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rawhide
Advisor

i want to know

can anybody tell me why diesel fuel has went up 60 cents a gallon in the past week and gas not a penny?

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10 Replies
Kay/NC
Honored Advisor

Re: i want to know

Demand? 

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idalivered
Advisor

Re: i want to know

Whatever the market will bear. Diesel and heating oil are pretty much the same thing.

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Nebrfarmr
Veteran Advisor

Re: i want to know

Our local paper had an article on that.  It turns out that there are actual spot shortages on fuel.

One conspiracy theorist around here says it is to get farmers to stop fighting the Keystone Pipeline.

Others think it has more to do with refineries having delays switching over to winter blends.


Either way, there have been lineups for diesel fuel, at least in parts of Nebraska, with some terminals saying that the tank is empty as soon as more arrives.

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rawhide
Advisor

Re: i want to know

last tuesday diesel in our town was 3.42 and last nite it was 4.26  andif the is a "spot shortage" than go somewhere else to get it. you can do a lot of hauling for 6or 7 thousand dollars

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k-289
Senior Advisor

Re: i want to know

Harvest is pretty much over so I'm not quite sure the excuse would be demand unless producers are taking delivery for next year---jet fuel and heating oil are much in the same and our local folks probably use considerable amounts of propane and electricity for heat than have an oil burner stove---sometimes it takes a while to quell a stampede---

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GoredHusker
Senior Contributor

Re: i want to know

Look at the weekly stocks.  In the last month, distillate fuel oil (diesel) stocks have fallen 21 million barrels.  It's not domestic demand that has gone up.  Most people have either forgotten or don't know that we export refined fuel.  When the U.S. dollar is depressed, we actually export a lot.  The reason diesel fuel has gone up so much in the past month is the same reason diesel was about a dollar or so a gallon higher than gasoline in 2008.  It's because of the amount of diesel fuel we've been exporting the past 30 days.  Other countries utilize diesel powered passenger vehicles while the U.S. mostly relies on gasoline.  This is why there's such a big spread. 

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rawhide
Advisor

Re: i want to know

i checked toniteand gas is up 20 cents and diesel is up 93 cents since last tuesday

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Kay/NC
Honored Advisor

Re: i want to know

That's what I was thinking...when I made my response about demand.  Had no idea of the export piece of this puzzle. 

 

Whenver I want my gasoline price ot drop 40 cents a gallon, I just have to cross the state line to VA, and their taxes are so much lower than the NC ones, it is that much difference for taxes alone. Then agian, the roads suck on that side of the line, so I guess you get what you pay for....

 

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k-289
Senior Advisor

Re: i want to know

I find it interesting that on one hand we hear all of the wrangling about lack of raw product such a needing more crude ---we can't drill enough due to epa etc. ---and then export the saving responsible actions of the domestic business groups seems to take the luster out of we can't drill enough---pretty much adds to the suspicion of Keystone XL  sending it's product off shore--   

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