On Jan 23, 12:42*pm, "Larry L" wrote:
any truth to the idea that diesel vs gas prices might reverse themselves (
like they used to be )
Hopefully! (diesel F250 and diesel VW Jetta). If you're getting a
truck bigger than a 1/4 ton, or will do significant towing, I can't
imagine going with gas. Even with diesel at 30% more, you're still
probably breaking even in cost, and pumping less CO2 out (particulate
matter is something else). And if you'll be doing any significant
towing, diesel is a hands-down winner.
From my understanding, speaking strictly chemically, diesel ought to
be cheaper than gas since it is a "heavier" product, and thus easier
to produce from crude.
Fed taxes are 6 cents higher on diesel, and some state taxes on diesel
are higher (in my state, 4 cents higher, see
http://tonto.eia.doe.gov/oog/info/wo...sel_taxes.html)
But refining capacity here seems to be the biggest factor. I've also
heard that heating oil competes with diesel for refining capacity, so
winter usually sees a spike in diesel prices. Also the switch to low-
sulfur diesel.
Google "why does diesel cost more than gas" and you'll get lots of
reading.
Jon.