# price of diesel fuel



## campfire (Sep 9, 2007)

Reading through the diesel trucks thread I found a lot of knowledgable and experienced responses. So do any of you have a good reliable explanation for the fluxuation and the disparity of diesel fuel compared to gas? If both are refined from curde oil why is there so much disparity and fluxuation?


----------



## threshershark (Sep 7, 2007)

I don't really have any complete explaination, but here are some thoughts:

1) Diesel in some ways can be considered a byproduct of gasoline production (although you could also consider gasoline to be a logical step in the refining of diesel). Because of this, historically, it has been cheaper.
2) While diesel in its basic form can be easier to refine from crude oil than gas, removing the sulfur isn't so simple. Low-sulfur requirements have added steps and expense to the production of diesel.
3) It's my understanding that a barrel of crude can yield as high as 50% gasoline via the refining process, but only about 22% diesel. A 42-gallon barrel produces 8-9 gallons of diesel.
4) Commercial trucking and high volume applications use diesel fuel, which imposes some high volume demand on a product with lower yield per barrel of crude. Diesel consumer trucks, once somewhat rare in the US, now are extremely popular. Over 80% of Dodge heavy duty trucks are sold with the Cummins, for example.

Basically I think demand has been on the constant increase, low-sulfur requirements have added cost to production, and oil supplies have been tighter causing the lower yield product of diesel to be more costly. I would also not be surprised at all if there's some gouging by the oil companies involved. All the "majors" are turning giant record profits, and commercial applications such as trucking tend to have deeper pockets.


----------



## threshershark (Sep 7, 2007)

*Price of TRUCKS*

I have a related question for those w/ diesel trucks:

Stepping up to the diesel engines has always been a somewhat pricey option, say $4,000 on average for a new truck. Given the better mileage and excellent towing performance, diesels traditionally have paid for themselves in the long haul.

Now that new emissions requirements have increased the cost of the engine to $7000+, has the price finally exceeded the benefit? I paid exactly $29K for my new 2003 Duramax, and doubt if I would be able to get out the door for less than $37K now.

How many think a diesel has enough value to offset the $7K pricetag?


----------



## sagebrush (Sep 8, 2007)

from someone that has owned an 1/2 for the most part. taking the step and up grading will benefit me in the long run. I will no longer be held back from the capabilities of the 1/2 ton. I do not like the price of diesel fuel, but what can one do? trade it in for gasser. 
I will keep the diesel and hope the mileage I get, will off set the price some.


----------

