dropping fuel prices

[Silver R/T]

finally they're dropping a bit, I wonder how low they'll go until greedy oil companies realize they wont make as many billions selling overpriced fuel.

[Brock Samson]

can I borrow someone's decoder ring please?..   

[694spdRT]

Gas went down 10 cents and diesel went up 40 cents in one day. Last I checked diesel was $3.49 and gas was $2.59 for 87.

I was trying to justify buying a Cummins diesel and they keep throwing obstacles at me. 

[RD]

seriously, that is something i do not understand (other than the holiday season coming up).  Why does diesel cost a dollar more now?  When gas was 3.09 diesel was 2.65, now gas is 2.19 here and gas is 3.25.

Can someone oil/gas savvy provide me with an answer?  I just do not get it.

[Vainglory, Esq.]

That I don't particularly get, although demand for diesel has more than doubled in about a year, I think.

[FourSpeedRT]

They have dropped off a bit in Canada here too....where I live it's 99.9 per litre...about 3.30 per gallon(Cdn). Still too high in my estimation. Diesel is 1.10 per liter...not long ago it was cheaper....

[Todd Wilson]

seriously, that is something i do not understand (other than the holiday season coming up).   Why does diesel cost a dollar more now?   When gas was 3.09 diesel was 2.65, now gas is 2.19 here and gas is 3.25.

Can someone oil/gas savvy provide me with an answer?   I just do not get it.

The demand for more diesel over the last 10 yerars or so I can understand. We are seeing more diesel pickups and cars out there then ever before. Refineries have only been setup to process so much diesel fuel.  I can understand diesel being a bit more priced then it once was but I think the reason why diesel is higher now is because of the winter season. They know trucks (which use the most diesel) probably wont be shut off in the cold as much as during the summer. So the truckers will use more fuel and the holiday shipping season is just about here.


Todd

[Charger_Croatia]

seriously, that is something i do not understand (other than the holiday season coming up).  Why does diesel cost a dollar more now?  When gas was 3.09 diesel was 2.65, now gas is 2.19 here and gas is 3.25.

Can someone oil/gas savvy provide me with an answer?  I just do not get it.

Nothing changed here regarding fuel prices, we'll be lucky it they stay at this level.
BTW, diesel fuel is cheaper in Europe. In my country diesel costs almost $1 less than unleaded petrol. 

[Duey]

"They" say that the home heating fuel market reduces diesel stocks during the winter, hence they jack the price...always happens in late fall in Canada, D-1 also takes a slight bit more refining than D-2 in the summer but that's only a penny or two per litre (3-5 per gallon)...

Cheers,
Duey

[RD]

so heating oil is derived from diesel fuel?  if that is true, then the price being so high would make sense in the winter.

[694spdRT]

Farmers use a lot of diesel in the fall harvest also. I still don't get the sudden flip flop though....winter heating seasons have been around for a while now. I never remember 40 cent spikes overnight.

[70charginglizard]

Of corse its dropping...demand in the winter is low. Price goes down.
Typical every year.
I garentee you thought come spring they will skyrocket up once again.

[RD]

2.95 for diesel now

[tin_soldier]

diesel fuel is the same thing as your heating fuel.   It is just a different color.   The additive was added so that if trucker got pulled over the cops would now if they were running heating oil or auto fuel.    heating oil back than was cheaper the the diesel feul. It is a scam.   

heating is refined the same way.   I am plaing on buying diesl fuel fro the pump and putting in my heatin oil tank.   5 gallons at a time.   sloww and steady wins the race.   better than filling up at 3.25 a gallon at the pump it is 2.95

[253862656971]

What I hate most about the price of fuel is diesel.   Diesel is almost the lowest grade fuel you can buy, borderline kerosene, so it would stand to reason it would be the cheapest right?   Around here it's about $3.25 a gallon.   My dad and I hauled a D8, a blade, and a plow this weekend.   It is 100 miles round trip and we made 2 trips to get the plow and blade, then fueled.   We only got about 10 mpg and it ended up costing over $100 to fill the tanks on the pickup.   Never would I have thought that it would be cheaper to drive the Charger than it is to drive the pickup.   Insurance is even cheaper for the Charger for same the coverage.   Go figure!   

As for the offroad diesel.  Last time anyone I knew was checked was 30 years ago.  We're starting to cheat a little.

[69bananabeast]

$2.41 right now for 87  in San Antonio

[Duey]

so heating oil is derived from diesel fuel?  if that is true, then the price being so high would make sense in the winter.

Racedodge, they're so close on the cracking tower that when you make more of one, you get a fair bit less of the other.  I still think it's marketing crap because highway transport and off-road diesel (construction and trains) still use far more than home oil heating so the effect should not be nearly as large as we see at the pumps.

Anyone in Latta, SC...diesel's 2.49 at the Flying J!

[Bob]

$2.23 SOUTH CENTRAL PA.

[derailed]

Of corse its dropping...demand in the winter is low. Price goes down.
Typical every year.
I garentee you thought come spring they will skyrocket up once again.

[Charger_Fan]

On a related topic, I heard on the radio this morning that our state government (Utah) is hastily trying to pass a bill to allow a bunch of new oil drilling across Utah & Wyoming.
The treehuggers are gonna have to scramble on this one.

[Todd Wilson]

diesel fuel is the same thing as your heating fuel.   It is just a different color.   The additive was added so that if trucker got pulled over the cops would now if they were running heating oil or auto fuel.    heating oil back than was cheaper the the diesel feul. It is a scam.   

heating is refined the same way.   I am plaing on buying diesl fuel fro the pump and putting in my heatin oil tank.   5 gallons at a time.   sloww and steady wins the race.   better than filling up at 3.25 a gallon at the pump it is 2.95

Diesel fuel and heating oil are not the same thing. They are in the same family but different grades. Your heating oil is probably grade 5 or 6 which is a thicker almost gell like. Grade 1 and 2 are what is common in vehicles. Grade 3-4 are used in other applications such as locomotives and big diesel type engines in ships and generators. each grade has different sulfer content and designed to run in specific type running conditions.


Todd

[Todd Wilson]

As for the offroad diesel.   Last time anyone I knew was checked was 30 years ago.   We're starting to cheat a little.

You are lucky. In kansas here the DOT will stop by the sale barn when the farmers are in the arena buying or selling cattle and dip the tank on pickup trucks. They also stop big trucks all the time around here and check.


Todd

[Todd Wilson]

Another interesting thing I learned recently since I work for the railroad.   The railroad tells the fuel company what they will pay for a gallon of diesel fuel for the locomotives. We have a fuel company in town with a contract. They have to watch the price of fuel constantly and come fuel our locomotives when they think they can make their profit. If the price goes above what the contract states  the fuel company has to fuel the locomotives and take the loss on $.  Our situation where I work has 4 locomotives and this can be 12000 gallons of fuel every few days.

What they do is turn in a bid  saying they can fill locomotives for 2$ a gallon.  Wholesale price of the fuel is $1.80 a gallon. They factor in a 20cent profit. But say 3 days from now the wholesale price jumps to $1.95 a glalon then they only get 5 cent a gallon profit. If it jumps above the 2$ amount in wholesale price then they take the hit. The railroad will only pay 2$ or what ever the agreed price was for that bid contract. These contracts only last a week or 2 and then it starts over.

Our fuel company was out on a sunday one time fueling engines and I asked what he was doing out on a sunday. It was the owner of the company. He said diesel is expected to take a jump in price monday morning and he didnt want to get caught on the short end of the contract. So he filled the locomotives today. Thats when he told me about how things work.

I suspect other bigger companys in the transportation industry do the same thing. Something everyday people dont know about.


Todd

[Charger_Fan]

BTW, what's a fuel thread without a new sign pic?

(looks like whoever did the pic was related to Silver)

[derailed]

Interesting info Todd, I looked at a fuel ticket last week and CP was paying 2.24/gallon in Albany. I guess when you buy that much fuel they better give you some kind of break.