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  #61  
Old 12-27-2013, 03:55 PM
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Diesel price conspiracy

http://www.theglobeandmail.com/globe...article545429/


THE GREEN HIGHWAY
The great diesel price 'conspiracy'
MICHAEL VAUGHAN
Special to The Globe and Mail
Published Tuesday, Feb. 07 2012, 2:35 PM EST
Last updated Thursday, Sep. 06 2012, 11:54 AM EDT

‘Can someone tell why I have to pay 12 to 15 cents more for diesel than for regular gasoline. When I bought my 2009 Jetta wagon, I was paying 3 or 4 cents less, a situation that changed about six months ago. It is my understanding that diesel is cheaper for refiners to make. Is this a conspiracy by Big Oil to dissuade people from buying fuel efficient diesel engines?” a reader from Kingston, Ont.,

I love a good conspiracy, especially about Big Oil, but I can’t find one here.

First of all, I also drive a diesel Volkswagen and I filled up recently at my regular discount gas station – I paid $121.9/litre for diesel while regular gas was selling for $122.9/litre. I have seen recent price spreads between gas and diesel, but I can rarely remember seeing a 12-to-15-cent difference. Our friend in Kingston needs to shop around for a better price.

But I have sympathy for his situation because when I bought my diesel the price of its fuel was always well below the price of gas. That was in 2000 and since then demand for diesel has increased steadily.

Take a look at all the transport trucks on the road with their 240-gallon tanks and add in the growing number of diesel-powered cars and SUVs. In Europe, the majority of new cars are diesels. Then add the growth in diesel in places like China and India and you see how stronger demand pushes higher prices. North American refineries are shipping diesel fuel to Europe because of the higher prices they can get.

Back a few years ago, the price of diesel went up in the winter and down in the summer. You only get so much fuel from a barrel of oil no matter what you turn it into. An oil refinery starts with raw crude and cracks it into various kinds of fuels and chemicals. Diesel and heating oil are about the same and demand for heating in cold winters pushed the price of diesel up. Now there’s strong diesel demand year round.

Our reader believes that “diesel is cheaper for refiners to make.” That may have been the case in the past but no longer. Refining costs for diesel are now more expensive than gas or heating oil because of the additional processing it goes through to remove high amounts of sulphur.

Back when I stated driving a diesel the quality of the fuel was pretty bad. In 2006, new diesel fuel sulphur content regulations went into effect requiring that the sulphur content of diesel be reduced from 500 parts per million to no more than 15 parts per million for 80 per cent of all diesel sold for road use. In December, 2010, that standard was made to apply to 100 per cent of on-highway diesel fuel. New sulphur standards for off-highway diesel fuel (construction machinery, generators, etc.) have now also been phased in.

Where you do see diesel priced consistently above gasoline is in the United States. Yes, it’s still cheaper to fill up in the United States but diesel is taxed 6 cents a gallon more than gasoline south of the border.

That may be damping diesel engine demand in the United States but not much as diesel car sales rose 27 per cent last year in the U.S. while hybrid sales slipped. And there are a lot more diesels coming, including a diesel-powered version of the Chevy Cruze.

I’d be happy to expose the “conspiracy” if I could find one. In the meantime, I suggest that our reader shop around for a better diesel fuel price and enjoy the up-to-30-per-cent fuel economy improvement over burning gas.
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Old 12-27-2013, 04:28 PM
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Na a conspiracy makes me feel better
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Old 12-27-2013, 04:33 PM
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Sundancefisher Sundancefisher is offline
 
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Quote:
Originally Posted by Taco View Post
Na a conspiracy makes me feel better
Lol


For many it makes them feel better.
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Old 12-27-2013, 04:49 PM
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People don't like it when I tell them then fuel will likely never get much cheaper than it is right now today. It drops a nickel and you'd think they won the lottery
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  #65  
Old 12-27-2013, 04:58 PM
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People don't like it when I tell them then fuel will likely never get much cheaper than it is right now today. It drops a nickel and you'd think they won the lottery
Ya. The industry is so competitive..,every ounce of savings is built into the price.

Price will never get cheaper.
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  #66  
Old 12-27-2013, 11:01 PM
Peter Gill Peter Gill is offline
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There are some fundamental errors in that article.
Crude oil is not the same the world over, neither is the product therefrom. For example, 95% of a barrel of Orinoco Heavy becomes heavy products like kerosene and diesel, very little is able to be refined to gasoline. Alberta oil sands has a similar trend, more of the fraction is diesel compared to say Brent or Saudi light.

America was slow in small-car diesel development largely due to California, the biggest market for such, prohibiting diesels in anything smaller than 1-ton pickups. It took Mercedes with the ecotec motor to convince them (after about 30 years) otherwise.

BTW. just filled up tonight east of Edmonton at 122.9, Gas Plus.
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  #67  
Old 02-15-2018, 04:12 AM
KinAlberta KinAlberta is offline
 
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Interesting that diesel is now above these old 2013 prices (see previous post).

For those travelling around Alberta are there any good apps for finding and comparing diesel prices?
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  #68  
Old 02-15-2018, 05:06 AM
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Originally Posted by KinAlberta View Post
Interesting that diesel is now above these old 2013 prices (see previous post).

For those travelling around Alberta are there any good apps for finding and comparing diesel prices?
Gasbuddy.com
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  #69  
Old 02-15-2018, 10:42 AM
Drewski Canuck Drewski Canuck is offline
 
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Default I am SOOO disappointed in all of YOU!!!!

How many people posted a reply about a "Conspiracy" and did not mention ALIENS!!!!

Really?

I was just listening to "Stewart" by the Dead Milkmen, and it hit me, Its the Aliens!!!

And of course the construction of Alien landing strips outside Cities with large underground "alternative lifestyle" populations.

(LISTEN TO THE SONG AND TELL ME YOU DID NOT LAUGH!)

Anyway, If the Canadian Dollar ever recovers back to anything CLOSE to the US Dollar, so that the Canadian Refineries can factor in the exchange rate for Crude priced in US Dollars, that would help bring the price of all Fuel down.

Or the Canadian Oil Companies may take the view that the Consumer accepts a higher price and the Refiners get to take a bigger profit.

You see, demand, no matter what the season, makes little difference if the Exchange rate for the Commodity priced in US Dollars is not understood.

The bigger issue is that Governments who are BROKE and need to raise some Cash without increasing Vote Unfriendly Income Tax, just turn to consumption tax. They may flower it up with some Carbon Tax levy shell game, but it is a huge part of our fuel prices.

Take away the taxes, and adjust for Currency exchange rate, and you will see what is really going on here.

However, there is still huge profit in Diesel. One of the big operators in the Oil Sands makes their own diesel on site. It costs them feedstock and about 10 cents operating input, per litre. Given the stomped down value of Oil Sands Crude, you see what a profit it really is to the Refiners.

Drewski
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