Diesel More Expensive Than Gas

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 than regular.

I think I'm going to get a papier-mache tractor to put in my back yard, and start buying it in bulk..

Oh, please, the economic metric for diesel vs. gasoline isn't dollars per gallon, but miles per dollar, where diesel still wins hands-down.

Exactly, this is called the economies of scale. They need to have a pump occupied pumping this diesel, even though as you state above they sell a lot less of it.

This is not "gouging". Marty

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 would.

"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 thing.

One of the factors keeping diesel prices high in comparison with regular gas is cut-throat competition in regular caused by high inelastic demand.

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.

Mia J

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.

DAS

For direct contact replace nospam with schmetterling

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.

I'd fill my 1,000-gallon tank if I could buy diesel at your quoted price. Where are you located?

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.