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How can oil companies deal with the relative supply and demand for petrol and diesel fractions?
Wiki User
∙ 11y ago
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.
Wiki User
∙ 11y ago
Wiki User
∙ 11y agoThe 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.
Wiki User
∙ 11y agoThe 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. *copyright intended*
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Think of a product or service you use where PRICES have recently changed Try to explain price changes we observe using demandsupply mechanism?
Supply and demand. Diesel fuel is a good example. Once apon a time diesel fuel was cheaper than gasoline. Then people decided to drive cars and pickup trucks that were powered by this less expensive fuel. The demand went up and the price went up with it. When demand is high, prices will also go high. When demand is low, prices will drop.
Why are the prices of petrol and diesel going up?
demand of petrol are going up year by year and petrol is nonrenewable source of energy
What is distllation?
Distillation is the separation of different fractions of a component. This is usually done by heating the component and removing the fractions based upon their boiling points. An example of this could be distillation (or fractionation) of crude oil into different fractions such as heating oil, diesel, jet fuel, naphtha (a component of gasoline), or asphalt. All of these components have specific boiling points and therefore their separation from the crude oil can be closely controlled.
What factors are causing the decrease in the supply of used cars?
(i) As cars have very elastic demand, this means that if price falls then automatically demand for cars will rise. And, if prise rises, demand for cars will fall. (ii) If income rises, then demand for the product will rise as consumers' purchasing power will increase. (iii) It also depends on fashion altogether with the taste of the product. Fashion will influence demand of cars. (brands, etc) (iv) Government policies affect demand for cars, taxes and subsidies will either increase/decrease demand. (v) Hire purchase facilities will increase demand for cars as it will facilitate customers when paying for the good. I would add one more very crucial factor that influences the demand for cars is the current price of petrol/diesel and the respective mileage offered by the model.
Diesel prices in 1991?
How much was diesel at the pump in 1991
Why does diesel cost more than gas?
It's a supply and demand issue. Demand for gasoline is much greater than that for Diesel. Therefore, the supply of Diesel is less which drives up the price.
What happens to the supply and demand of diesel in the winter?
jack
Why is diesel more expensive than unleaded gasoline in the US?
diesel is now more expensive than unleaded as the oild comanies are ripping us off diesel is a by-product of refining gasoline now with the demand for disel with more smaller vehicles having diesel engines the oil companies are just cashing in and making the big bucks at the common mans expense.
Does any specific company specialize in diesel tuning?
There are several companies that specialize in diesel tuning. Some of these companies include Torqtec, Fine Tuning Performance, and Diesel Tuning Box.
How can oil company solve the problem of the demand of diesel and petrol?
Produce more petrol than diesel. :P
What companies offer Xtreme Diesel?
"Xtreme Diesel is a company in itself. Dodge, Chevy, Ford, and GMC are some of the companies that offer this service. Cummins diesel also offers the same service."
Why does diesel cost 15p per liter more than unleaded petrol?
I think the oil companies are having us consumers over a barrel. Since the duty on fuel (Unleaded and Diesel) are the same, the difference is made up through the Oil companies and retailers. The media is saying that it's to do with supply and demand, well I think that is bull. Becuase there has be a shift from petrol to diesel cars the oil companies can see that us consumers will be visiting the petrol forecourts less often because a diesel car delivers more MPG than a petrol car. So in order to make up for the loss they hike up the diesel prices to make up the potential loss. Diesel is cheaper to refine that unleaded too.
Does shell put ethanol in diesel fuel?
No. That's why diesel fuel now costs more than gasoline. No, but in some areas (central Illinois for example) diesel contains a mixture of diesel and soybean based biodiesel there is no ethanol in diesel and that has nothing at all to do with the price of diesel the price of diesel is straight out supply and demand ,more diesel vehicles on the road so put the price up; the only bio diesel fuel is private enterprise. most biodiesel is made by private individuals and companies that use old cooking oils ,refine it and add it to the diesel it costs about 5000 thousand dollars to set this up and anyone can do it if they got access to old cooking oils
How is crude oil used?
It is refined into various fractions, including gasoline, diesel, kerosene, heavy fuel oil
What automotive companies manufacturer have a reliable diesel truck for sale for a small business?
There are several automotive companies which offers reliable diesel trucks for sale for a small business. I have discovered at least two popular companies which are the Ford Company and the GMC Company.
How many companies provide petrol and diesel to the petrol pumps?
7
What is a good brand to buy diesel trucks from?
Diesel trucks are sold from numerous companies, but the best company that you can purchase a diesel truck from would probably have to be Ford, due to their price.
