Isn't diesel fuel cheaper to produce? Why is it so expensive?
2007-11-09 06:16:33 · 6 answers · asked by pollito 3 in Environment ➔ Alternative Fuel Vehicles
Until recently it was quite a bit cheaper and required no processing.
The government decided sulfur needed to be removed for cleaner burning.
So the producers got one year to raise the prices so they could build the processing facilities with the proceeds.
At the end of last year they actually started processing diesel to remove the sulfur.
Consumers are paying for that processing with every gallon.
2007-11-09 06:23:37 · answer #1 · answered by Kaustaub 4 · 5⤊ 1⤋
Our government has no longer something to do with putting the fee of sophisticated petroleum products. Diesel does fee much less to refine, yet highway utilization taxespersistent the fee up. little or no of what we pay on the pump surely is going to an oil company. lots of the fee we pay on the pump is going in the direction of the taxes imposed by using the federal and exceptionally the state governments wherein the gasoline is being pumped.
2016-11-10 22:57:34 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Supply and demand. All the big trucks use it, as well as trains, generators, and even ships. If dirt was in short supply and everyone wanted it, it would be expensive too. It may not cost that much to refine diesel, but there is only so much diesel that can me made from one barrel of oil, and all the rest of that barrel is only good for gasoline or tar or some other product. So diesel may be cheap, but making it leaves a "waste" of gasoline and other products. If they make more diesel, they are loosing money on all the unused part of that barrel of oil they made it from. So the price of diesel goes up and the price of gasoline and tar goes down until they can just sell every part of that barrel of oil.
Oh, I forgot about the sulfur. Good answer Kaustaub.
2007-11-09 06:21:53 · answer #3 · answered by campbelp2002 7 · 1⤊ 3⤋
Because here in the U.S non one drives diesel except the Mexican or European or Canadian we are in love with Iran fuel and Argentina too!!!
2007-11-11 07:06:42 · answer #4 · answered by Paperino 1 · 0⤊ 1⤋
They " who ever they are " have it down to a science . We no longer get charged by the gallon rather by the mile .
What ever it is you can bet there pockets are full by the way gas prices are . Kind of make you wonder what there doing with all that money doesn't it ?
2007-11-09 08:39:37 · answer #5 · answered by dad 6 · 0⤊ 2⤋
Due to governement policy, I believe.
2007-11-09 06:25:53 · answer #6 · answered by Pradeep 1 · 2⤊ 3⤋