Diesel Prices
July 28, 2016 at 4:25 p.m.
By -
I would like one of your readers to provide me with a reasonable explanation as to why the price of diesel fuel does not fluctuate at the same rate as gasoline. Over the past few years, diesel has consistently been a dollar or more per gallon higher than gasoline. For example, until the last few months, diesel fuel was, as I said, higher, but the price suddenly fell drastically.
For the first time in three years, diesel was lowered by some 60 cents per gallon to $2.29, in North Webster, making it cheaper than gasoline, but the price was short-lived. It soon jumped back to $2.89 per gallon with gasoline continuing to fall in price; back to some 70 cents a gallon less than diesel.
At one time diesel fuel was considered a byproduct in the process of refining gasoline, but apparently not the case now. Someone offered me an explanation as the higher cost of diesel, saying it was due to more stringent EPA requirements as to emissions, pollutants, etc., resulting in higher refining costs.
This being the case, it still doesn’t explain the lack of price fluctuations of a few cents per day as does gasoline. Diesel still originates from the same barrel of crude, which, I think is subject to daily price changes on the commodities market.
To me the whole thing smacks of collusion if not profiteering as oil companies have been known to participate in the past.
Any plausible explanation to my questions would be greatly appreciated.
Sincerely,
Gregory S. Wiggs
Pierceton[[In-content Ad]]
I would like one of your readers to provide me with a reasonable explanation as to why the price of diesel fuel does not fluctuate at the same rate as gasoline. Over the past few years, diesel has consistently been a dollar or more per gallon higher than gasoline. For example, until the last few months, diesel fuel was, as I said, higher, but the price suddenly fell drastically.
For the first time in three years, diesel was lowered by some 60 cents per gallon to $2.29, in North Webster, making it cheaper than gasoline, but the price was short-lived. It soon jumped back to $2.89 per gallon with gasoline continuing to fall in price; back to some 70 cents a gallon less than diesel.
At one time diesel fuel was considered a byproduct in the process of refining gasoline, but apparently not the case now. Someone offered me an explanation as the higher cost of diesel, saying it was due to more stringent EPA requirements as to emissions, pollutants, etc., resulting in higher refining costs.
This being the case, it still doesn’t explain the lack of price fluctuations of a few cents per day as does gasoline. Diesel still originates from the same barrel of crude, which, I think is subject to daily price changes on the commodities market.
To me the whole thing smacks of collusion if not profiteering as oil companies have been known to participate in the past.
Any plausible explanation to my questions would be greatly appreciated.
Sincerely,
Gregory S. Wiggs
Pierceton[[In-content Ad]]
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