Diesel

[urnmor]

I had to drive to Easton Pa and for the first time I saw diesel over 7 dollars. I was very surprised however I was gone only two days and even where I live, the Eastern shore of MD it was hovering around 6 dollars per gallon. a jump oo 20 cents or more.

[Hans627]

No wonder prices are going up for just about everything that depends on transportation (and what doesn't).

[Daquenzer]

there’s a shortage of diesel.

[Slimpockets]

It’s $3.00 for gas and $5.00 for diesel in Georgia. Diesel always goes up in winter when fuel oil is used more but I can’t think of the gap being so big.

[rbs]

how many refineries shut down during Covid? how many reopened? maybe big oil is making a lot of money without opening refineries? didn't exon mobil post their biggest profit margin ever?

[GOUSC]

Regular- $3.49 and diesel $5.09 here in Mooresville, NC at most stations. $3.31 and $4.69 at Sam’s.

[moosetags]

Diesel always used to hover between regular unleaded and mid grade here in Florida. Now it's over a dollar higher than premium. That just doesn't make a lot of sense to me. I realize that fuel prices are up across the board, but the relative prices should have remained intact. Someone is making a whole lot of money off of this stuff.

Brian

[richard5933]

Demand is up for diesel, supply and refinery capacity is maxed out, so prices are up.

[Warpath]

There are a number of factors.

[moosetags]

Placation from ETA is not really an answer.

Brian

[tjdonahoe]

Diesel always goes up in the winter. Home heating oil and blending it for cold temps

[NovaScott]

New Brunswick Canada diesel up to $3.07 a litre (3.8 litres to US gallon!) = $8.73 USD/gallon ugh

[Doc Foster]

Diesel here in Central Maryland is now averaging $2.00 - $2.20 more than regular gasoline. 2 years ago it averaged $0.20 - $0.30 more than regular gasoline.
Several factors are at play, but primary reason is the current administration energy policies.

[n2916s]

But the oil companies recording record profits has nothing to do with it?

[2012FB]

Originally Posted by n2916s

But the oil companies recording record profits has nothing to do with it?

No. Policy decisions starting two years ago.

[Bill M.]

deleted. I decided not to get banned.

I drive a diesel truck. I beg my wife to let me take her gas SUV when she is not using it.

[SeeMore]

Diesel fuel price has risen ~ 40% this past year (gasoline up 11%) due to numerous factors beyond just domestic production policies/fuel mixes, plant closures, and fossil fuel companies leveraging their profits opportunistically. Domestic diesel producers also shifted product deliveries from mainly domestic to international markets increasing exports to 30 per cent of production. However….

An overlooked reason is the recent decision by the International Maritime Organization requiring oceangoing ships to change their fuel consumption profiles. High sulfur bunker fuels were replaced by diesel in 2020 which increased worldwide diesel consumption by half a million barrels a day (2 per cent of world diesel use) while the Russian invasion of Ukraine also triggered Russian fossil fuel supplies to be widely banned (we imported ~700,000 barrels daily to NE alone). We top off this woeful story with news of production reductions from Venezuela due to mis-management and corruption in the state controlled facilities. OPEC also dropped production by a few million barrels a day to fatten their wallets as well. The worldwide impact is more demand than supply and that is NOT something either party can solve near-term.

[FishByFly]

I’m with Bill. My truck stays parked more and I “borrow” my wife’s car more. Last weekend, I took the Fly Fish Inn to the river so drove the f250. Kills me filling up. With all I read about challenges in the supply chain, finding over the road drivers, cost of goods, sure seems the cost of diesel is not helping matters.

And, diesel has not always cost more than unleaded fuel. I’m going to date myself but I do recall when it was different.

[AlbertF]

Originally Posted by rbs

how many refineries shut down during Covid? how many reopened? maybe big oil is making a lot of money without opening refineries? didn't exon mobil post their biggest profit margin ever?

I’m not a chemist, but I’ll offer some observations.

Refining crude oil involves distillation and separation into its different components. The demand for diesel (and similar products such as jet fuel) has gone up faster than the demand for gasoline. Switching ships from bunker oil to diesel is one of the reasons. Therefore, the price differential between diesel and gasoline will inevitably grow.

Could oil companies refine more oil? Possibly, and that would drive down gasoline prices. That may be harmful to profitability. Certainly Canadian oil producers are enjoying profits after struggling from 2015 to 2020. These will all be strategic decisions that look at the big picture.

A switch to electric cars is not likely to help the price of diesel unless another use is found for all that gasoline, which represents 40% of a barrel of oil. Maybe blending more biodiesel would help, at least if it’s cheaper to produce.

The economic, social and environmental effects of energy policies are myriad and complex. And ultimately, humans pay the cost.

[AlbertF]

Originally Posted by FishByFly

I’m with Bill. My truck stays parked more and I “borrow” my wife’s car more. Last weekend, I took the Fly Fish Inn to the river so drove the f250. Kills me filling up. With all I read about challenges in the supply chain, finding over the road drivers, cost of goods, sure seems the cost of diesel is not helping matters.

And, diesel has not always cost more than unleaded fuel. I’m going to date myself but I do recall when it was different.

I remember reading a long time ago that untaxed off-road diesel was 5 cents per gallon in the early 1960s. That was when many highway tractors as well as farm tractors still had gasoline engines.