Posted 2005-11-04 1:57 PM (#32697) Subject: Diesel Prices in California
Veteran
Posts: 161
Location: Chino, CA
I was talking to my horse shoer yesterday and he just got a 2005 F-150. But before he got it he said he had been looking into F-250s and 350s with the powerstroke diesels. But when he was shoeing a horse in Orange County for one of his clients who is the head at a refinery, the asked about what his next truck would be and our shoer told him f250s or 350s with a diesel but then asked him why the diesel prices are so much more expensive since it is basically the junk gas. Well the reply from the refinery guy was that due to the new california regulations on diesel burning cleaner, they also had to make the diesel fuel itself cleaner so in order to do that, they now have to send the diesel to be cleaned twice and not once. This would explain why its more expensive in california at least.
Did this make sense? haha i have a bad habit of writing and not making sense.
Posted 2005-11-04 3:37 PM (#32703 - in reply to #32697) Subject: RE: Diesel Prices in California
Regular
Posts: 52
Location: Loxahatchee, Fl.
Bah Humbug !!! Diesel fuel is the garbage from the bottom of the tanks.
It's the slag that won't burn in a car. The leftovers, and used to be priced accordingly. Exxon made over 10 billion this quarter alone. Don't buy into the oil company crap.
Posted 2005-11-04 6:24 PM (#32708 - in reply to #32697) Subject: RE: Diesel Prices in California
Expert
Posts: 2453
Location: Northern Utah
Low Sulfer diesel is in use now. Ultra Low Sulfer diesel is coming in 2007. Or at least the vehicles that will burn Ultra Low sulfer are coming. That's why GM introduced their revised engine for the 06 model year and Ford is coming with their new powerstroke for 07.
The problem with diesel is that it is used for many purposes. Jet Fuel, Home heating oil, kerosene and diesel are all very closely related products.Consumption of all (except maybe kerosene ) are up. Diesel prices have always increased int he winter months ( with heating oil consumption) and gone down in the warmer months.
But a buck a gallon premium over gas is out of line.
Posted 2005-11-04 7:26 PM (#32709 - in reply to #32697) Subject: RE: Diesel Prices in California
Veteran
Posts: 161
Location: Chino, CA
Well based on my friends, one being in Illinois owning a fleet of 50+ Internationals, macks, and one volvo that even since the 02 Emission controls, he has noticed A LOT more black on the side of his trailers.
My dads old company out of Utah, having a fleet of 200+ Peterbilts, 4 kenworths, and 50+ freightliners, and 2 test volvos, they have reported the same thing.
A fleet of 30 that stays in California, does NOT have as much black on their trailers.
Posted 2005-11-05 1:01 PM (#32714 - in reply to #32703) Subject: RE: Diesel Prices in California
Expert
Posts: 1723
Location: michigan
Hmmm- lets see Oil prices, per barrel soar to record heights, and oil companies profit soar? Is there a connection? Do ya think?
Diesel prices are now falling- so if the oil compaines could charge WHATEVER they wanted, why would prices lower?You say its because of the bad press from record profits. But if they could do whatever they wanted, why lower them at all? Who cares what the public thinks? maybe because there are marekt forces at work...maybe ..perhaps...
I get a kick out of people who complain about gas prices. Recently, the price of a bottle of diet coke went up..funny thing..they never go down again. Unlike fuel prices, they go up ( generally in response to market forces or panicky oil traders who drive up the price of a barrel of crude) and go down when consumption drops or supplies increase. I don't like high fuel prices anymore than the next guy but I don't sulk about and blame the big bad oil man ( that shadowly figure people love to hate) instead I recognize a few things- one, the governement is screwing us on a daily basis with fuel taxes and EPA regualtions that drive up the cost of refined fuel.Two- this is the cost of doing business. If want to drive, there is a cost involved and there ain't nothing in our constitution that give me a "right" to cheap fuel. I don't want the federal government to penalize a segment of our ecomony for making money. i don't want "price controls- they don't work. i want a free market, it works everytime.
Posted 2005-11-05 2:14 PM (#32715 - in reply to #32697) Subject: RE: Diesel Prices in California
Regular
Posts: 52
Location: Loxahatchee, Fl.
No one wants to see price controls. I believe we are all capitalist at heart. At least I am. But you tell me what ever happened to our anti trust laws, and the win fall profits tax. Many years ago the seven sisters (at the time the 7 largest oil companies) were found to be price fixing. You cant tell me it's not happening again. In the 1970 the Govt instituted the win fall profits tax to take the steam out of them. But just remember they a a monopoly. Very few businesses other than oil own the goods from production to distribution. And since they have that kind of hold on the market there must be some kind of controls wether it be anti trust laws or through taxation. The best idea for my money is to organize a boycott of one oil company at a time till their prices fall into line. But consuners wont go out of their way and can't be bothered. But will cry at the price of oil or throw up their hands and say it's the law of supply and demand. What can we do about it?
Posted 2005-11-05 3:10 PM (#32718 - in reply to #32715) Subject: RE: Diesel Prices in California
Expert
Posts: 1723
Location: michigan
The windfall profit tax was inacted in 1980 and was a disaster. It generated signifigantly less revnue that predicted because oil companies figured out a way around it- the tax was applied to domestically produced oil ( older fields) so they slowed down domestic oil production on older fields, imported more and created new fields ( stripper fields) that were not subjected to the tax. A portion of the tax was passed on to consumers ( which most taxes are) The result was not punishing oil compaines but rather it hurt the CONSUMER..me and you in the forum of greater imports and great dependance on foreign oil, reduced supplies and paying a portion of the tax. In other words- it didn't do what you'd want it to do ( which quite frankly I am not sure what you'd want to accompish with a WFT anyway)
If your a capitalist at heart, then act like one and understand that if the oil compaines are making a huge profit, it mean that they product they are supplying is in great demand. There are in fact, many other businesses that make equipment, supply parts, tools,acessories, hauling, manufacturing, and realted industries to the oil industry. Exploration and deveolping new fields isn't done soley by Exxon, there are other compaines that do that as well as smaller oil compaines that sell out to the larger ones. A true capitalist welcomes profits as a good sign and government taxation as a bad idea....
Posted 2005-11-07 11:48 AM (#32782 - in reply to #32697) Subject: RE: Diesel Prices in California
Elite Veteran
Posts: 1160
Location: Denver Colorado
Service stations have to be switched over to low sulfur diesel by Jan. 1, 07 that's when tier 7 emissions laws goes in effect. So all the diesel trucks manufactured after that have to comply. If you look inside your fuel door on trucks built in the last couple of years, they will say use low sulfur only, which is confusing because that fuel isn't available everywhere yet.