OT: Gasoline and Hurricanes/Storms.

[artsandletters]

And the price of diesel fuel

And why does diesel cost more when it's cheaper to refine?

 

[artsandletters]

Futures markets speculation and effects of refining capacity are some of the things that come right to mind.

That may have something to do with the pricing, but it shouldn't. I won't budge on this but I will pay the going rate.

 

[Nittany.Lion]

There are laws in many areas to prevent such price gouging. However, they never seem to be enforced. In Ohio, you are not allowed to change your price until after the tanker truck comes to the station. But I have seen the stations change prices 3 times in one day many times on days when they never took delivery of gas. The rules are always broken and never enforced. Gas Buddy has stated that Columbus has some of the most consistently volatile gas prices in the country and I have been witness to this over the last 18 years. The general rule of thumb is that the lowest prices are Tuesday and Wednesday and the highest prices are on the weekends, especially OSU game weekends.

I thought prices in St Louis were crazy volatile, the chart below show Columbus takes the prize

 

[uhlerlion]

Fewer drivers, cheap gas, abundant supply, refinery capacity was not maxed out as it is today.
Also likely that less of the nations refining capacity was in the gulf region back then.

Also was it not cheaper to produce "regular" (really leaded) versus regular "unleaded" I seem to recall unleaded only came onto the scene mid 8os ish which is the tail end of the OP's range

 

[mn78psu83]

That may have something to do with the pricing, but it shouldn't. I won't budge on this but I will pay the going rate.

It does actually, especially when traders zero in during volatile times.

 

[artsandletters]

It does actually, especially when traders zero in during volatile times.

The station paid for the gas in the underground tanks and priced it accordingly. The price of the next tanker of gas should determine the price of that gas. Any pricing otherwise is corrupt, the commodities market be damned.

 

[lein]

And why does diesel cost more when it's cheaper to refine?

Don't know, fed/state fuel taxes maybe?

 

[Tom McAndrew]

And why does diesel cost more when it's cheaper to refine?

that's like looking at a minor part of a complicated process, and drawing a sweeping conclusion.

I'm not going to go into all of the aspects, but here are a two key things to keep in mind:

- In a typical barrel of oil, a refinery can produce 18 - 21 gallons of gasoline, 10 - 12 gallons of diesel, plus some other refined products.

- the federal gasoline tax is 18.4 cents/gallon for gasoline, and 24.4 cents/gallon for diesel

 

[SmithtonLion]

Something else of note...there is a magical number out there where it becomes more economical for companies to ramp up fracking again, so if you are in the Marcellus Shale area, beware. It's coming.

Beware? You mean "get ready to celebrate jobs coming back".

 

[SmithtonLion]

How true is initial statement? That's the first thing people ought to ask themselves.

 

[artsandletters]

that's like looking at a minor part of a complicated process, and drawing a sweeping conclusion.

I'm not going to go into all of the aspects, but here are a two key things to keep in mind:

- In a typical barrel of oil, a refinery can produce 18 - 21 gallons of gasoline, 10 - 12 gallons of diesel, plus some other refined products.

- the federal gasoline tax is 18.4 cents/gallon for gasoline, and 24.4 cents/gallon for diesel

Or you could be cynical like me and draw the conclusion that every tracker and trailer, in order to remain in business delivering goods across the US, have to have diesel so why not tax diesel at a higher rate. Without diesel the entire industry is at a standstill (not to mention ships).

 

[psuro]

Or you could be cynical like me and draw the conclusion that every tracker and trailer, in order to remain in business delivering goods across the US, have to have diesel so why not tax diesel at a higher rate. Without diesel the entire industry is at a standstill (not to mention ships).

Generally speaking, diesel is taxed at a higher rate than gasoline. No. 2 Home Heating Oil and diesel are the same thing (in terms of refinement and chemical composition), however they are taxed at different rates.

I don't know if big ships use diesel engines - they might - but I was under the impression that the large cargo ships use Bunker C oil.

 

[artsandletters]

Generally speaking, diesel is taxed at a higher rate than gasoline. No. 2 Home Heating Oil and diesel are the same thing (in terms of refinement and chemical composition), however they are taxed at different rates.

I don't know if big ships use diesel engines - they might - but I was under the impression that the large cargo ships use Bunker C oil.

I'm not sure about ships either but pleasure boats do. You'll find Detroit Diesel near most busy marinas.

 

[psuro]

I'm not sure about ships either but pleasure boats do. You'll find Detroit Diesel near most busy marinas.

Yes, pleasure craft do, but they are not carrying tons of goods to be sold to the retail purchasers.

 

[artsandletters]

Yes, pleasure craft do, but they are not carrying tons of goods to be sold to the retail purchasers.

But the Peterbilts and Kenworths are.

 

[psuro]

But the Peterbilts and Kenworths are.

I know.

 

[bplionfan]

 

[rmem]

That tells you all you need to know. Conserve gas and wait it out for another week. Bastards.