Why is deisel priced so high when it is less refined than other fuels? Before prices got out of control a year or two ago it was the cheapest of the fuel options. It doesn't make sense that it cost less to get it to the pump but ends up being the most costly.
2007-10-31 00:41:33 · 7 answers · asked by ange 1 in Cars & Transportation ➔ Maintenance & Repairs
a couple of years ago the government mandated that Diesel fuel is cleaner to burn for the environment. This additional refinement caused the diesel prices to go up.
2007-11-01 00:55:34 · answer #1 · answered by brian c 5 · 0⤊ 2⤋
It actually depends on the time of year. Sometimes Diesel is cheaper than gas.
Diesel is very similar to fuel oil that people use in thier homes. When we get close to winter time and through the winter, demand for this type of fuel oil is very high so prices go up. Conversely, people drive less so prices for gasoline usually go down. After the heating season is over you will see prices for diesel go down again and flip flop with gasoline. During the summer more people take trips and drive more, so demand for gasoline goes way up and with it the price. During the mid summer gasoline is usually more expensive than diesel.
2007-10-31 02:35:53 · answer #2 · answered by Louis G 6 · 1⤊ 2⤋
Because the world's economy runs on diesel, that's why. Everything that you buy is moved on diesel powered equipment. The food you eat is planted by a diesel powered tractor, harvested by the same tractor, taken to the factory by truck, then deliverered to the store by truck where you buy it at. Same with the clothes you wear, the car you drive, the gas you put in the car, etc. Even the oil imported from overseas comes on a tanker powered by diesel engines. With that in mind, remember the laws of supply and demand. People want more products, so more diesel is used to get those products to the store where you buy it.
2007-10-31 15:43:32 · answer #3 · answered by largecar8 4 · 0⤊ 2⤋
Louis is right....diesel and heating oil are basically the same so when demand for heating oil goes up so does the price of it and diesel. Other factors too like an increase in shipping via semi-trucks which use lots of diesel and whether refineries are producing enough or there's enough in storage/transit.
2007-10-31 05:59:28 · answer #4 · answered by paul h 7 · 0⤊ 2⤋
Supply and demand. Nobody will sell diesel for less than it costs to make (at least not for long), but other than that the price as little to do with the cost of production.
2007-10-31 01:22:57 · answer #5 · answered by Brian A 7 · 1⤊ 3⤋
In 2006, the big three US oil companies had a combined total PROFIT of over $72 billion. So, knowing that, the answer to your question is "because they can".
2007-10-31 01:32:51 · answer #6 · answered by NorthStar 3 · 0⤊ 3⤋
another way of gouging the public
2007-10-31 00:51:50 · answer #7 · answered by jim m 7 · 1⤊ 2⤋