We all thought diesel would remain cheaper than gasoline, but we were
wrong. There goes one reason to own a diesel-powered car. But I
haven't spoken with an old diesel Benz owner who was too pissed. The
car's qualities still outweigh high diesel cost. Then I started
looking for a reason why diesel fuel is so damn expensive. The reason:
I work for a company that owns a few gas stations. I receive a fuel
quote from our fuel supplier every single morning on weekdays, Friday
quote carries over to Saturday and Sunday. Today's (Thursday 05/19/05)
quotes were as follows:
Regular - $1.57 cost
Premium - $1.69 cost
On Road - $1.56 cost diesel
Off Road - $1.54 cost diesel
=====================================Gas Price - $1.99 retail
Diesel Price - $2.25 retail Location 1
Diesel Price - $2.19 retail Location 2
As you can see, diesel is bought by the gas stations cheaper than
regular gasoline. It is then sold for about a quarter more per gallon
then regular gas. The owner told me they do that to offset their
losses on regular gas since the market is so highly competitive.
Bullshit. No one is offsetting anything - there's not enough volume in
diesel to help with competition in regular gasoline market. They gouge
the prices, and we take it.
I never paid that much attention to diesel prices, only noting that
they were generally lower. Now that I have an MB I naturally notice
them all the time. But in a short 200 mile trip in my home state, I
have seen prices run the gamut from more than premium gas, to less
I think I'm going to get a papier-mache tractor to put in my back
yard, and start buying it in bulk..
I don't know that I buy the economies of scale argument, especially
since it's certainly not reflected in the cost of the product in the
above example. All the stations here have just one pump devoted to
diesel, about 8 others pumping gas. The single diesel pump isn't
taking up very much space and it's hard to imagine that the diesel
can't support more than it's fair share of the volume, especially
considering many trucks that are filling up take many times what a car
You can say that again. I pulled into a Chevron station the other day to
fill up my 240D and the dollar value still on the pump was almost $500! This
was at the cheapest station within many miles and I'm sure some trucker was
glad he only needed about 210 gallons.
"Pump occupied" my ass, darling. Installing a diesel pump is a sunk
cost, that's why the "it cost to run the pump" argument doesn't work.
Also, it's commonly known that price increases happen overnight, but
price decreases happen very gradually - it's a small business owner
One of the factors keeping diesel prices high in comparison with
regular gas is cut-throat competition in regular caused by high
Any business owner will tell you that they will purposely keep diesel
prices higher because the margin is a bit better. That's why I'm
calling their bullshit and saying it shouldn't be as high. They buy it
for LESS than regular, it DOESN'T COST anything to keep the pump
running, and it SHOULD be cheaper than regular gas.
Just an opinion.
In Britain diesel has in recent been very approx same as standard unleaded
petrol, whereas in a number of west-European countries the diesel price is
significantly lower, all because of taxation policy.
However, the price difference is usually 'compensated for' in other taxes,
such as extra tax on diesel-engined cars.
For direct contact replace nospam with schmetterling
"Mia" < email@example.com> wrote in message
Compared to the USA, "significantly lower" still means a lot more. In
Holland the cheapest diesel at the moment is 92 eurocents per liter,
which is roughly 3,50 euro for a US gallon, or approx. 4,40 US dollars
for a gallon. Regular unleaded costs about 4,90 euro/US gallon or
approx. 6,20 US$/US gallon.
Car tax for diesel cars in Holland is higher. Tax for my 1980 W123 200D
is 996 euro per year (or 1255 US$). If it had a petrol/gasoline engine,
I would only pay 516 euro per year (or 650 US$). Fortunately I don't
have to pay car tax anymore, because my MB passed its 25th birthday and
then you get an exemption.
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