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Asked: Jan 12, 2008 - 08:10 AM

Status: Closed

Why does diesel fuel cost more than regular when they have to refine regular from diesel?

Why does diesel fuel cost more than regular gas fuel. They have to refine regulas more times than regular. Diesel is the backbone of American comsumers due to the truck deliveries. If they want to do something about the economy reducing the cost of diesel will help and the higher prices are directly affecting consumer goods pricing.

In Fuel Type / Drivetrain > Diesel
4 answers - 355 days ago

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mr_shiftright

Date: Jan 12, 2008
Time: 11:19 AM

You'll get a gazillion opinions on this but I think it is a combination of a)it takes more energy to refine it than it does gasoline b)taxes on it might be higher and c) the supply and demand equation driven by the commercial uses of diesel.

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mr_shiftright

Date: Jan 12, 2008
Time: 11:19 AM

You'll get a gazillion opinions on this but I think it is a combination of a)it takes more energy to refine it than it does gasoline b)taxes on it might be higher and c) the supply and demand equation driven by the commercial uses of diesel.

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bepperb

Date: Jan 17, 2008
Time: 03:22 PM

It used to be easier to refine, but there is some cost to the switch to low sulfur diesel. It is also taxed at a higher rate than gasoline, and in the winter is basically the same thing as heating oil and therefore winter demand is higher.

Your economic analysis is reasonable, but trucking companies profit from using the roads, isn't it fair that they should have to pay a higher tax rate than I do to take my kids to school or buy them food? Do you really think they would pass these tax savings on to consumers in the short term, or would it take years for prices (and contracts) to reflect this lower cost?

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xcrossroadsx

Date: Aug 19, 2008
Time: 04:50 PM

From what I have read in several places (but have not confirmed) the majority of US diesel fuel is refined in Europe. Demand for diesel has grown very high in Europe. I have owned diesel vehicles since 1995 and this is the first year that diesel was more expensive than gas, other than wintertime.

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12v10

Date: Dec 04, 2008
Time: 11:01 PM

diesel is a bio product you get when you refine gas, so when u make gas u get a little diesel, problem is that diesel use is very high now,so the demand is higher than gas. Now u can,t get diesel whitout going through the same steps as making gas!!! So the higher cost of refining is passed on to the diesel market. The taxes at the pump are the same, however the truckers do pay a higher tax, but it's paid quarterly & yearly, accordding to the miles run in each state.

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