current diesel fuel pricing

[dryfly]

Locally, I'm seeing gasoline prices drop considerably, however diesel pricing doesn't seem to be going down as fast. Is the same thing happening in your area?

It seems the price differential between regular gasoline and diesel is usually about 50 - 75 cents. Now it is about $1.40. What's going on with this?

[PButler96]

Michelle.S wrote:
I think that's 3B, B as billion.

LOL......

[Michelle_S]

I think that's 3B, B as billion.

[PButler96]

afidel wrote:


As far as heating oil is concerned, in 2020 residential use was about 3B gallons, about 1/4th of what it was in the late 70s

What? 38 gallons?

We used to go through @ 500+ gallons every winter and that was on the Eastern shore of MD, where winters are typically really mild.

[Tvov]

Yep, in Connecticut the price of diesel has been well over $1 more than gasoline for awhile now.

I just posted in another thread talking about 1/2 ton diesels... no one I know is looking to buy a diesel now, the fuel is so expensive.

[afidel]

Huh, just checked gas buddy and the spread on diesel between stations is $1.50 vs the spread on regular gas at $0.50. At the station with the best price on diesel it's $4.49 vs $3.39 for regular.

As far as heating oil is concerned, in 2020 residential use was about 3B gallons, about 1/4th of what it was in the late 70s and a much smaller percentage of the total distillate useage, though it's still a concern in the NE and NY in particular as refineries have to tune for it during the leadup and during the winter months.

[valhalla360]

JaxDad wrote:

markchengr wrote:
A 42 gallon barrel of crude oil yields approx 20 gallons of gasoline and only about 10 gallons of diesel. In the past several decades, the demand for diesel has has grown more, relatively, than the demand for gasoline. It's a supply and demand thing.

That’s not quite accurate, a barrel of crude yields between 11 and 12 gallons of ULS diesel.

The other factor, albeit a small one, is that the Federal tax on diesel is 1/3rd higher on diesel than it is on gasoline.

There is also the seasonal demands which are opposite, people travel more in the summer and so use more gasoline, in the winter diesel is competing with consumption for heating as well as for motor fuel.

It's even more complicated.
- Different sources will produce different quantities. The oil extracted from the Canadian tar sands will not produce the same amounts as south Texas sweet crude. Different refineries are set up to handle different types of crude oil.
- There are different refining techniques that can result in different percentages. European has far more diesel personal vehicles and their refineries are set up to extract a larger percentage as diesel. In the US, diesel has historically been primarily for commercial, so the refineries are set up to get more gasoline.

Of course, the number of gallons out of a barrel is not something that is quick and easy to change. Over 20-30yrs, yes they can make modifications to follow demand but over a year or two...not so much.

PS: Heating fuel is far less of a market force today compared to 40-50yrs ago. Most furnaces have been replaced with propane or natural gas. Very few oil fired furnaces are left. Similarly, oil fired electric power plants are rare exceptions.

[rhagfo]

Thermoguy wrote:
Traveled to eastern WA this weekend - Diesel was $5.39 - Drove a couple miles into OR, $4.71. Filled up, now back on the west side, $5.59. Gas is about $1 cheaper than Diesel. What I see is that diesel moves up and down slower than gas. It should be cheaper than gas and was when gas prices started to go up, but then it went up higher. Slower to go back down. Hopefully gas prices stay down regardless of who's in the white house.

Yep, got to love fuel prices on the left coast!!
In the greater Beaverton area (Portland) regular is $4.45 and diesel is $5.79. Now about 18 months ago the price of regular and diesel were within cents of each other, and at times diesel was cheaper!

[dryfly]

valhalla360 wrote:
It's a market thing.

Diesel is primarily serving commercial operators. They have to buy X gallons per week regardless of the price. Efficiency is always important. Even with low fuel prices, fuel is still a major cost of business. The result is diesel prices tend to be inelastic. That means they tend to be slower to go up and down.

Gasoline is primarily used by private individuals. Particularly when fuel prices are low, they tend to be less focused on efficiency, so when prices rise, they have more ability to reduce consumption. It could be as simple as easing off the throttle. It could be taking the compact car instead of the big truck. It could be skipping an optional trip. With a major price spike like we just went thru, it's not hard for a typical family to cut 10-30% off their gasoline consumption. The result is gasoline prices tend to be more elastic and thus go up and down faster as they try to react to the changes in demand.

Thank you. That's a very good explanation of what I was asking in my OP. I really was not asking what the price is in a specific city or state, but why in general there is currently a large spread in gas vs. diesel prices.

In addition to the overall static consumption of diesel fuel for commercial shipping purposes, I would assume we are seeing a current trend of this going higher. My reason being we are seeing the supply chain open up after a year of issues, and then there seems to be less problem finding drivers for trucks. More products and more trucks on the road equals higher diesel consumption.

[Thermoguy]

Traveled to eastern WA this weekend - Diesel was $5.39 - Drove a couple miles into OR, $4.71. Filled up, now back on the west side, $5.59. Gas is about $1 cheaper than Diesel. What I see is that diesel moves up and down slower than gas. It should be cheaper than gas and was when gas prices started to go up, but then it went up higher. Slower to go back down. Hopefully gas prices stay down regardless of who's in the white house.

[ferndaleflyer]

I got diesel Sat in NC for $3.91. I am now in WV and it is $4.79. Leaving here for Cleveland will see how this goes up that way, oh, gas was & $2.99 in NC

[MitchF150]

It depends where you are getting your 'fuel' from... I've seen in WA state from 4.09 for reg and $5.09 for diesel to $4.99 for reg and 5.99 for diesel.

From the West side to the East side of the state this weekend from the top tiers to the local safeways and such..

Just depends on what fuel you want compared to price I guess...

Mitch

[JaxDad]

markchengr wrote:
A 42 gallon barrel of crude oil yields approx 20 gallons of gasoline and only about 10 gallons of diesel. In the past several decades, the demand for diesel has has grown more, relatively, than the demand for gasoline. It's a supply and demand thing.

That’s not quite accurate, a barrel of crude yields between 11 and 12 gallons of ULS diesel.

The other factor, albeit a small one, is that the Federal tax on diesel is 1/3rd higher on diesel than it is on gasoline.

There is also the seasonal demands which are opposite, people travel more in the summer and so use more gasoline, in the winter diesel is competing with consumption for heating as well as for motor fuel.

[spoon059]

Haven't much paid attention to gas prices. I have a job issued car and free gas for that. For diesel I've paid as high as $5.99/gallon earlier this spring. Its currently $4.53/gallon at the gas cash station near me. Gas is roughly $1, maybe $1.25 cheaper right now.

Thankfully I haven't had to fill up since we traveled home from Tennessee in early August and unfortunately I don't have another planned camping trip until February.

[markchengr]

A 42 gallon barrel of crude oil yields approx 20 gallons of gasoline and only about 10 gallons of diesel. In the past several decades, the demand for diesel has has grown more, relatively, than the demand for gasoline. It's a supply and demand thing.