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Gas/Diesel price question
Posted on 5/9/22 at 6:11 am
Posted on 5/9/22 at 6:11 am
When did diesel start out pacing the cost of gas? I remember working at Sportsman Marina for years in orange beach on the dock. This was about 20 years ago. Diesel on the water was damn near 1/3 of the price of gas. I never paid attention at on the road fast stations. What makes diesel 1.5 times higher than gas? I figured there’s definitely some oil and gas folks in here.
12
Posted on 5/9/22 at 6:14 am to tiger1616
quote:
What makes diesel 1.5 times higher than gas? I
government
Posted on 5/9/22 at 6:22 am to tiger1616
The modern diesel engine is more efficient than the gasoline engine. About 20% more efficient IIRC. I believe diesel is more expensive for two reasons, improved engine efficacy and more energy density for diesel.
I remember when diesel used to cheaper than gas too. It's also a supply and demand issue. As people started realizing diesel was more energy dense with the price point compared to gasoline they started switching to capture the value. Once the demand increased then the price of diesel followed. Now it's probably at parity with gasoline in terms of price and energy provided.
I remember when diesel used to cheaper than gas too. It's also a supply and demand issue. As people started realizing diesel was more energy dense with the price point compared to gasoline they started switching to capture the value. Once the demand increased then the price of diesel followed. Now it's probably at parity with gasoline in terms of price and energy provided.
This post was edited on 5/9/22 at 6:23 am
Posted on 5/9/22 at 6:23 am to tiger1616
Same question could be asked about non-ethanol gas also.
Posted on 5/9/22 at 6:23 am to tiger1616
The marina likely had off road diesel which does not have the hwy taxes applied to it. Here in louisiana off road diesel is currently 25 cents cheaper than hwy.
But i am with you. Recently diesel really started pulling away from gas at the start of the ukraine/russia conflict.
But i am with you. Recently diesel really started pulling away from gas at the start of the ukraine/russia conflict.
Posted on 5/9/22 at 6:25 am to tiger1616
Hydrocracking. It now takes extra processing steps to get the Sulphur content below 15ppm.
Posted on 5/9/22 at 6:25 am to Zakatak
I J’s no idea there were 2 types. But yeah man, here in Helena(south of Birmingham), diesel is anywhere from 5.49- 5.79 depending on where the hell you are.
Posted on 5/9/22 at 6:30 am to TrueTiger
quote:
quote:
What makes diesel 1.5 times higher than gas? I
government
/thread
ProTip: this is usually the answer
Posted on 5/9/22 at 6:31 am to Zakatak
quote:
The marina likely had off road diesel which does not have the hwy taxes applied to it.
Same thing use to apply to farmers also. Whether or not it still is I don't know.
Posted on 5/9/22 at 6:37 am to tiger1616
The cost increased when refineries started producing low-sulfur fuel.
Posted on 5/9/22 at 6:41 am to udtiger
quote:
What makes diesel 1.5 times higher than gas? I
government
quote:
/thread
Common sense Tip: this is usually the answer after follow the money
Edited
Posted on 5/9/22 at 6:42 am to Dock Holiday
quote:
Hydrocracking. It now takes extra processing steps to get the Sulphur content below 15ppm.
^^^This^^^
Plus sulfur acted as a lubricant for diesel engines. Now they must add and extra lubricant to make up for the lubrication the extra sulfur did.
This post was edited on 5/9/22 at 6:45 am
Posted on 5/9/22 at 6:43 am to Macfly
Last price flip diesel > gas was around 2005-2006 or so, it's never come back.
In '01 I bought a diesel 3500, diesel was on average $.50/gal cheaper than gasoline.
In '01 I bought a diesel 3500, diesel was on average $.50/gal cheaper than gasoline.
Posted on 5/9/22 at 6:59 am to leeman101
quote:
^^^This^^^
Plus sulfur acted as a lubricant for diesel engines. Now they must add and extra lubricant to make up for the lubrication the extra sulfur did.
Another side benefit of high sulfur content was reduced biological contaminants during storage. Now, you have to buy an additive for that.
It creates problems in diesel stored for emergency generators/fire pumps, etc.
Posted on 5/9/22 at 7:16 am to leeman101
quote:One of the things I’d never wondered about, but is interesting information.
Plus sulfur acted as a lubricant for diesel engines.
Posted on 5/9/22 at 7:39 am to llfshoals
The reasoning was to combat acid rain. When combusted, the sulphur is emitted as SO2, and can form H2SO4 in the atmosphere, i.e. sulfuric acid... acid rain...
It's not likely we will ever go back to not hydrocracking, and it takes lots of hydrogen to get below 15ppm as mandated.
Synthetic diesel can help fill a gap, but the wacko's hate pipelines and natural gas production... so here we are...
It's not likely we will ever go back to not hydrocracking, and it takes lots of hydrogen to get below 15ppm as mandated.
Synthetic diesel can help fill a gap, but the wacko's hate pipelines and natural gas production... so here we are...
Posted on 5/9/22 at 8:19 am to Dock Holiday
Good information. Thanks
Posted on 5/9/22 at 8:28 am to tiger1616
Having to fill up my boat every few weeks I can attest that diesel used to be cheaper but now I pay 6.12 a gallon at the marina near my home. And it is off the road diesel as someone mentioned and not subject to some taxes. Sucks tho to be paying over 6$ a gallon
Posted on 5/9/22 at 8:28 am to tiger1616
(no message)
This post was edited on 10/26/22 at 11:32 am
Posted on 5/9/22 at 8:52 am to tiger1616
Ultra low Sulphur diesel being forced here.
Instant reduction in domestic supply.
Example:
Refinery makes 500k barrels of day of diesel.
Ultra low Sulphur now mandated...
They retrofit/upgrade part of plant. Cant/won't do it all.
They now make 250k regular diesel and 250k or Ultra low sulphur..
They can still send the regular diesel overseas.
Domestic supply reduced by 50% overnight.
There is a reason diesel used to be cheaper than gas. Popularity has changed some of the demand. Most is done due to regulation reducing supply.
Edit: worked on a job that was a rerofit to the new requirements. Refinery wouldn't roll it all over due to costs. It's actually cheaper and easier on the equipment (at the time) to make the regular diesel. They just sell it overseas.
Instant reduction in domestic supply.
Example:
Refinery makes 500k barrels of day of diesel.
Ultra low Sulphur now mandated...
They retrofit/upgrade part of plant. Cant/won't do it all.
They now make 250k regular diesel and 250k or Ultra low sulphur..
They can still send the regular diesel overseas.
Domestic supply reduced by 50% overnight.
There is a reason diesel used to be cheaper than gas. Popularity has changed some of the demand. Most is done due to regulation reducing supply.
Edit: worked on a job that was a rerofit to the new requirements. Refinery wouldn't roll it all over due to costs. It's actually cheaper and easier on the equipment (at the time) to make the regular diesel. They just sell it overseas.
This post was edited on 5/9/22 at 8:54 am
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