Jump to content

Diesel already is cheaper than gsoline


Recommended Posts

Moderators, go ahead and delete this if you want but I have to comment on the mis-information that the previous thread brought up.

 

1) In SE MI diesel already is 15 - 20% less than regular and has been for over a month. This is an undisputed fact.

 

Heh, I remember reading ad nauseum opinions here explaining that our 10% price delta (favoring gas vs. diesel) was due to the cost to refine...

2) This statement is simply incorrect. Even with the extra processing to meet ultra low sulfur requirements, it is cheaper to make a gallon of diesel than it is to make a gallon of regular gasoline (or E10).

 

3) It is not possible to make gasoline and not make diesel and vice-versa. The percentages of gasoline verses diesel (verses everything else that comes from a barrel of crude) can be adjusted within certain limits.

 

4) The previous few years of high cost diesel were due to a worldwide shortage of diesel. Shortages outside the US had US refineries shipping huge amounts of low sulfur (note not ultra low sulfur) diesel to other countries (this saved them the cost of adding the additional equipment to produce ultra low sulfur diesel).

 

5) Worldwide demand for diesel has cooled because of a> the worldwide recession and b> both China ad India have HUGE new refineries online now that have excess capacity (they wanted some of the money the US refineries were making).l

 

 

 

Notice, no commentary on use of diesel as a fuel for light duty vehicle !

Edited by theoldwizard
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...