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As I Had Thought
Let me start out with the observation that the prices of gasoline and diesel are high. Obviously the price of crude has a big effect.
What I want to zero in on is the fact that diesel fuel costs eighty cents a gallon more than regular unleaded (or premium for that matter) gasoline. The US is pretty much alone in that difference. This table is in euros. gasoline-germany.com - International Gas / Petrol / Diesel prices - From the link: England 91 Octane Gasoline: €1.34 Diesel: €1.22 Spread: Gasoline is 10% more expensive than diesel France 91 Octane Gasoline: €1.39 Diesel: €1.32 Spread: Gasoline is 5% more expensive than diesel Japan 91 Octane Gasoline: €0.97 Diesel: €0.75 Spread: Gasoline is 29% more expensive than diesel Australia 91 Octane Gasoline: €0.94 Diesel: €1.18 Spread: Gasoline is 26% more expensive than diesel Germany 91 Octane Gasoline: €1.43 Diesel: €1.33 Spread: Gasoline is 18% more expensive than diesel But at my local gas station 91 Octane Gasoline: $3.83 Diesel: $4.45 Spread: Diesel is 16% more expensive than premium gasoline So let’s put the myth that the spread of diesel over gasoline has anything whatsoever to do with world demand down as being busted. In most countries that tend to prefer diesel cars, diesel is less expensive than gasoline. But in the US the reverse is true. There is only one plausible reason: Ultra-Low (15 ppm) Sulfur Fuel is required ONLY in the US. It costs more money to remove the sulfur. This relationship was not true at all in 2006, prior to the advent of ULSD requirements. Gasoline and diesel cost roughly the same (gasoline was more expensive in summer, diesel more expensive in winter) prior to ULSD. Diesel in the US is more expensive than gasoline and you can exclusively thank the EPA. |
I thought Europe had been using low sulfur diesel for longer than us?
Also, isn't diesel subsidized by the government in some countries? |
European countries tax gasoline higher to encourage diesel use...or so Europeans tell me.
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Big Dave -
The plot gets messier : Ultra-low sulfur diesel - Wikipedia, the free encyclopedia Quote:
Question: In the above Wiki, they are saying that our pre-ULSD was not compatible with EU diesel because the EU emissions equipment would be poisoned by the US diesel fuel. Does that sound right? Are the current EU diesels designed for <= 50 PPM sulfur diesel fuel? CarloSW2 |
Yup, the rest of the civilized world is low sulfur and for longer too, gets 33 countries a better low sulfur score than the US according to IFQC - Top 100 . All the above countries except Australia got a better score than the US. The Kanuks even beat us at position 33 :)
I don't know about subsidies. Every time someone dies in the sand, is it a subsidy? |
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Why is diesel more expensive than petrol? Why is diesel more expensive than petrol? | This is Money Diesel is more expensive than gasoline in most of europe. Scroll down for the list. Czech diesel price ranked fourth-highest in Europe - Prague Daily Monitor - 21.07.2008 The list at the begining of this thread is so incredibly wrong, it actually claims diesels in the the USA is cheaper than gasoline. Quote:
The high price of diesel has nothing to do with ULSD or the EPA and everything to do with supply and demand. Over the last few years the whole world (not just europe) has been switching from gasoline powered cars to diesel powered cars. Refiners on the other hand can't infinitely vary the proportion of diesel to gasoline they can extract from a barrel of oil. They can only go so far one way or another before drastically increasing the cost of refining. But because the US has remained largely a gasoline market, it has been able to survive without building a any new refineries in the last 30 years by importing refined gasoline from markets where diesel is more in favor. The upfront cost of a diesel engine plus the cost of fuel more than offsets any fuel economy benefits. The huge premiums I was used to seeing on Craigslist for old beat up Mercedes and TDIs have started to disappear as people wake up to the reality that diesel costs an additional 60 cents a gallon. Sure you still have SVO conversions and biodiesel. If you can find it, more power to you. cheers Justin |
For the People, by the People
In defense of the ULSD decision, and the EPA, here are a few more data points to consider...
Older Diesel engines produce soot. Some more than others. This translates into "Particulate Matter" or PM. This just in: PM2.5 levels in many areas of the Country are at an unhealthy level: http://www.epa.gov/pmdesignations/20...aps/natmap.gif The biggest offenders are coal power plants and vehicle exhaust. Older diesels have a high output of PM comparable to gasoline engines -- which is why action was taken. We're making ourselves sick. It seems like a sensible regulation to me. EPA bashing is the easy way out. More info: EPA Regulatory Actions for Nonattainment. RH77 |
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Australia
91 Octane Gasoline: €0.94 Diesel: €1.18 Spread: Gasoline is 26% more expensive than diesel Sorry but not so. Gasoline is LESS expensive than diesel at the pump. Diesel is and has been for many years more expensive than unleaded (gasoline) here. The main reason is the rates of tax levied on the two different products. Cheers , Pete. |
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