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Old 03-18-2008, 08:08 PM   #9 (permalink)
Duffman
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Quote:
Originally Posted by Big Dave View Post
Diesel fuel is currently about 70 cents a gallon higher than unleaded gasoline.

The case against the usual suspect - the EPA- is airtight.

The government knew as far back as 2001 that the EPA’s ULSD and Tier II regulations would have a catastrophic effect on diesel fuel prices. Here’s May 2001 study on the subject.

http://tonto.eia.doe.gov/FTPROOT/ser...iaf2001-01.pdf

If you don’t have the time to chop through nearly 200 pages, this is the long and the short of it.

Regulation 6.7 cents
Capital investment costs 7.6 cents
Revamp costs 6.9 cents
10% down grade costs 7.1 cents (some ULSD will be downgraded to LSD)
Efficiency loss 6.7 cents
Energy loss 7.0 cents
Imports not meeting new spec 8.1 cents

Total 50.1 cents per gallon

And these figures (as the link explains) are in 1999 dollars. This is why diesel now costs 60 cents a gallon more than unleaded.

All this is over and above price increases due to the cost of crude, now sitting at about $2.60/gallon.

Add on top of that the fact that Tier II robbed diesels of about 4% of their efficiency.

Thank the EPA.
Hate to burst your bubble but in Canada ALL ON ROAD DIESEL since mid 2006 has been ULSD, we have not had the option. All last summer diesel was around $0.15/L cheaper than gas (thats $0.57/US Gal). We are now taking the same **** kicking that you Yanks are on diesel (we did the winter before too). We are just in a odd swing where diesel is unnaturally high, a similar situation happened back in 2002 as well.

Last edited by Duffman; 03-18-2008 at 08:14 PM..
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