Widening Gap Between Gasoline and Diesel Prices

[Lou Schneider]

What's interesting is currently crude prices are high due to uncertainty but the major traders are expecting things to settle out soon. Several articles have quoted 6 month to 1 year future contracts dropping to around $50 a barrel.

 

[John From Detroit]

Up another 30 cents overnight here.

Interesting that we actually export oil. We do not need any mid-east oil here in the US.

 

[RayIN]

If you want to learn the background and future situations of this oil shortage, I suggest this Wall Street Journal article: MSN

 

[UTTransplant]

Up another 30 cents overnight here.

Interesting that we actually export oil. We do not need any mid-east oil here in the US.

But our refineries have limited abilities to refine the oil we do have. Therefore we ship our oil out and ship other types in. So yes, we do need mid-eastern oil here.

 

[John From Detroit]

But our refineries have limited abilities to refine the oil we do have. Therefore we ship our oil out and ship other types in. So yes, we do need mid-eastern oil here.

Actually we ship refined oil to other countries

Look up "Splash and Dash" as it applies to this industry.

We have more than enough capacity We EXPORT

 

[Gary RV_Wizard]

US oil import/export is a lot more complicated than just gross oil production vs petroleum product consumption. We are both importers and exporters of crude oil and finished products. It varies by year and even season, but the US is a net importer of crude oil but a net exporter when all petroleum types are combined. We import crude oil for eastern US refineries while at the same time exporting Texas crude from the south and west. We export a lot of jet fuel and diesel because the world market for those is very lucrative whereas gasoline prices in the US market are skinny on profits (yes, even at today's prices). As John suggests, we could supply all our own fuel needs from US production if all US refineries could process US crude oil and the oil refineries were willing to forego profitable exports, but neither of those apply.

 

[Kirk]

Gas tax by state in 2026 ranges from Pennsylvania's 57.6 cents per gallon to Alaska's 8.95 cents. Every state rate is separate from the 18.4-cent federal gas tax.
2026 Gasoline taxes by state

 

[Lou Schneider]

.We import crude oil for eastern US refineries while at the same time exporting Texas crude from the south and west. We export a lot of jet fuel and diesel because the world market for those is very lucrative whereas gasoline prices in the US market are skinny on profits (yes, even at today's prices). As John suggests, we could supply all our own fuel needs from US production if all US refineries could process US crude oil and the oil refineries were willing to forego profitable exports, but neither of those apply.

The true "west" (California and the states they supply (NV, AZ, OR)) don't export crude. CA has some in-state crude production but they have to supplement it by importing both foreign crude oil and because of their ongoing refinery shutdowns, all of the finished products you mentioned. It's a fuel island with no pipeline connections to the rest of the US.

 

[LarsMac]

Prices in Eastern Colorado are down a bit. 4.249 seems to be fairly common.

 

[whiteva]

Someone placed a homemade sticker on a gas pump. "if you would like to feel better call 800 ****** and someone will come out and hold a gun on you while pumping gas."

 

[Gary RV_Wizard]

The true "west" (California and the states they supply (NV, AZ, OR)) don't export crude. CA has some in-state crude production but they have to supplement it by importing both foreign crude oil and because of their ongoing refinery shutdowns, all of the finished products you mentioned. It's a fuel island with no pipeline connections to the rest of the US.

Yeap. And much the same is true of east-of-the-Appalachians refineries. Their crude source is from further east (Europe & beyond) and their refining process is optimized for the types of crude available there.