gmcjetpilot
Well Known Member
Why diesel cost same as Gas now & complaining
Diesel engine's for airplane's? This spark's people's imagination. I started looking at diesel cost. I am considering buying a diesel car more than an airplane diesel, simply because there are no airplane diesels for planes, widely available and proven as of yet (another debate).
However my question is: Why is diesel more than gas now? Why is premium car gas almost as much as aviation gas? Why is jet and avgas about the same now?
When I was a kid there was a big difference in diesel cost v. gas (and jet v avgas). Car gas was way more than diesel. Now diesel is more! Was there some artificial subsidy way back than, or is there now an artificial gouge now on diesel?
Gas avg USA as of today is $2.978, Diesel is $3.280. Humm why why why. It's true that diesel has more "energy", but it should be cheaper to produce? What is the deal? I have my suspicions, like oil companies making $40,000,000,000.00 profit.
May they started to charge on energy or density verses cost to produce (thus making more money). A gal of gas is about 6 lbs/gal, diesel about 7 lbs/gal. They might have figured they where giving energy away and should charge on energy, not cost to produce? I don't know.
ANY IDEAS? Inquiring minds want to know.
According to the energy industry the break-down cost for gas/diesel, for gas/diesel, is:
Tax 13%/14%,
distributing&marketing 11%/8%
Refinery 8%/15%
Crude 68%/62%
(total is 100%)
Diesel has +1% tax, -3% distribution&marketing, +7% refinery cost and -6% crude. Higher refinery cost may be artificially controlled, because they can choose to control production and lower supply v demand.
This is all well and good, but it does not explain the higher cost only the break-down. With crude oil cost going up ($100 barrel), you would think the diesel (and Jet A) would have an edge since crude cost is 6% less. It does not explain why diesel is more now, unless refinery cost have gone way up.
Jet fuel avg is a little lower than Avgas by 11 cents. Jet and Avgas are about the same $4.70 v $4.81. Jet fuel like diesel use to be much less than gas.
As far as premium car gas in planes, the difference is about $1.00/gal roughly to 100LL. It is still not enough to make me want to use it. I'll pay the $1.00/gal more. As avgas goes up so does premium car gas, and that $1.00 difference gets smaller anyway. There is no way around the pain of high gas prices.
Do gas companies artificially mess with cost of fuel at the pump, in some secret and capricious way?
You want to cry, auto gas was $1.29/gal in Jan 2000, diesel was $1.30/gal May 2002.
UPDATE: I found this article that kind-a explains it? LINK
Diesel engine's for airplane's? This spark's people's imagination. I started looking at diesel cost. I am considering buying a diesel car more than an airplane diesel, simply because there are no airplane diesels for planes, widely available and proven as of yet (another debate).
However my question is: Why is diesel more than gas now? Why is premium car gas almost as much as aviation gas? Why is jet and avgas about the same now?
When I was a kid there was a big difference in diesel cost v. gas (and jet v avgas). Car gas was way more than diesel. Now diesel is more! Was there some artificial subsidy way back than, or is there now an artificial gouge now on diesel?
Gas avg USA as of today is $2.978, Diesel is $3.280. Humm why why why. It's true that diesel has more "energy", but it should be cheaper to produce? What is the deal? I have my suspicions, like oil companies making $40,000,000,000.00 profit.
May they started to charge on energy or density verses cost to produce (thus making more money). A gal of gas is about 6 lbs/gal, diesel about 7 lbs/gal. They might have figured they where giving energy away and should charge on energy, not cost to produce? I don't know.
ANY IDEAS? Inquiring minds want to know.
According to the energy industry the break-down cost for gas/diesel, for gas/diesel, is:
Tax 13%/14%,
distributing&marketing 11%/8%
Refinery 8%/15%
Crude 68%/62%
(total is 100%)
Diesel has +1% tax, -3% distribution&marketing, +7% refinery cost and -6% crude. Higher refinery cost may be artificially controlled, because they can choose to control production and lower supply v demand.
This is all well and good, but it does not explain the higher cost only the break-down. With crude oil cost going up ($100 barrel), you would think the diesel (and Jet A) would have an edge since crude cost is 6% less. It does not explain why diesel is more now, unless refinery cost have gone way up.
Jet fuel avg is a little lower than Avgas by 11 cents. Jet and Avgas are about the same $4.70 v $4.81. Jet fuel like diesel use to be much less than gas.
As far as premium car gas in planes, the difference is about $1.00/gal roughly to 100LL. It is still not enough to make me want to use it. I'll pay the $1.00/gal more. As avgas goes up so does premium car gas, and that $1.00 difference gets smaller anyway. There is no way around the pain of high gas prices.
Do gas companies artificially mess with cost of fuel at the pump, in some secret and capricious way?
You want to cry, auto gas was $1.29/gal in Jan 2000, diesel was $1.30/gal May 2002.
UPDATE: I found this article that kind-a explains it? LINK
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