[GTI 20v]

I generally don't pay attention to the price of diesel, but I noticed last year when the price of gas was around $4.00, diesel was something absurd, like $4.75. At my local station yesterday, I noticed that 87 octane was $2.21, and diesel was $2.15. WTF?
I was my understanding that refinement of oil always produces gasoline and diesel in the same proportions, so shouldn't gas and diesel always be priced the same relative to each other?

 

[IJM]

Re: WTF is up with the price of diesel? (GTI 20v)

Supply and demand. With the economy in the ****ter, the damand for diesel decreases more than the demand for gasoline.

 

[xafpunkerx]

I found this on google I don't know if it is right or not but hey.......
Only 40% of a barrel of crude oil can be made into gasoline. The rest of the oil can be distilled into diesel/heating oil, heavy gas oil, lube oil, kerosene, naptha, and light gas. Diesel used to be substantially cheaper than gasoline, but increased use of tractor-trailers and train engines, which all run on diesel, has strained the available supply.
Refineries can either optimize for gasoline or diesel production. Gasoline is a better profit center right now as the high-end production equipment that was installed about 10 years ago is finally turning in big profits. Refiners would have to invest billions to retrofit an existing gasoline line or build a diesel refinery and they will not do that as the short-term profit to investors would be at risk.

 

[rudmad]

Re: (xafpunkerx)

In the winter it is used to for heating houses... so, the price comes down when its warmer out.

 

[ltparis]

I think it depends where you are. Here in NY diesel is still > $0.50 more than regular, and in NJ the gap is far less pronounced.

 

[JDub8]

FV-QR

I wonder how long diesel lasts in a tank... like if you got a large home bladder and stored away 400 gallons or so.

 

[Jetty!]

Re: FV-QR (JDub8)

Quote, originally posted by JDub8 »

I wonder how long diesel lasts in a tank... like if you got a large home bladder and stored away 400 gallons or so.

Not too long. Diesel picks up water pretty easily, which you wouldn't want getting into your fuel.

 

[JDub8]

FV-QR

I dont see it being stored in a bath tub.

 

[Jetty!]

Re: FV-QR (JDub8)

Quote, originally posted by JDub8 »

I dont see it being stored in a bath tub.

Yea, too bad there is still water in the air we breathe which can condense.
I've also read that some of the parts of the diesel fuel can start to separate if they are stored for too long.

 

[Fred McMurrey]

Re: WTF is up with the price of diesel? (GTI 20v)

I remember reading (on Deutsche Welle I think) that it was the demand for diesel in Asia that was driving the price of diesel so high last year and I guess that's eased now with the collapse.

 

[Slowkums]

2 different markets, dude. And it'll be that way as long as diesel burning passenger vehicles make up less than 1%* of new car sales.
*Totally pulled that number out of my ass.

 

[MEIN_VW]

Re: WTF is up with the price of diesel? (GTI 20v)

Diesel here has been cheaper than regular gas for a few months now. Currently $0.97/litre for regular and $0.79/litre for diesel.

 

[CosmicTDI]

Re: FV-QR (Jetty!)

Quote, originally posted by Jetty! »

Not too long. Diesel picks up water pretty easily, which you wouldn't want getting into your fuel.

Water in diesel is gonna happen anyway. A new fuel filter and some attention to monitoring it (and draining it, if that car is so equipped) should take care of any issues.
Right now gas is going from $2.55 - 2.69/gallon. Diesel is $2.19 - 2.39.

 

[spockcat]

Re: FV-QR (JDub8)

Quote, originally posted by JDub8 »

I wonder how long diesel lasts in a tank... like if you got a large home bladder and stored away 400 gallons or so.

Quote, originally posted by Jetty! »

Not too long. Diesel picks up water pretty easily, which you wouldn't want getting into your fuel.

We had a 1000 gallon underground oil tank (heating oil and diesel are almost identical) and would only buy oil once every two years. We never had any problems with water. The tank was even vented to the outside air. After over 20 years, we finally dug the tank up because people warned us it could rust and leak. When we took it out, the tank was almost perfect with just a small amount of surface rust and no internal rust.
I think diesel will last a long time in storage.

 

[Pizza Cat]

Re: FV-QR (spockcat)

why do these dumb threads keep popping up...diesel is just going back to where it historically lies in relation to regular 87. last summer, all the normal rules went out the window.

 

[AS50]

Re: WTF is up with the price of diesel? (GTI 20v)

Quote, originally posted by GTI 20v »

I was my understanding that refinement of oil always produces gasoline and diesel in the same proportions, so shouldn't gas and diesel always be priced the same relative to each other?

I also read it's easier (therefore cheaper) to refine diesel from crude than it is gasoline so in theory diesel should be cheaper at the pumps, but as other people have posted, the price is more to do with supply and demand than anything else.

 

[tdogg74]

FV-QR

Quote, originally posted by IJM »

Supply and demand. With the economy in the ****ter, the damand for diesel decreases more than the demand for gasoline.

Currently, supply & demand has nothing to do with fuel prices at this point in time. Its all about OPEC and the Saudi's feeling the price of oil should be in the $70-80 range right now. "They" feel that the world economy has recovered enough to "handle" the increased prices now.....despite the fact that we (the US) are eye-ball deep in a full-on recession. Generally, fuel prices have trailed the price of oil. Now-a-days, fuel is parallel with oil prices. Its all about making a buck now.....not supply and demand. Actuall, any demand that come up is created by OPEC to raise prices.
We're paying for high gas prices now because its Spring/Summer. Thats all.

 

[The Kilted Yaksman]

FV-QR

Diesel is a good 20 or 25 cents a gallon cheaper than regular unleaded here.

 

[Live-Wire]

Re: WTF is up with the price of diesel? (GTI 20v)

Diesel is at 78.9c/L right now... gasoline is around 98.9-99,9c/L.... Wish I had my TDI again. 20% off sale + 1/2 the consumption of my current 6-sylinder gasoline engine (on a good day) = cheap transportation.

 

[drdrew]

Re: WTF is up with the price of diesel? (Live-Wire)

Quote, originally posted by Live-Wire »

Diesel is at 78.9c/L right now... gasoline is around 98.9-99,9c/L.... Wish I had my TDI again. 20% off sale + 1/2 the consumption of my current 6-sylinder gasoline engine (on a good day) = cheap transportation.

Yup, exactly what I was gonna say.