Can anyone explain why diesel prices are higher than gas? When I bought my diesel truck several years ago, diesel was about 20 cents lower than gas. It was explained to me that because diesel requires less refining than gas, the price would always be lower. So how come it is now 20 cents HIGHER than gas???

RIDE ON!

Latest rumor is that they're changing to the ultra low sulfur and have to drain the tanks, etc. - which means extra expense through the entire supply chain.  Which gets passed on to you and me.

It's all a big conspiracy theory though...

LAXPatrick

Its a good excuse to line the pockets of the politicans who support big oil.Why do you think there is no controll over it and big oil reports huge profits.

it has nothing to do with cleaning tanks,just another excuse.First katrina,then Alaska oil line, now cleaning tanks.BS

This is another rumor I had heard, reliable source, but you know how that goes.  It was that we are actually getting much of our gas from Europe.  They are making so much diesel, a bi-product of gasoline, that they have alot of gasoline in surplus to get the diesel they need so they ship it here.  So, we are not producing the same quantity of gasoline and therefore have less diesel, making us import some of that as well.

I tried to word that as best I could so as not to offend any English with thier "excess gas" problem!!  

All 2007 and newer Diesels can only use the ultra low sulphur fuel.New EPA regulations.Right now diesel is at 500ppm sulphur I believe the ultra low sulphur is around 15ppm.Diesel here in Michigan is btween 2.99-3.19 a gallon.

Mike

You big whiney babies. Without BIG OIL providing you with fuels, you'd have to ride those ponys to a show or a camping trip. And since when do the feds have any constiutional right to determine how much money a company can or should make? Have you noticed its the traders that react to every sneeze in the middle east driving up the price per barrel? You should be more concerned about federal regualtions which are manadating 18 different fuel blends,making the buliding of new refineries impossible, lawsuits by environmental groups blocking new drilling and production in this country. Despite the fule prices, its available anytime ,anywhere we want it. I'd rather be paying 3 bucks a gallon and be able to buy it than with "price controls" which would make it 1.50 but hard to come by.

Even babies need a little vasoline petrolium now and then.Te Hee

I did a lot of reading lately on what is driving the price of diesel up.

I talked with a neighbor who is the president of a large oil pipeline.

The Refineries had to upgrade their refineries last Spring. His company spent over $350 million to change from Low Sulfur to Ultra Low Sulfur (ULSD)  This was mandated by the EPA because all new diesel engines built after Jan 2007 will require ULSD. This upgrade did not allow them to produce any more fuel than they did prevously. So they had to spend $350 million just to stay in the market and sell the same number of gallons of fuel as befor the new regulation. They are currently producing at around 2 ppm of sulfur.  Well below the 15 ppm mandated by EPA. I asked about washing or cleaning tanks and pipelines to remove residule sulfur prior to storing/pumping the new ULSD fuel. He said at 2ppm, the fuel is so clean that the small amount of sulfur contamination from tanks and pipes still would not push it over the 15 ppm.  So his company is not cleaning out all it's storage. As a storage tank empties completely, they fill it with the new ULSD.

They also converted their Asphalt producing plant to make Diesel fuel. This also was very expensive and cost over $200 million. This will increase their capacity to make more diesel. Almost every refinery in the west that used to make asphalt has made this switch and asphalt prices are tripling because it has to be shipped in from the East.

He also stated almost every oil refinery in the country is adding new capacity to their current refineries. They are using the big earnings from this year to fund those upgrades. It's too hard to get EPA approval for a new refinery. But it is possibly to add to existing plants. They are forecasting diesel prices to stay high through next spring. But expect it fall in relation to gasoline next spring summer as the new refinery capacity comes online and the current shortages caused by the change over to ULSD pass.

The Denver newspaper recently had an article stating that Sunoco ( the only diesel producing refinery in Denver) was having to clean tanks and pipe lines. So maybe thier refinery is not producing a 2 ppm product like my neighbors.And they do have to spend the time and money cleaning tanks. The article stated that the Colorado market consummes 60,000 barrels a day and Sunoco produces around 20,000 or 1/3 of the states daily need. If you slow down the delivery of 1/3 of the states daily fuel, it will produce a shortage which will cause prices to jump. As a refinery, would you ship diesel to local station at $3.00 a gallon or to Colorado at $3.40 gallon. The shortage in Denver is affecting prices in all the surrounding states. Compound this with the shortage caused by Katrine in New Orleans last fall and the whole country is feeling it.

I would rather pay $3,40 a gallon for fuel and have it ready to go, know it doesn't effect my warranty that to hassel with converting french fry grease at 50cents a gallon. It's just not worth the hassel to me for the 100 gallons of fuel I go through a month.

Thank you painted horse... Finally some reputable info.

We own two "sleds". A '99 Explorer with 130,000 miles and a '97 F250 PSD with 180,000 miles. The SUV is required for my hubby's job as a rural mail carrier and we have to have the truck to pull the trailer.  We are compulsive about engine maintanence so both are in excellent condition. Both get 18 mpg.

I "inherited" a 1980 something S-10 this spring and started driving it as a daily vehicle to keep the miles off the big truck, but the S-10 only gets 15 mpg! It has 306,000 miles.

I would LOVE to have a teeny weeny 50 mpg car to go to work, grocery, etc. But we can't afford a new car. The three we have are all in good condition and they are PAID IN FULL.

So I guess I am one of those people you will see driving all alone in my fuel guzzling "sled". Will you please tell me how to hook my gooseneck trailer to a Mini-Cooper?

RIDE ON!

Thanks for the info paited horse,Diesel is $3.45 where I live.

Converts fry oil....will that work if a tree hugger is squeezed into the converter ? after they eat frys ?

Two birds with one stone!

Gas stations can continue to sell the low sulfur diesel until 2010. Problem is nobody wants to install another system to store and pump both diesel grades. Especially since it will be obsolete in 3.5 years in 2010.

Gas stations have to sell the new ULSD this fall, carrying the old low sulfur fuel is optional. Say goodbye.

My husband and I are farmers- we grow soybeans, among other pursuits. If you want to support the farmers then please send your gernerous contributions to

Farmbabe

$$$$$ no money ave

michigan

now you'll feel so much better about yourself and do the right thing!

Reminds me about this:

How do you make a small fortune by farming ???

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Start with a "large" one

Farming isn't a bad living. Like anything else, you just have to watch your spending and do things right. What I HATE is this feeling sorry-pity-party people have for farmers- this feeling nobel  because I " support the farmers" crap. lets double the price of milk and see how much suppport we get. Buying biofuels because your supporting the farmers is garbage- you're buying the stuff becuase its a better deal. Nothing wrong with that,just don't justify your choice by saying its because your trying to be chairitable.

Tried chicken farming once.

Didn't do too good.

wasn't sure what I was doing wrong.

Did't know if I was burying em too deep or not givin em enough water.

I should have added " some degree of intelligence.........."

Can we run the new ULSD fuel in our older trucks, or will we need an additive or what is the deal with our older diesels. 

BTW, I paid 3.29 for fuel in Illinois and 2.88 for fuel in Indiana.  It runs about 3.08 here in Ohio.

Check Flying J's website they list the price of fuel at ALL of their truck stops.

http://www.flyingj.com/fuel/diesel_CF.cfm?state=ALL

Be glad you're not in the Intermountain West right now, With diesel at $3.40-$3.50 a gallon.

 And yes you can run ULSD in your current diesel. Supposedly the refineries have added the suppliments to add back the lubercating qualities of sulfur.

$2.79 last night at the new Wal-Mart (Murphy) in Lawrenceburg, Ky.

Could have got it for $2.74 if I had some kind of card?????

Cost me more cause I used CASH?????

Since when is cash hard to spend????

Painted Horse - thanks for the link to Flying J.  Don't know why I didn't think of that...hubby used to be a truck driver.  Looks like we'll be fueling in TN since it's about 30 cents less there than AL.

RIDE ON!

Dwight (Mrs)

If you're goin' down I-65, KY exit 2 (Franklin) is (usually) the cheapest fuel between Louisville and Nashville.  I fill up there and can get to the south side of Birmingham with no problem.  Offhand, the only FlyingJ I can remember along that route is on the northside of Birmingham, but my memory could be wrong since I can get from KY exit 2 clear to my destinations (Athens, Guntersvillle, Oneonta and Birmingham, AL) without another stop for fuel.

If I remember correctly, you're goin' to Cherokee Trailride for the holiday. Please, let us all know how it goes!! Hope its great and the weather cooperates for ya!

Tame the beast within - Ride!

Hey Backin3 - thanks for the tip!  We were actually thinking of stopping in Franklin anyway for a lunch break since there is a Cracker Barrel there.  I work for CB and we try to stop there when we are on the road because I can use my discount!!

Yes, we are going to Cherokee (good memory!).  I've been watching the weather reports. Looks like the hurricane that I was worried about is staying to the east so we won't have bad rain to deal with.

Man, I am getting excited! Three more days!

RIDE ON!

Dang it, I'll get the hang of this one day!!

The diesel plaza's  are on the other side of I-65 from the Cracker Barrel. There are 2, right across the streest from each other. Prices usually the same, just choose your station. I usually stop at the Marathon/ Burger King, but have used the other, too.

Also, there are a LOT of Pilot Truck Plaza's along I-65.

Have a great weekend!

Tame the beast within - Ride!