MB accuses Big Oil of conspirinig to kill US diesel market

jerbacher · **Posted:** Mon Jun 16, 2008 12:09 pm

Interesting article about diesel prices on leftlanenews today:
http://www.leftlanenews.com/mercedes-exec-says-big-oil-conspiring-to-kill-us-diesel-market.html

Cowcatcher · **Posted:** Mon Jun 16, 2008 12:39 pm

Thanks Jon. Great article.

UFO · **Posted:** Mon Jun 16, 2008 3:13 pm

I've independently come to the same conclusion. Nothing else explains why diesel suddenly became more expensive than gas and stayed there.

Uffe · **Posted:** Mon Jun 16, 2008 3:39 pm

Diesel prices have jumped in europe as well. There must be great speculation going on, diesel and gas prices here have never been closer than they are now.

bdptp73 · **Posted:** Mon Jun 16, 2008 3:46 pm

It's not bad enough that diesel is priced higher than gas, at the three truck stops in my area where I buy fuel they have "AUTOMOTIVE DIESEL" priced 20 cent higher per gallon than the diesel that the big rigs buy. Isn't all diesel sold in the US ULSD for on road use? Seems if it is the same fuel it should be the same price!!! :evil:

jinstall · **Posted:** Mon Jun 16, 2008 4:18 pm

Uffe wrote:

Diesel prices have jumped in europe as well. There must be great speculation going on, diesel and gas prices here have never been closer than they are now.

Really? Here Diesel is the most expensive fuel now.

Threeweight · **Joined:** Mon May 14, 2007 5:57 pm **Posts:** 679

Silly Germans. Don't they know that the caribou in ANWR are the reason our diesel prices are so high? :evil:

tulsa · **Posted:** Mon Jun 16, 2008 5:09 pm

bdptp73 wrote:

It's not bad enough that diesel is priced higher than gas, at the three truck stops in my area where I buy fuel they have "AUTOMOTIVE DIESEL" priced 20 cent higher per gallon than the diesel that the big rigs buy. Isn't all diesel sold in the US ULSD for on road use? Seems if it is the same fuel it should be the same price!!! :evil:

I think the price difference has to do with tax allocation. Don't you have to have a tax permit to buy the lower price diesel?
Lewis

truckbouy2 · **Posted:** Mon Jun 16, 2008 5:28 pm

Good Article......
Once a week I partake in some BusyWork survey on the Chrysler Group Advisory Board stating basically what would you like to see Chrysler develop. Hybrid This, Hybrid That...You know...That crapola.
Each time I send the same response back to 'em....JUST SELL THE HIGH MILEAGE DIESELS HERE IN NORTH AMERICA, THAT YOU SELL ALL OVER THE REST OF THE WORLD...HELLOOO CHRYSLER, IS ANYBODY
HOME ?????
Big Oil Leverage....Hmmmmm.... I wonder how many EPA kids have gone to college courtesy of the Oil Suppliers ? Might be an interesting study if you could do it. :wink:

Threeweight · **Joined:** Mon May 14, 2007 5:57 pm **Posts:** 679

truckbouy2 wrote:

Big Oil Leverage....Hmmmmm.... I wonder how many EPA kids have gone to college courtesy of the Oil Suppliers ? Might be an interesting study if you could do it. :wink:

If Mercedes logic is right, the big oil guys hate hybrids as much as they do widespread adoption of diesel, as both pose threats to their long-term profit margins. A 45 mpg Prius hybrid or a 45 mpg Jetta or Honda diesel both hit the oil companies profits roughly the same amount. There is just less they can do to discourage hybrid sales.

Unless some public scrutiny is brought to bear on the oil industry pricing of diesel, bringing the price at the pump into proportion with the margins they make off of gasoline, the diesel vs. hybrid battle in the US will be settled before it ever gets started. Not many American consumers will choose a 40 mpg diesel passenger car w/ diesel running $5 bucks a gallon, when a 40 mpg hybrid option exists with regular unleaded running $4 bucks a gallon.

The reality is that with diesel in the US, the oil industry has a captive market. Not like tractor trailer trucks and farm equipment can fuel up with something else, and the overall economy is so dependent on those engines it isn't like we can really use a lot less of the stuff in the short term. I think the oil industry is trying to move America towards a long-term price structure based on diesel being a premium fuel, expecting that their profits will shrink as price reduces overall consumption by passenger vehicles (whether because people buy hybrids to be green or they stop driving as much to save $$).

BlackLibertyCRD · **Posted:** Mon Jun 16, 2008 11:04 pm

bdptp73 wrote:

It's not bad enough that diesel is priced higher than gas, at the three truck stops in my area where I buy fuel they have "AUTOMOTIVE DIESEL" priced 20 cent higher per gallon than the diesel that the big rigs buy. Isn't all diesel sold in the US ULSD for on road use? Seems if it is the same fuel it should be the same price!!! :evil:

That is why I pass through Indiana without stopping when traveling cross country. Fool me once, shame on you, twice shame on me.

Uffe · **Posted:** Tue Jun 17, 2008 2:44 am

jinstall wrote:

Uffe wrote:

Diesel prices have jumped in europe as well. There must be great speculation going on, diesel and gas prices here have never been closer than they are now.

Really? Here Diesel is the most expensive fuel now.

This being Denmark we have special taxes for everything, which means diesel is taxed more lightly than petrol/gas. In effect it means we get to pay nearly the same for diesel and petrol.

So I'll be looking forward to my trip to the south of France, buying the most expensive fuel all the way through germany. If I'm lucky I can do with just one fill-up in Germany

I wonder where I can find prices on fuel in europe, is there some sort of webpage which lists prices in the various countries that you know of?

ATXKJ · **Posted:** Tue Jun 17, 2008 12:49 pm

not for Europe
Gas buddy does USA and Canada
http://www.gasbuddy.com/

MOSFET · **Joined:** Sat Feb 25, 2006 11:40 pm **Posts:** 295

From http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer

Figure 1. What Do We Pay for in a Gallon of Regular Grade Gasoline?

Figure 3. What We Pay at the Pump for a Gallon of Diesel Fuel

From http://www.eia.doe.gov/bookshelf/brochures/diesel

Uffe · **Posted:** Tue Jun 17, 2008 2:42 pm

That's odd. Those figures are misleading AFAIK.

Diesel is EASIER to refine than gas but it requires additional FILTERING compared to gas.

Threeweight · **Joined:** Mon May 14, 2007 5:57 pm **Posts:** 679

Since taxes have not increased, while crude prices and "distribution and marketing" have, the % numbers are way out of whack as well.

danoid · **Posted:** Wed Jun 18, 2008 8:37 am

On the other hand Weber is from Mercedes. In my mind his motives are suspect.

gsbrockman · **Posted:** Wed Jun 25, 2008 9:55 pm

Shouldn't the additonal refining processes of producing 15 ppm ULSD diesel be considered a factor as opposed to the earlier 500 ppm LSD diesel?

I bought my first Dodge RAM 2500 Cummins truck in December 1997; diesel was generally around $0.85/gal; if you were "raped" anywhere, you paid maybe $0.92/gal.

I also have owned a 2000 RAM 2500 24V, a 2003 RAM 2500 HPCR, and now my 2007.5 RAM 3500 MegaCab w/6.7L HPCR with all the emissions krap on it. During re-gen, it burns more fuel to keep the air cleaner. Power is great in stock format with the 68RFE transmission, and I have no intentions of upgrading for lack of power.....the dpf and catalyst may fall off soon enough just in the interest of fuel economy.

Just doesn't make sense to me........but I'm not big oil or an environmentalist.

Greg

MB accuses Big Oil of conspirinig to kill US diesel market

Who is online