Diesel Fuel near $4.00

[TulsaRevolution]

I saw on the news tonight, the national average for Diesel was $3.90

Driving a regular car using unleaded, I had largely blacked out the price of diesel. I do recall looking at diesel a while back, like a year or so ago, the last time unleaded prices spiked. What I had noticed at the time, when unleaded surged from $2.00 to $3.25 here, Diesel was still around $2.50. I was intrigued, and was even researching fuel efficient diesel engine cars (like the 1.8 liter Volkswagen turbo diesel) as a possibility to make it through a new high gas economy.

Now, in 2008, things are the opposite. Unleaded is going for $3.09 here in Tulsa, and Diesel is going for around $3.60 - I hadn't bothered to check the price in a long time until seeing the news about it. Why have the tables turned?

So what gives? My first guess here is that diesel prices are more reflective of the price of a barrel of oil. Unleaded prices spike up as the markets drive up the futures prices and as refinery capacity strains supplies. Diesel seemed more consistent, but I guess the last time I checked, oil was probably around $60.

This really sucks for the economy. I've only stayed keen to the price of unleaded, and suddenly realizing diesel has gone up like 60% overnight is frightening. Everything we buy, practically all consumer goods, are transported on trucks using diesel fuel. We are about to eat a TON of cost increases, more so than you would think by the price of unleaded.

And the god forsaken CPI ignores food and fuel costs. Bunch of rat liars. Inflation over a year ago is probably in the 10-20% range right now, fixing to be higher than that.

[OptionsTrader]

One of the only good government websites for data (I'm sure we pay way too much for it though):

http://tonto.eia.doe.gov

Some general differences defined in 2006, I assume they're valid today:
High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China and the U.S. and a tight global refining capacity available to meet demand.
The transition to low-sulfur diesel fuel in the U.S., which is affecting diesel fuel production and distribution costs.
The Federal excise tax on diesel fuel is higher than the tax on gasoline.

Price charts and lots of data:
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

[Geronimo]

I paid $4.17 yesterday.

[TulsaRevolution]

I paid $4.17 yesterday.

Trucker, or you just drive a diesel engine vehicle? That really sucks either way. By the time I'm paying $4 you will be paying $5

[OptionsTrader]

Just be glad the gas stations still give you liquid fuel with value for Federal Reserve Notes that are asymptotically approaching zero. What a great word asymptotically is.

[Geronimo]

Trucker, or you just drive a diesel engine vehicle? That really sucks either way. By the time I'm paying $4 you will be paying $5

Actually, I should have been a little clearer. It's a company vehicle so they're paying for it.

[TulsaRevolution]

Actually, I should have been a little clearer. It's a company vehicle so they're paying for it.

Oh no, you ARE paying for it, in one way or another.

[Geronimo]

Oh no, you ARE paying for it, in one way or another.

Damn. You just had to go and break through my denial, didn't you? lol

[scooter]

Even at these higher prices, it would still be more efficient for you to have a diesel engine than a gasoline. You get much better mileage.

[Zippyjuan]

The Euro may be stronger now, but they still pay a lot more for gasoline than we do here. They are looking at $7 to $8 a gallon. http://www.eia.doe.gov/emeu/international/gas1.html

[HOLLYWOOD]

http://www.liveleak.com/view?i=034_1200124660 <=== Bush/Chenney NEW FUEL MONETARY SYSTEM VIDEO

[acptulsa]

New regulations on diesel have popped up constantly over the last two decades or so, and each time it has gone up vs. gas. When I was a kid, it was much cheaper. Also, many more vehicles are diesel powered now. Diesel cars and pickups--and even school buses--were pretty much nonexistant then, and many, many medium duty trucks were gas.

For those who still believe in the stock market, this looks like a good time to invest in railroads.

[Zippyjuan]

Diesel used to pollute much more than gasoline. Some of the new requirements have made it now much cleaner than gas.