Why is diesel still more than gas

[gates559]

Diesel is higher because most everyone with a diesel has there own business and our government believes we can afford it rather than raising the price of gasoline purchased by consumers.

Business owners write off the purchase therefore can pay more.

 

[pistoncontracting]

Supply and demand.

Diesel fuel moves the economy. I could be wrong, but I'm betting that diesel powered 1 tons are not the driving factor.

As industry's that consume copious amounts of fuel expand, so does the need, so does the price.

 

[lloydguy]

I always have a laugh when guy's respond to these threads and say diesel is more because of
the increase in refining costs since the ULSD was introduced.It costs 20 more cents per litre to
make ULSD over LSD.REALLY..............................WOW............................................
2 words IMO explain why prices are more than gas over the last ten years
#1 GREED
#2 Profit margin's

 

[adamg]

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

I filled up at Costco Edmonton yesterday, 96.9/L!

 

[doorfx]

I filled up at Costco Edmonton yesterday, 96.9/L!

Gas????

 

[Work2Ride]

It's all about demand, if people will pay it, they will charge it.

 

[lloydguy]

So, not that diesel has been back lower than gas for awhile now, i would love to read the
insight of the brilliant guy's that posted that USLD cost's Soooooooooooo much more to
produce than LSD and gas.
To be honest ,all of you guy's that say we pay so much for diesel because of high refining
cost's,low can. dollar,ect are BONEHEAD's..........
Gas is currently about 15c per litre MORE than diesel and for the last 10 years we have been
paying on average 10 -12 cent's more for diesel than gas........
Did the COST of producing ULSD magically drop 25% (refining cost's,transport,ect)
AND Go....................................

 

[Skegmeister]

The cost of crude oil and the type of crude feedstock fed into refineries drives the yeild of what comes out the pipe into each of the product buckets. Most heavy crudes have less yield of distillate (unrefined tower cut that can be made into diesel, kero, Jet fuel) than gasoline. There is typically more sulphur to remove in the heavy crudes or an abundance of sour crude which costs even more to make USLD diesel, as well a many other impurities like heavy metals. Western Canada has not adapted quickly to evolving heavy crude stream coming in from up north. Most feedstock from western Canada has been light oils or condensates.
Western Canada is not a huge petroleum consumer, which is why we do not have big refineries.
Saying that Alberta should refine its crude into gas or diesel and then ship to customers has a couple logistical problems. Demand and supply is one. If our customers need diesel and all we have to sell is gas... we have a storage issue becuase no one wants it. We shift the refinery to start making more diesel, perhaps the demand changes and now the demand is higher for gas.
The other is shelf life. Refined fuels have a shelf life, the magic additives added to fuel to improve combustion, clean carbon deposits, etc will degrade and eventually wind up contaminating fuel.
An other comparison would be like Alberta not shipping raw wheat overseas. Instead we give them bagels, doughnuts and bread. Same issue with product demand and shelf life of the finished product.