Why is diesel still more than gas

[taz3038]

Gas prices sure have dropped lately how come diesel is still more expensive than gas. Actually diesel went up more and gas dropped 6 cents where I live. I'm sure there isn't a diesel shortage from last year still is there? When will it ever go down?

 

[Bogger]

supply & demand

 

[sirkdev]

Refining costs, ULSD is more costly to produce than the older diesel standard

 

[SLEDBUNNYRACING]

Manufacturers gouging?


Sent from my Phone while sitting on the side of the road.....maybe.

 

[Clode]

rolling coal takes lots of diesel

 

[ferniesnow]

rolling coal takes lots of diesel

They got you diesel pushers where they want you..................spending the big bucks!

 

[doorfx]

Just roll some more coal and don't worry about it !!!! Lol j/k
It definitely adds a lot to the cost of running a diesel. Car lots are full of used diesel trucks.

 

[whoDEANie]

Here's what I just found on a the website for the U.S. Energy Information Agency:

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.

I can't comment on the first point, so I guess I'll have to assume it's factual.

The second bullet seems bullchit. Although production and distribution costs of diesel may have gone up, that says nothing to how they compare to gasoline.

The third point also seems f'd up. Especially now that DPF is mandatory on all new diesel burning vehicles, the cost of which is definitely not transparent to us, it grind my gears that we're being taxed more for it. While I originally though this excise tax on diesel was related to emissions, it turns out that this was no more than a strategy (at least in Canada) for us to generate more revenue with which to pay down our debt.

 

[Clode]

They got you diesel pushers where they want you..................spending the big bucks!

I have a gas dually

 

[ferniesnow]

I have a gas dually

My last two trucks have been gassers. I do not pull enough nor drive enough to warrant the higher initial cost let alone the higher maintenance cost.

Filled up in Okotokos the other day at $0.99 and I also notice that Premium was $1.09.

 

[arff]

Because white Oakleys come with a fill.

 

[takethebounce]

Maybe if they ever get that diesel refinery North of Edmonton done which I believe is in late 2016 diesel prices will go back down a little. Or not.

I am not an economist but it shouldn't take almost 30 years to get a new refinery built in Canada. It seems our government still believes free trade is good for the consumer. Selling crude to the U.S. So they can sell it back to us at a higher rate than they do South of the boarder.




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[X-it]

Because Costco does not carry diesel. We where getting raped before Costco come.

 

[uninc...]

Maybe if they ever get that diesel refinery North of Edmonton done which I believe is in late 2016 diesel prices will go back down a little. Or not.

I am not an economist but it shouldn't take almost 30 years to get a new refinery built in Canada. It seems our government still believes free trade is good for the consumer. Selling crude to the U.S. So they can sell it back to us at a higher rate than they do South of the boarder.




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We pay more for fuel because we pay more tax then they do in the US. Has nothing to do with them charging us more.

 

[Caper11]

Prices went up after 07, ulsd was introduced along with the emissions engines which in turn lowered the fuel economy of those trucks compared to a non emissions engine. Imo it boils down to supply and demand and higher refining costs.




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[X-Treme]

I have a friend that works in the refineries, and he says the oil companies make very little on gasoline. Like 2-3 cents per liter. But, where they make all their money is on diesel. Like 20-30 cents per liter. I think it all comes down to the typical greed of these companies.

 

[takethebounce]

We pay more for fuel because we pay more tax then they do in the US. Has nothing to do with them charging us more.

Is that so? Nothing to do with it? I don't believe our fuel taxes are much more than the U.S. They have been taxing fuel heavily as well.

The U.S. Federal tax on diesel is 24.4 cents, the average state tax is 31 cents, so about 55 cents per gallon.

In Canada the federal tax is 10 cents a litre then the obvious %5 gst and in Alberta the provincial tax on fuel is 9 cents a litre.

A quick search lead me to a US energy site that lists recent ULS diesel at $3.78 gallon average retail. So minus the tax. $3.23 gallon

The sign said $1.14 litre for diesel on the way to work. Minus the taxes, 89 cents a litre.

3.785 litres per gallon at 89 cents is $3.36 before taxes. In the end they pay roughly 14 cents a litre, we pay 19 plus gst. So about 20 cents. That is only a 6 cent difference and given their dollar hovering around 1.14 it isn't much difference at all.


Now back to free trade. NAFTA is a funny agreement. A read of it would drive you insane. Quite awhile back I read an article in a business class that identified several issues with chapter six of the agreement. One of those is that the U.S cannot sell back a refined product to Canada cheaper than they would sell to themselves. Canada being a large producer/supplier of crude to the US handcuffed themselves by agreeing to this. Canada can also not charge a higher price to the U.S through any method than they would charge themselves.

So if Canada wanted to refine crude in one of its refineries, that price of crude cannot be sold cheaper in Canada than the U.S. And without enough diesel refineries to supply Canada we are stuck sending it south of the border. Even if Canada is supplying crude at a cheaper rate than other suppliers to the US, they set the minimum price for it to be sold back.

See what I am saying.






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[uninc...]

if your numbers are correct and we are paying 3.36cad/gal at today's exchange rate that is 2.99usd/gal and Americans are paying 3.23/gal? Soo they are selling it cheaper to Canadians? I'm confused now?

 

[takethebounce]

I only added the exchange as an additional factor to consider. The cost/purchase is possibly closer to par at today's rates. Tomorrow could be different. I just wanted to show that it really isn't taxes. Many people believe we are taxed more and on some items that is true but the economy is in the dumps south of us and they are taking it wherever they can from their consumers.


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[gdhillon]

Because Costco does not carry diesel. We where getting raped before Costco come.

Sole reason I got a costco card....well that and 1.50 hoddog and pop