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WHY is diesel higher than gas it was always 50 cents to more cheaper and takes less refinery?
Wiki User
∙ 12y ago
My belief of why diesel fuel is more expensive than gasoline is for several reasons. Diesel is certainly a more cheaper fractionation than gasoline when making petroleum fuels. The extra cost the past years is due to demand.
The demand for diesel fuel over gasoline has radically changed in the past few years due to both the Chinese and the India influences. Their manufacture of automobiles has leaned toward the diesel engine rather than the gas engine.
If you have a great demand for diesel fuel for use in their exploding economy and use of cars in both their countries - what does that give you? Tremendous buying of diesel fuels for these new cars and trucks & tractors. Hey! these countries are trading in their bicycles and getting little automobiles.
If the available fuel supply is not great enough to supply their demands, then they will be willing to pay more for the fuel. This demand drives up the costs of diesel to our country because these two countries are willing to pay more for it.
Does this make sense? Our farmers in the United States are really taking the blunt end of this equasion. Drives up the price of food we eat and everything else.
Our glutinous oil companies in the USA are having a field day unloading our money. When everyone ran out of money paying $4 a gallon, the demand went down. Guess what, the oil companies reduced the price of fuels immediately.
This new economic stimulus money the government sent out to all the people is quicky being sucked up by these oil companies. They are rubbing their little hands together and licking their chops. Likewise, they still set on the patents they bought up for carburators that give 50 miles to the gallon (developed in the early 1950's) while we keep paying the price at the pump.
Well, the answer is supply and demand and who is willing to pay the best price for the fuel. We here in the USA are trapped in the middle.
Wiki User
∙ 12y ago
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Why diesel cheaper than petrol?
In the United States diesel is not cheaper than petrol or gasoline, it is higher.
Why is diesl fuel so muck higher then gasoline?
Diesel fuel is usually expensive than gasoline because, diesel undergoes many expensive processes in the refinery than gasoline.
How can oil companies deal with the relative supply and demand for petrol and diesel fractions?
The supply and demand for diesel and gasoline (petrol) creates problems for refineries because sometimes the vehicle fleet demand does not match the product distribution produced by the refinery. If diesel demand is much higher than gasoline demand, but gasoline and diesel are produced in relatively equal amounts, then the gasoline will be oversupplied to the market. A refinery can only affect its product distribution slightly and each refinery is built to process a particular type of crude oil. Switching crude oils in a refinery requires complex analysis of metallurgy, capacity limitations, and profitability.
Is petrol more expensive than diesel?
The price of fuels is highly dependent on taxes, which are controlled by politics. And politics change. In Europe, diesel is usually a little cheaper. In the United States diesel is usually a little bit higher.
Is owning a dessel cheaper than gas car?
Maybe Diesel cars tend to be more expensive to buy, get better fuel economy and have a higher resale value. But these three things ma6y not make it cheaper to own
Which is more expensive a petrol car or a diesel car?
Diesel cars are less expensive but maintenence costs are higher than most petrol vehicles. So theres somewhat of a balance since gas powered cars are cheaper to maintain than a diesel... odd huh?
Diesel or petrol has a higher density?
diesel
Why Compressed natural gas is preferred over diesel vehicles in Indian cities?
It may be due to the pollution level ie.,the poisonous substance emitted from diesel is more compared to CNG. The cost of CNG is less when compared to diesel.
What is the adventages and disadvantages of petrol engion?
first of all its engine. ADVANTAGES - petrol is cheaper than diesel so cheaper to run. petrol cars generally cost less than diesel (a few 1000). petrol engines are usually faster than diesel off the line and have a higher top speed than a diesel car with the same sized engine. DISADVANTAGES - petrol is less economical than diesel and also diesel cars are much better for over taking than petrol as it has more torque (pulling power)
Why petrol cost is high and diesel cost is low?
That is not necessarily the case nowadays. Diesel fuel was much cheaper because there were far fewer cars with diesel engines. Since many more cars have diesel engines now the various governments increased the tax on diesel fuel to increase the revenue it receives. As did the fuel companies to to a far lesser extent. Diesel fuel is almost always higher than gasoline. Reason being is the EPA regulations a few years back regulated that diesel be made much cleaner that it was in the past. It costs more to refine this clean diesel. Have you noticed that you do not see black smoke bellowing from diesel trucks anymore.
What is the advantage of diesel generators over regular gas?
Diesel generators are more energy efficient, they are more durable and require less maintenance, have a longer life span, and while the cost for diesel is generally higher than gas it costs less to operate a diesel generator because of the fuel efficiency. Just like diesel cars versus gas cars, diesel will last longer. Diesel fuel is a cheaper longer lasting alternative to regualr unleaded gasoline.
Why is gas higher than diesel?
In most areas of the country Regular is not higher than Diesel, it is just the opposite.
