Diesel price inversion again

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BernieD

BernieD

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Joined
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Goodyear, AZ
Maybe the price differential between diesel and unleaded regular is swinging back to diesel's favor again. It wasn't that long ago when the differential was over 50? in some places in favor of regular. Driving thru Missouri today we saw diesel prices dropping and regular going up. Flying J and Pilot had both for $3.899. It's still high but maybe the diesel disadvantage because of pump price is swinging around.
 
Yup...not sure why, but the gap has closed to within a dime or so around the area here.  In a couple of places it is almost the same.  I'm sure it won't last though.
 
The difference has been goofy here too but I have assumed it's due to different taxation.
 
Could one of the reasons be that the inventory levels of gas is at a 12 years low and this is the reason for the gas sharp rise in price while diesel inventories are at norman level and thus the price of diesel not rising as much?
 
You don't suppose the price has started to fall because of the upcoming election campaign, do you?

I predict it will fall at least $1.00 more per gallon between now and when the battle gets hot and heavy.

Jerry
 
I predict it will fall at least $1.00 more per gallon between now and when the battle gets hot and heavy.
Click to expand...

Maybe we should start having elections every 6 months!  ::)

Frank
 
I've given up trying to forecast the price of fuel. It has nothing to do with politics other than the taxes the states themselves impose since the US tax has been constant and relatively low. So if you want to blame politicians, blame your local state representatives. Diesel is about 15? a gallon higher in Illinois than Missouri. Same product, same stations, different prices.

But diesel has been fairly plentiful and costs less to produce than unleaded regular but the pricing has been crazy for the last year or two. It should cost less than regular, but????
 
Jerrygroah said:
You don't suppose the price has started to fall because of the upcoming election campaign, do you?

I predict it will fall at least $1.00 more per gallon between now and when the battle gets hot and heavy.

Jerry
Click to expand...

2008 was an interesting year.

Paul
 

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The worldwide demand for diesel is up and continues to rise, while production of diesel remains unchanged. Until more refineries switch some capacity to producing diesel, the price differential won't go away.  In the USA, it's a chicken and egg problem. US consumers love gas engine vs diesel and therefore so do politicians, so there is a strong incentive to stay with unleaded gas production, even though they could get more diesel per barrel of fuel, at a lower cost. And the car manufacturers produce the engines that their buyers want.

Fortunately the popularity of the diesel pick-up is educating a whole generation into the benefits of modern diesel power and also making sure that diesel is widely available. Now if we could just get a small diesel engine in a popular-styled car, there might be a revolution!
 
Fortunately the popularity of the diesel pick-up is educating a whole generation into the benefits of modern diesel power and also making sure that diesel is widely available. Now if we could just get a small diesel engine in a popular-styled car, there might be a revolution!
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There are a lot of good, small, diesel engines produced in Europe. Many foreign cars sold in the US do not bring in those engines in the belief that Americans won't buy them, preferring the high revving, gas guzzling engines.
 
Yeah, I know. It used to be true that Americans didn't buy diesel cars, mostly after the debacle with the unlamented GM-produced diesel of the late 70's. That was a converted gas engine that failed miserably and killed the market for 20+ years. Now that numerous Americans have a positive experience with excellent diesel engines, there ought to be a good market, but the auto industry still has its head buried in 1980 sand. Even VW, with their outstanding small diesels, isn't bucking the traditional wisdom. Nor is Mercedes, even though they successfully sold diesel cars in the USA for 30+years.
 
I've never failed to be impressed by the diesel sedans I've rented many times while visiting the UK. In addition to excellent fuel consumption, they have pretty good performance for the relatively small engine sizes. But that was also true of the newer petrol/gas fueled cars I used to drive in the UK.
 
In southern Utah (Monument Valley area) all prices are over $4/gal. and diesel is still the highest.  We haven't seen any dip out here in the west, nor have we seen the inversion of diesel vs. gasoline.

ArdraF
 
Around our part of TX, there is a $.20 difference between unleaded and diesel, with diesel higher and running around $3.97-4.05/gallon.
 
We first noticed the equal pricing a few days ago driving thru Missouri. We've been in Illinois the last two days and the prices are about equal also where we are (Champaign,IL). On the Pilot/Flying J website for Illinois, diesel prices range from 25? lower to 15? higher than regular, with 5 out the 13 with both fuels having lower diesel prices.
 
When i left Mi last monday unleaded was$4.29 and Diesel was $4.13 at the meijers near my house.

VW is going to put a Diesel in the new Passat that is produced in Chattanooga. I think It's a 2.0L. they say 43mpg for it too.
 
Jerrygroah said:
You don't suppose the price has started to fall because of the upcoming election campaign, do you?

I predict it will fall at least $1.00 more per gallon between now and when the battle gets hot and heavy.

Jerry
Click to expand...

Yeah  The oil companies want him reelected. ;D
 
Gary RV Roamer said:
Nor is Mercedes, even though they successfully sold diesel cars in the USA for 30+years.
Click to expand...
This made me smile, remembering my son's old beat up Mercedes diesel sedan he had back in the mid-nineties.  Being a diesel it had no ignition to cut off the engine.  Instead, it cut off the fuel as I recall.  My son's Mecedes, however, would not shut down, period.  He had to open the hood and cover the air intake to shut it off. ;D
 
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