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Old 11-26-2008, 03:30 AM
keelec keelec is offline
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I was looking at the Diesel prices today.

This spring, Gasoline - pushing $4 / gallon
Diesel - pushing $5 / gallon

I.E. 20% difference.

Now:
Gasoline - $1.50 / gallon
Diesel - $2.50 / gallon

I.E. 40% difference.

So, since I wasn't paying much attention to Diesel 3 or 4 years ago (pre-Katrina), I looked it up.

Diesel prices about $1.50 / gallon, or less than a quarter higher than gasoline.

So,
Why is there a 40% difference now, when there was a 20% difference earlier in the year, and perhaps a 10%-20% difference pre-Katrina?

I would imagine this will take a bite out of the dream to bring in more small Diesel vehicles to the USA.

Perhaps it is time to look for bargain priced Diesels
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Old 11-26-2008, 05:23 AM
john galt john galt is offline
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Quote:
Why is there a 40% difference now, when there was a 20% difference earlier in the year
Supply and demand. This is heating season and lots of folks heat with fuel oil, which is essentially the same as diesel motor fuel.
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Old 11-26-2008, 05:44 AM
keelec keelec is offline
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Oh, yes,
I forgot about that.

However, one should see a spike in the Diesel vs Gas prices every winter then.

Thank God I don't have a $4/gallon contract for heating oil.

Another thing I was thinking about was a hit from the Ultra Low Sulfur requirements.
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Old 11-26-2008, 05:52 AM
john galt john galt is offline
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Quote:
one should see a spike in the Diesel vs Gas prices every winter then.
yup, that's what happens every winter up here.

Quote:
Another thing I was thinking about was a hit from the Ultra Low Sulfur requirements.
...more of an excuse to raise the price. ULSD has been around for years, since 2005 here.
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Old 11-26-2008, 08:40 AM
keelec keelec is offline
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Quote:
Originally posted by john galt:
...more of an excuse. ULSD has been around for years, since 2005 here.
Well lots of excuses.

Fuel Prices in the USA spiked following the Katrina Hurricane on August 29, 2005.

ULSD fuel requirements are apparently being phased into the USA from September 2006 to June 2010.

So, with all fuel prices being up post-Katrina, the impact of the phase in might not have been readily noticed. However, now that fuel prices have been falling back to pre-Katrina levels, the impact may be more readily noticeable.

Anyway, the prices seem quite different, and will undoubtedly affect future sales of small Diesel vehicles. Why should I pay 40% more to fuel a vehicle that only gets 25% better fuel mileage than it's gasoline counterpart? And, of course, also pay more for the Diesel at the dealer.
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Old 11-26-2008, 10:17 AM
john galt john galt is offline
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There is no reason to promote diesel cars in the US. The US is the big gasoline market in the world. Surplus gasoline from Europe is imported into the US. All of the diesel produced in N.America is sucked up by trucking, railroads, aircraft, and heating, so I don't expect we will see anymore price advantage of diesel over gasoline in the future. It's also much easier to clean-up gasoline emissions. What few diesel cars get to N.America will be less and less compatible with biodiesel. The US market's love for pick-ups will likely continue to grow. The one niche market I see a possibility for diesel growth is medium and small trucks like the F150 and S10, but they'll likely come from India, Korea, and Japan.
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