bigger vehicles put more stress on the roadways.
I wish the price of diesel would drop and more car manufacturers would adopt the use.
Oh yeah, and whoever in Washington has the corn farmers filling their pockets, ethanol is a load of bullshit. Deter people from diesel so we can make them pay higher costs for ethanol.
biggest scam ever.
Those who run diesel don't have a choice for an alternative. Logistics companies running semi trucks back and forth, coast to coast are forced to deal with it. The higher tax and prices encourage them to find new ways to save on fuel, but that's just a ridiculous method to take. The tax is intended to support infrastructure and road repairs, so when the bulk of diesel users are semi trucks, it makes sense that their heavier loads and bigger vehicles put more stress on the roadways.
I wish the price of diesel would drop and more car manufacturers would adopt the use.
Oh yeah, and whoever in Washington has the corn farmers filling their pockets, ethanol is a load of bullshit. Deter people from diesel so we can make them pay higher costs for ethanol.
biggest scam ever.