M

Midwesthonky

Audioholic General
I deal with large chemical shipments every day, all are under contracts. Considering my operating budget has been drastically cut and there is no way in hell they will pass the increases on to customers with higher rates. So we'll be forced to cut the budget somewhere else.......

Gee, so where do you think they'll want to cut??? :rolleyes:
(hint, hint: layoffs)
I also deal with a lot of shipping. Heck I'm in distribution. Shipping is our business. We can pass some costs on to our customers, but we also eat a chunk of it. I can tell we'll be doing some projects to further optimize our routes and cut other costs where we can. My budget for 2011 got slaughtered almost as bad as...no shouldn't go making a Libya joke.

Libya supplies 2% of the world's oil so oil prices went up 20%... yeah, that makes sense. So much for rational markets!
 
Alex2507

Alex2507

Audioholic Slumlord
Yeah, maybe people being free in the Middle East isn't such a great thing after all. :D
The people are fine being free ... free to charge Dave an arm and a leg to tank up his gas hogs.

Dave, get a fofo already. :rolleyes:
 
Warpdrv

Warpdrv

Audioholic Ninja
I always thought there was less refining needed with diesel versus gas.

100% in agreement..

This is full well nothing but a raping of the entire system....

Diesel is cheaper to produce but they take complete advantage of everyone and everything that is involved in transportation.....

How is it possible for diesel on the street to cost 20-50 cents more then gasoline, unless there is profit taking going on...... Nation wide.... wow can you imagine what that investment in futures would yield in these inflated economy times ?!?!?!
 
Shock

Shock

Audioholic General
I deal with large chemical shipments every day, all are under contracts. Considering my operating budget has been drastically cut and there is no way in hell they will pass the increases on to customers with higher rates. So we'll be forced to cut the budget somewhere else.......

Gee, so where do you think they'll want to cut??? :rolleyes:



(hint, hint: layoffs)
They will first layoff the employees who thought it was a good idea to save on fuel costs by buying a truck.......
 
highfigh

highfigh

Seriously, I have no life.
100% in agreement..

This is full well nothing but a raping of the entire system....

Diesel is cheaper to produce but they take complete advantage of everyone and everything that is involved in transportation.....

How is it possible for diesel on the street to cost 20-50 cents more then gasoline, unless there is profit taking going on...... Nation wide.... wow can you imagine what that investment in futures would yield in these inflated economy times ?!?!?!
Cheaper to produce, so the US refineries produce a lot of it and trade for gasoline or sell to outside buyers, if what I read is correct.

The whole thing is BS. Selling price should be determined by actual market conditions, not by what they think will happen. "Our cost may increase, so we need to jack up the selling price by 10% now, just in case..."?

I would like to have done that early last year, before the price of copper jumped up and caused my wholesale cable prices to almost double from one order to the next.
 
Rickster71

Rickster71

Audioholic Spartan
I just can't believe how much more diesel has gone above premium gas prices. I always thought there was less refining needed with diesel versus gas.
http://www.factcheck.org/askfactcheck/why_does_diesel_fuel_cost_more_than.html

EDIT: The article is from 2008, so the tax figures will be higher now.
Q:
Why does diesel fuel cost more than gasoline?
Diesel fuel used to cost less than the more highly refined gasoline. Is there a real reason for this, or is it price gouging?

A:
The main reason is rising global demand, but new environmental restrictions and higher federal taxes also are factors.
 
Last edited:
GO-NAD!

GO-NAD!

Audioholic Spartan
Cheaper to produce, so the US refineries produce a lot of it and trade for gasoline or sell to outside buyers, if what I read is correct.

The whole thing is BS. Selling price should be determined by actual market conditions, not by what they think will happen. "Our cost may increase, so we need to jack up the selling price by 10% now, just in case..."?

I would like to have done that early last year, before the price of copper jumped up and caused my wholesale cable prices to almost double from one order to the next.
That's the free market for you. We have to take the good with the bad. We're the authors of our own misfortune. We (North Americans) buy gas guzzlers and drive everywhere, usually alone. We have nobody to blame but ourselves.
 
HexOmega

HexOmega

Audioholic
Last year I switched from a ~18MPG SUV and a $500/month payment to a ~25MPG compact performance car with a $150/month payment.

I STILL feel like I'm winning the lottery, especially when gas prices go up.
 
majorloser

majorloser

Moderator
http://www.factcheck.org/askfactcheck/why_does_diesel_fuel_cost_more_than.html

EDIT: The article is from 2008, so the tax figures will be higher now.
Q:
Why does diesel fuel cost more than gasoline?
Diesel fuel used to cost less than the more highly refined gasoline. Is there a real reason for this, or is it price gouging?

A:
The main reason is rising global demand, but new environmental restrictions and higher federal taxes also are factors.
I would agree that diesel has the highest demand of all the fuels. But why the higher cost due to environmental restrictions? They've moved to ultra low sulphur fuel at all stations selling diesel and cleaner exhaust emmisions on all vehicles sold. Even stationary engines have move to Tier III or Tier IV standards.

Sounds like BS to me. :mad:
 
Rickster71

Rickster71

Audioholic Spartan
I would agree that diesel has the highest demand of all the fuels. But why the higher cost due to environmental restrictions? They've moved to ultra low sulphur fuel at all stations selling diesel and cleaner exhaust emmisions on all vehicles sold. Even stationary engines have move to Tier III or Tier IV standards.

Sounds like BS to me. :mad:
It looks like it's a combination of things, and with all of us being a captive audience; they can use the slightest excuse to raise prices.:(

This link goes into more detail: http://www.ehow.com/about_5472995_diesel-fuel-cost-gas.html

A few points from the article:
1. The combined taxes for diesel is nearly 7 cents higher per gallon than for a gallon of gas.

2. While refiners were making the EPA mandated sulfur modifications, diesel production was temporarily shut down resulting in shortages, which also pushed prices higher.
3. They're recouping the expenses for the sulfur mods too.

4. The global demand for diesel is high but the amount of diesel which can be refined from a 44 gallon barrel of crude is less than 1/5 of its contents.

5. As refiners produce more home heating oil, the amount of diesel produced drops by a corresponding amount.
 
j_garcia

j_garcia

Audioholic Jedi
Premium has already broken $4 here. $3.97 at the place I go and $4.15 is the highest I saw this weekend in my area.

2. While refiners were making the EPA mandated sulfur modifications, diesel production was temporarily shut down resulting in shortages, which also pushed prices higher.
That was last year though.

3. They're recouping the expenses for the sulfur mods too.
As always; nothing new.

4. The global demand for diesel is high but the amount of diesel which can be refined from a 44 gallon barrel of crude is less than 1/5 of its contents.
Yes, but it is also effectively a byproduct of the refinement process like LPNG is. In other words, they get it from the process they are already doing so it doesn't really cost them extra to produce it.

5. As refiners produce more home heating oil, the amount of diesel produced drops by a corresponding amount.
That's a big one, and it happens every winter. Only now when gas is this high does it become more noticeable. You get better mileage out of diesel though, so even though it costs more, the real world cost is the same or lower than regular gas.
 
Rickster71

Rickster71

Audioholic Spartan
Premium has already broken $4 here. $3.97 at the place I go and $4.15 is the highest I saw this weekend in my area.



That was last year though.



As always; nothing new.



Yes, but it is also effectively a byproduct of the refinement process like LPNG is. In other words, they get it from the process they are already doing so it doesn't really cost them extra to produce it.



That's a big one, and it happens every winter. Only now when gas is this high does it become more noticeable. You get better mileage out of diesel though, so even though it costs more, the real world cost is the same or lower than regular gas.
I never said they were really good reasons.:D It's just what they mentioned in the article.
 
majorloser

majorloser

Moderator
2. While refiners were making the EPA mandated sulfur modifications, diesel production was temporarily shut down resulting in shortages, which also pushed prices higher.

3. They're recouping the expenses for the sulfur mods too.

They had such short notice to make those mods, too. :rolleyes:
 

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