Mercedes biodiesel / diesel fuel system schematic

Here in the Silicon Valley area it's now over *premium* gas, and has been for several weeks. The same thing happened when fuel prices went up last year.

Diesel in the Bay Area is now running at about $3.39 a gallon. That's the price at the cheapest gas station in my area, as a matter of fact (the Rotten Robbie station on Lafayette St. in Santa Clara, for the benefit of any locals in the readership).

Geoff

I've been told that it's household heating oil. But if so, it seems strange to classify it as "diesel," even if it's chemically similar, since that would imply that it's used in engines.

Somebody else in this thread said that #1 diesel is occasionally seen at gas stations in the western U.S., but I've never seen it on the West Coast; maybe it can be found in some of the inland western states. I don't know why a formulation with less cetane would be necessary, though.

In my experience diesel pumps are always labeled either "#2 diesel," or more commonly, just "diesel."

Geoff

In fact, I would suppose they are producing now for the heating oil "season", which I would also suppose should increase the supply and drive down the price? The only explanation I can think of other than gouging is taxes?

the recent spike in diesel relative to gas is a seasonal thing as refineries shift to making more diesel in anticipation of the heating season

California is it's own unique market that has little relationship to the rest of the US

taxes haven't changed the price rise is because not enough #2 oil is in storage for the upcoming season and speculators are buying futures in hopes of a cold winter straining what is in storage. Since home heating fuel and the diesel we use is essentially the same this game is forcing the prices up for us

Heating oil was the one I forgot. I remember reading about oil prices reacting to American winters. Apparently you guys use a lot of the stuff :(

Ximinez

Yes, but that's not new either, is it?

How much cheaper is diesel that 95-octane in your area (of the NL, for those who don't realise that's where you are)? (I can't remember if you told us already whether the tax concession on diesel has been reduced.)

DAS

For direct contact replace nospam with schmetterling

Diesel's about 30 eurocents cheaper per litre than 95. Around 1.05 per litre vs. 1.35. This is compensated by a much higher road tax on diesel cars. The diesel fuel itself is taxed less heavily than gasoline, hense the difference in price.

For this reason diesel is very popular with people who drive a lot. LPG carries an even higher road tax (as well as other disadvantages), but is a lot cheaper at the pump at about 50 cts/litre.

Heating oil is cheaper than diesel, but it's marked with a red dye and apparently the penalties if you get caught using that are draconian. I had my car checked for that once, in Belgium, about ten years ago.

Ximinez

That's true for gasoline, but diesel fuel is diesel fuel. There's no special California formulation for California.

Geoff

true, but diesel like gas is a product of distillation, and CA's refineries operate differently than anyone else's and the ratio of #2 to gasoline is skewed because of the different refining procedures.