2007-01-05 00:57:06 · 9 answers · asked by DWebster 1 in Cars & Transportation ➔ Other - Cars & Transportation
Several reasons. First the formulation has changed...as of October, Diesel sold in the US is ultra low sulfur. Second, demand is seasonal because it's essentially the same stuff as home heating oil, so it's usually more expensive during the winter. Finally, worldwide demand is up, thanks to the growing popularity of Diesel automobiles in Europe, military demand, and market growth.
2007-01-05 01:07:17 · answer #1 · answered by anywherebuttexas 6 · 0⤊ 0⤋
some regions are requiring "CLEANER" fuel so here on the west coast diesel is $3 or more per gallon and another part of the answer is supply and demand -since diesel and heating oil are the same thing. Temps in the northeast can have a dramatc effect on fuel costs elsewhere -just the THREAT of a hard winter can send fuel futures skyrocketing cause people don't want to be cold and the north east has the greatest number of oil fired homes
2007-01-05 07:15:16 · answer #2 · answered by badmts 4 · 0⤊ 0⤋
This is a three part answer:
First-there is more demand so they can sell it for more.
Second- diesel fuel is a by-product of gasoline production with a lot of impurities so they could sell it cheaper and still make a lot of money on it because they could sell it with minimal refining instead of having to further treat it to make it into something useable.
Third-because of the new laws passed in the last few years they now have to take most of those inpurities out and add in sulfur and other chemicals to make it more environmentally friendly. The extra refining and processing has driven up the cost.
2007-01-06 03:54:16 · answer #3 · answered by gery h 1 · 0⤊ 0⤋
It was a lot cheaper than gas in the 60's, but when a few diesel cars starting showing up getting great MPG, the price went up.
Diesel is still cheaper over here in Germany and other Euro countries, and a lot more of it is used.
2007-01-05 01:11:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Diesel is similar to home heating oil whereas petrol (aka gasoline) has shorter carbon chains (which is why it's more runny and burns more easily).
So in the winter the relative price of diesel goes up (since there's more demand for home heating oil).
2007-01-05 01:08:24 · answer #5 · answered by Huw 3 · 0⤊ 0⤋
Actually, I doubt they make less diesel since all the trucks on the road run on it, most ships run on a version, and airplanes run on yet another derivitive. (they are kerosene based) I would said it is all about demand, since the other factors (world crude supply, speculation, world events, etc.) are the same for both, so the difference is the demand for different end products.
2007-01-05 01:08:10 · answer #6 · answered by cavcarl 2 · 0⤊ 0⤋
Its all economics of scale. They make less diesel than gasoline so it costs more. I think we are just getting hosed!
2007-01-05 01:01:16 · answer #7 · answered by mark t 7 · 1⤊ 0⤋
in a barrel of oil there is so much gas and so much diesel, when consumpton requires more than then it costs more in order to maintain a ratio
2007-01-05 01:16:37 · answer #8 · answered by Ibredd 7 · 0⤊ 0⤋
taxes and new low sulfer laws...and just getting hosed
2007-01-05 01:07:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋