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| What the heck is up with diesel prices?? http://www.lostjeeps.com/forum/phpBB3/viewtopic.php?f=5&t=11353 |
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| Author: | Vox Fatalis [ Sat Aug 12, 2006 3:03 am ] |
| Post subject: | What the heck is up with diesel prices?? |
I know that this oil field is closing down for repairs in Alaska, but why is this affecting the cost of diesel so drastically?? My understanding is that diesel is produced in the SouthEast US. But up here in WA, the diesel prices are about 10 cents over Premium Unleaded. WTF? Any knowledable soul have insight on this? On the bright side, my B99 is still 3.049/gal at Seaport Biofuels. 
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| Author: | Cowpie1 [ Sat Aug 12, 2006 4:07 am ] |
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Can't speak to the NW part of the country, but the St. Louis refinery took a hit a while back and it has caused shortages in the Rocky Mountain area. I would suspect that some diesel is being diverted from West Coast and upper Midwest to cover the shortage. I drive a semi for a living and keep up with the various fuel quarks going on. The prices have risen in the upper midwest as well. I would suspect that fuel is being diverted from Northwest and Upper Midwest to cover the shortages in Colorado and Wyoming. I know that that the Governor of Colorado has suspended the hours of service regulations for fuel tanker drivers so as to get fuel into the area. The Alaska crude problem has not been on long enough to be a substantial effect on the supply. Most of that crude is made into gasoline as it is of the light sweet variety that is best for that purpose. It will effect eventually, but the supply is good for now. Keep in mind that ALL crude and refined product prices are the result of speculators just like grain and metals. It takes a while before events such as the Alaska shutdown to actually make an impact. But the specualators are quick to take advantage and bid the prices up. Even though fuel is my primary cost of operation, I have taken the postition that the fuel prices are not effecting anyone. I witness drivers of both autos and large trucks continuing to drive like the price is less than a $1 per gallon, so I figure that the prices are not a problem with anyone. I am more interested in taking as much money home as I can so I have adjusted my driving to conserve. To each his own. 
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| Author: | Vox Fatalis [ Sat Aug 12, 2006 4:21 am ] |
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I've just bought two diesel vehicles in the last five months, and diesel prices go ballistic... I'm cursed. 
Still, diesel refineries being down definitely explains the cost impact. I was unaware of that until recently. I heard that there was a shutdown in Illinois as well. You do have an interesting insight, people witch a lot but don't really do anything about it. I personally like the idea of taking a Big Oil CEO and hang them from one of their refinery towers as an example to all other money-grubbing sensored word in the industry. But since that would be illegal, I'll just drive my TDI and put biodiesel in it for now. 
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| Author: | RFCRD [ Sat Aug 12, 2006 4:49 am ] |
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In addition to the recent refinery problems, was reading where the conversion to ULSD was not going smoothly. In order to not contaminate the new fuel, storage tanks (tank farms) have the be emptied and cleaned. There is very little reserve capacity because this cleaning is currently being done and will continue for several weeks. One article said diesel fuel reserves will be low well into the Fall as anticipated demand for home heating oil will compound the problem. Appears like we are getting hit from all angles. Look at it this way, it's a good time to go heavy on the biodiesel. |
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| Author: | alljeep [ Sat Aug 12, 2006 5:45 am ] |
| Post subject: | |
This past week here in Indy I see $3.19/gal for diesel and $2.85/gal for 87 octane unleaded at most Speedway stations - same prices as Katrina levels. I does seem odd that for years and years, at least in the Midwest, diesel was always WAY cheaper in the summer months than gas. Within one month of buying the CRD, diesel has never been cheaper than gas out here - at least not a significant amount. |
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| Author: | cerich [ Sat Aug 12, 2006 6:04 am ] |
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Vox Fatalis wrote: I've just bought two diesel vehicles in the last five months, and diesel prices go ballistic... I'm cursed.
Still, diesel refineries being down definitely explains the cost impact. I was unaware of that until recently. I heard that there was a shutdown in Illinois as well. You do have an interesting insight, people pain a lot but don't really do anything about it. I personally like the idea of taking a Big Oil CEO and hang them from one of their refinery towers as an example to all other money-grubbing jerks in the industry. But since that would be illegal, I'll just drive my TDI and put biodiesel in it for now. why would you wqant to kill someone over fuel prices? You really think the oil company exec sets the price? My father is a exxon exec on the drilling side, when wall street pushes the price of oil up high enough they go drill in places that they know there is oil but it is more expensive to get out, the margin goes down yet profit up. That is one of the pecular facets of a commodity. |
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| Author: | Ripster [ Sat Aug 12, 2006 8:37 am ] |
| Post subject: | |
Having been through a time of long gas lines at the pump, and owning a diesel at the same time, the added benefit you may have forgotten is that when the lines get long, the line at the diesel pump, well there is not one, you drive in and drive out, while the gas lines are long or out of gas. You will be glad you have a diesel when prices or supply are tight, at least you will proabably be able to fill up. Price is relative to your budget. |
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| Author: | Cowcatcher [ Sat Aug 12, 2006 10:41 am ] |
| Post subject: | |
I paid $3.63 for B20 at the only place that has it here this week. Dino starts at $3.37 and goes up to $3.79. Two weeks ago in Olympia I paid under $3.00. BP's Alaska problem should not be the answer either as most of it does not go to domestic diesel as it is too high in sulfur, or so I am told. |
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| Author: | Cowpie1 [ Sat Aug 12, 2006 10:54 am ] |
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Cowcatcher wrote: I paid $3.63 for B20 at the only place that has it here this week. Dino starts at $3.37 and goes up to $3.79. Two weeks ago in Olympia I paid under $3.00. BP's Alaska problem should not be the answer either as most of it does not go to domestic diesel as it is too high in sulfur, or so I am told.
Having lived in Alaska and dealt with the this, I am surprised that this misconception that most of the oil does not go into our domestic consumption still persists. The only product in which most goes to other countries from Alaska is Coal. The St. Elizibeth mine supplies a large part of Japan's coal needs. As for the oil, most makes its way to various parts of the U.S. west coast. The oil from Alaska is light, sweet crude. It is lower in sulfer than Saudi or Venezualan crude and is ideal for gasoline requirements of California. That being said, since crude prices are based on world spot market, there probably has been some Alaskan crude that has been delivered elsewhere at one time or another. There is no incentive to deliver most of it all the time to other places than the U.S. west coast. Besides, if the argument that the oil from Alaska is used to offset our trade imbalance with other countries, who cares. The price for ALL light sweet crude is the same at any point in time, regardless of origin. |
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| Author: | railguy [ Thu Aug 17, 2006 2:05 pm ] |
| Post subject: | |
Some comments here: First, there really is no such thing as a "diesel refinery." Refineries take crude oil and refine it into various products, all the way from asphalt to benzene. Diesel is a light oil product. Gasoline is even "lighter." Depending on the crude oil and what is most in demand or most profitable, the refiner can adjust what product is produced (e.g., more gasoline, less diesel or more diesel, less gasoline). Second, what most Americans don't understand is that gasoline may be what gets them around (except for us diesel vehicle drivers), but diesel fuel is what runs the economy. Worldwide demand for diesel with the strong economy we've had (though I think that's about to change) has tightened supplies, forcing prices up. If the economy tanks, diesel demand will drop significantly and prices may soften. Finally, diesel fuel prices are a symptom of how sick our energy situation is. The US is nearly hopelessly dependent on foreign oil from countries that are hostile to us. All the hoopla about alternative fuels and more US production is just feel-good hype. None of those sources will likely satisfy our current appetite for fuel--and if those sources even do come on line, the fuel from them is going to be very expensive. So, the US is just going to have to figure out how to use less oil. More fuel efficient diesel vehicles should be part of that program. The days of cheap fuel are gone, probably for good. |
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| Author: | TDI4BY [ Thu Aug 17, 2006 2:47 pm ] |
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This is sad, I just paid $2.86 a gallon to fill the wifes Suburban on base this morning and my local station has diesel for $3.50 a gallon. A gasser getting 19mpg's would cost the same to drive as the CRD at those prices. !!!!!!!!! |
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| Author: | Marlon_JBT [ Thu Aug 17, 2006 5:29 pm ] |
| Post subject: | |
Hmm... I haven't paid over $2.99/gal for diesel in the detroit area since I've had my Liberty... (June 23, '06) Regular unleaded has dropped to $2.79 however. Diesel at some stations has softened somewhat, around 10 cents or so. Prices still haven't come to Katrina levels... that was about $3.39. |
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| Author: | spoonyG [ Thu Aug 17, 2006 6:34 pm ] |
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$3.29 is the average I'm seeing in northern Colorado. It's a little frustrating when I think I got rid of my Wrangler so that I wouldn't pay so much for fuel. A year later, I'm wondering if that will ever be true. |
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| Author: | oldnavy [ Thu Aug 17, 2006 7:24 pm ] |
| Post subject: | |
I paid $2.54 for RUG today in Sikeston MO and two blocks down the street the price for RUG was $2.49 and diesel was $2.79 a gallon. 
The Magnum averaged 26 mpg with 50/50 C/H driving, not too bad.
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| Author: | tvine [ Thu Aug 17, 2006 8:03 pm ] |
| Post subject: | |
Diesel in Iowa is running between $3.199 and $3.399 per gallon. Unleaded Plus is now $2.739 (E10 blend with state tax break). Regular Unleaded is $2.839. Soy Diesel (B100) is running $3.10. |
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| Author: | TDI4BY [ Fri Aug 18, 2006 2:36 am ] |
| Post subject: | |
oldnavy wrote: I paid $2.54 for RUG today in Sikeston MO and two blocks down the street the price for RUG was $2.49 and diesel was $2.79 a gallon.
The Magnum averaged 26 mpg with 50/50 C/H driving, not too bad. I want a magnum........ I am thinking of an XJ for a wheeler 4x and a magnum for daily driving. I am not quite ready to bail on the libby just yet though. 
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| Author: | no-blue-screen [ Fri Aug 18, 2006 3:32 pm ] |
| Post subject: | |
Yesterday, I filled up on Diesel in Fruitland, MD down on the wonderful eastern shore. I paid $2.85 a gal for Diesel. Normally I don't drive around down there though...so my local BP is where I get my fuel. The price there has been fixed at $3.09 for at least 2 or 3 months. The difference in price is 24 cents. Now if I had a completely empty tank and put in 20.5 gallons the BP would cost me $4.92 more to fill up. But since I usually only put in anywhere from 16 to 18 gallons when I fill up I will use 18 gallons. The extra cost would be $4.32 per fill. It may not seem like a ton of money, but for someone who fills up once per week it would cost them an extra $225 per year. In fact, just a ten cent difference using the 18 gallon + fill once per week scenario would net an additional annual cost of $94. My wife always says...why the heck are you worried about 5 or 10 cents when it is only an extra $2. That is when I explain to her what happens when you don't look at the big picture. That is why I say...use gasbuddy.com and find the cheapest stations in your area..and support them. The stations with higher fuel prices won't move fuel if we all did this...but the big problem is people don't look at the big picture and they subscribe to the extra $2 per tank and the fact that they are lazy and can just pull up without waiting....oh well. |
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| Author: | RTStabler51 [ Fri Aug 18, 2006 3:55 pm ] |
| Post subject: | |
My g/f makes fun of me because I'm always noticing the prices of the different fuels and bitching when I go down south because its so much cheaper! |
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| Author: | no-blue-screen [ Fri Aug 18, 2006 4:12 pm ] |
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heh...yeah my wife is working on her masters degree and it makes me laugh when she refers to cheap gas stations as sell "watered down gas". Or she will say...are you sure my car will run okay on that gas? Oh well, I guess if she was really smart she wouldn't have married me.. 
Oh, I and I had to resort to the above math after trying unsuccessfully to explain how many cases of beer I could buy will all the money saved on fuel...oh well again 
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| Author: | japerry [ Mon Aug 21, 2006 9:24 pm ] |
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Seattle gas prices is showing the Biodiesel at the top of the cheapest. http://seattlegasprices.com/index.aspx?fuel=D I'm just glad I have a Mercedes running on 100% WVO. Until diesel prices come down, the CRD isn't going to get much action. |
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