Gas vs diesel: calling all conspiracy theorists!

[jamesqf]

Driving by several stations this weekend, I saw gas as low as $2.92/gal, about a 70-80 cent drop in the last couple of months, but the lowest I saw for diesel was still $3.60, only a 10-15 cent drop. How come?

[pgfpro]

Originally Posted by jamesqf

Driving by several stations this weekend, I saw gas as low as $2.92/gal, about a 70-80 cent drop in the last couple of months, but the lowest I saw for diesel was still $3.60, only a 10-15 cent drop. How come?

In my area gasoline is $2.69 a gallon verse diesel at $3.47 a gallon???

[bhazard]

Theres over a dollar spread between the two here. Its ridiculous.

[ksa8907]

Deisel trucks (semis), construction equipment, buses, trains, boats, pretty much everything that is meant to move heavy loads or be highly efficient uses diesel.

This means that demand is more steady than gasoline.

[jamesqf]

Originally Posted by ksa8907

This means that demand is more steady than gasoline.

But if anything, that should cause the price of diesel to decrease faster than gas, because a drop in price would increase gasoline demand due to all the discretionary users - that is, people who drive more and/or choose to drive less efficient vehicles because gas is temporarily cheap - whereas most of the commercial diesel users will still use the same amount so demand stays much the same.

[jakobnev]

I bet it has something to do with the latest faked comet landing!

[Xist]

One of my friends bought a new Mercedes diesel, saying that he saved so much gas compared to his F150 that it covered the car payment and insurance. There are three places in Phoenix, all very far from me, charging $2.539 for gas, but there is one place charging $3.019 for diesel, it is actually one block from where I used to live, but most of the other places listed are $3.299!

[jamesqf]

Originally Posted by Xist

One of my friends bought a new Mercedes diesel...

Still could be saving money, depending on the particular model of F150 & Mercedes. F150 ranges between 16-23 mpg highway, E-class Mercedes gets 42-45 highway. So he'd still save with 3.30/gal diesel until gas gets down to $1.65/gal.

[rmay635703]

Diesel went slightly up in price around here last time I checked.

When I investigated this perpetual issue I found that it has to do with a couple things.

1. US Light sweet crude favors gasoline production
1a. Us OIL companies are trying to eliminate the poorly enforced oil export law

2. Oil companies load level profit, they attempt to maintain the price of either diesel or gasoline during a price decrease to maintain profit levels.

[jamesqf]

See? 1a & 2 = conspiracy!