Which One Costs More To Make From Crude Oil, Gasoline Or Diesel?

Discussion in 'Science and Technology' started by Eightball, May 10, 2005.

  1. Eightball
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    Eightball Senior Member

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    With diesel in many areas(u.s.) now being priced at or above unleaded regular, I would like to know which fuel, gas or diesel is the least costly to refine from Crude?

    As long as I remember, diesel was always cheaper than gasoline by a pretty good margin, but when diesel p.u.'s started to become quite popular, diesel for some strange reason started to become more expensive?(lol)

    Laying aside, "supply and demand"..........which is the cheaper to make?
     
  2. Merlin
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    Merlin Active Member

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  3. insein
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    insein Senior Member

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    Gas whether diesel or rgeualr is one commodity that does not behave normally in a free market. Due to its nature, many people are dependent upon it and often have to pay any amount to complete tasks such as buying food or going to work. Therefore, supply and demand goes out the window and limited price gouging occurs. How else do you explain a gas station selling for $.15 cheaper then a competitor 1 block away. People go to the first station they see in most instances. So the more expenisve owner still makes a profit by casual traffic.

    ITs such an odd market occurrence and hard for me to fathom how it got that way.
     
  4. Comrade
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    Comrade Senior Member

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    I think that when gas expenses for the private consumer become more than what is still a fraction of their total expenses, we'd see more dramatic market forces come into play. But Americans are still too rich to worry much about an extra dollar or two at the pump.
     
  5. ScreamingEagle
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    ScreamingEagle Gold Member

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    I think diesel started going by the wayside as more and more lightweight engines were made. Diesel burns hotter and the lighter engines can't take the heat as well as the older heavier cast engines.
     
  6. LesGas
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    LesGas Rookie

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    Is any of that increase in price happening because of the low sulfur refining that will be set to go in to regulation next year? That will be a huge boost to the Diesel Auto market, in fact I believe MB is already saying that they will be importing moreof their diesel models.
     

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