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Forget gasoline, diesel topped $4 a month ago

Marketwatch -- High diesel prices are “even worse for an economic recovery than high gasoline prices,” said Denton Cinquegrana, senior markets editor at the Oil Price Information Service (OPIS). “Most Americans pay attention to the price of gasoline, but we totally neglect the impact high diesel prices have on goods and services.”

“Anything from milk and eggs at the grocery store, to beer at the liquor store, and the newest PlayStation games at Best Buy” all get to their destination somehow — and that somehow is usually by truck, said Cinquegrana.

Consumers are also “less interested in diesel because they don’t buy it every week and the cost increases are indirect,” he said, but diesel costs are “passed through in the goods we purchase.”

An estimated 94% of all freight in the U.S. relies on diesel,

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Submitted Apr 07, 2012 By: bar1035

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eswi Champion Author Madison Posts:2,540 Points:682,405 Joined:Mar 2009	Message Posted: Apr 7, 2012 9:04:28 PM Ignore eswi Report Abuse OK
luwachris Champion Author Los Angeles Posts:1,082 Points:224,370 Joined:Jul 2011	Message Posted: Apr 7, 2012 9:01:34 PM Ignore luwachris Report Abuse Don't need diesel.
SpankyMI Champion Author Kalamazoo Posts:2,703 Points:758,305 Joined:Jan 2011	Message Posted: Apr 7, 2012 8:58:40 PM Ignore SpankyMI Report Abuse It use to be cheaper to produce diesel, what happened?
TekWare Champion Author Toronto Posts:3,156 Points:671,925 Joined:May 2011	Message Posted: Apr 7, 2012 8:57:15 PM Ignore TekWare Report Abuse The quicker we get off of oil, the better.
DarthDadJr Champion Author Virginia Posts:7,307 Points:1,520,445 Joined:Jul 2008	Message Posted: Apr 7, 2012 8:52:11 PM Ignore DarthDadJr Report Abuse True, all transport of goods uses diesel...
ricebike Champion Author New Jersey Posts:10,026 Points:1,854,745 Joined:Oct 2005	Message Posted: Apr 7, 2012 8:49:58 PM Ignore ricebike Report Abuse unless i can get a diesel vehicle that has the conversion to run waste veggie oil, i won't be getting a diesel powered vehicle
kgbellman Champion Author Ann Arbor Posts:2,703 Points:730,640 Joined:Mar 2011	Message Posted: Apr 7, 2012 8:49:00 PM Ignore kgbellman Report Abuse Makes me feel happy I didn't jump on the diesel bandwagon
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:43:42 PM Ignore Aviator_Rob Report Abuse GrumpyCat is absolutely right, especially about the cost of refining more diesel. It's very expensive to try to squeeze more than 40% of diesel out of a barrel of crude. To refine more diesel requires cooking the gasoline at high temperature and pressure in order to convert the gas into diesel. The only thing harder to do is trying to turn lead into gold. And speaking of lead, there was a time when automakers needed lead in gasoline to keep engine knock down. The EPA finally banned it in the late 70s. I think we can agree that unleaded gasoline is a good thing and we wouldn't want to go back to leaded gas. Ultra Low Sulphur Diesel is the same thing. Think of it like unleaded gas. Sulpher in gas has some benfits in regards to engine wear but the downsides are far worse. I'm happy that we have ULSD now. Nobody wants to breathe in sulphur dioxide. It's nasty stuff.
stopforgas All-Star Author Mississippi Posts:996 Points:480,955 Joined:Jun 2011	Message Posted: Apr 7, 2012 8:42:05 PM Ignore stopforgas Report Abuse I wonder when the methane burning engines will get here? Seems like we should have a lot of that.. :)
gamalerin Champion Author Tampa Posts:4,747 Points:992,535 Joined:Jul 2010	Message Posted: Apr 7, 2012 8:38:38 PM Ignore gamalerin Report Abuse they play the nice game.
NorthglennBill Champion Author Denver Posts:7,417 Points:1,471,620 Joined:Oct 2008	Message Posted: Apr 7, 2012 8:34:25 PM Ignore NorthglennBill Report Abuse And the politicians say this isn't going to hurt the economy? Who are they trying to kid?
skyking19 Champion Author Little Rock Posts:1,996 Points:1,697,965 Joined:Jan 2007	Message Posted: Apr 7, 2012 8:33:58 PM Ignore skyking19 Report Abuse Ok
bkplenge Champion Author Tallahassee Posts:1,618 Points:121,725 Joined:Sep 2005	Message Posted: Apr 7, 2012 8:33:54 PM Ignore bkplenge Report Abuse So why are they still allowed to run up the prices for no reason?
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:33:40 PM Ignore Aviator_Rob Report Abuse I hate to break it to you, NHLiveFree but it's worse than you think. Not because of the speculators but because of the fact that much of the diesel produced in this country is exported to Europe where the demand for diesel is much higher. Since Europe has a much higher tax on gasoline than on diesel, all the European automakers market diesel engines in almost all their car lines. This means that diesel is in much higher demand than gasoline. Oil companies have actually been swapping American diesel for European gasoline for years now, in order to maximize their profits.
mstearno Champion Author Dayton Posts:8,061 Points:1,730,260 Joined:Jan 2008	Message Posted: Apr 7, 2012 8:31:03 PM Ignore mstearno Report Abuse who cares
GrumpyCat Champion Author Alabama Posts:2,606 Points:788,810 Joined:Jun 2009	Message Posted: Apr 7, 2012 8:28:29 PM Ignore GrumpyCat Report Abuse Its the EPA's fault for forcing ULSD down our throats. Initially when gasoline was $2.00/gallon, ULSD was $3.00 due to the added processing required to extract sulphur. ULSD has caused other problems. Extracting sulphur (which ideally diesel would not have) also removes beneficial properties such as lubricity. ULSD is not as "oily" as the previous LSD. ULSD is much more of a problem for older diesels than E10 is for automobiles, boats, or small engines. Then there is another problem in that a barrel of oil only easily yields a certain ratio of gasoline to diesel. Can make more diesel and less gasoline, or more gasoline and less diesel, but at additional cost. With gradually lessening consumer gasoline consumption commercial diesel consumption is not lessening. So now diesel costs even more because they are refining more diesel from a barrel than that which comes easily.
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:28:28 PM Ignore Aviator_Rob Report Abuse Actually Deg, the government collects the same amount of money in tax whether the price is $2.00/gal or $4.00/gal. The gas tax is per gallon, not a percentage like sales tax. If it was sales tax, then the more you spend, the higher the tax.
mitchell6597 Champion Author New Hampshire Posts:3,462 Points:728,360 Joined:Apr 2010	Message Posted: Apr 7, 2012 8:26:39 PM Ignore mitchell6597 Report Abuse That's true.
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:26:03 PM Ignore Aviator_Rob Report Abuse jessek asked about compressed natural gas. It's great stuff. It can be burned in a gasoline engine and the emissions are much lower than for gasoline. In fact it's so clean that when a CNG car gets emission tested, a lot of times the technician will think the test rig is broken because the pollution readings barely register. CNG in New York is currently selling for $2.79/gal of gas equivalent, so it's way cheaper than gasoline. Now for the downside. CNG cars are generally more expensive, about the same as a hybrid vehicle but with the mpg of a regular gasoline engine. The CNG tank takes up a lot of room in the trunk. They just can't get the tank size to be the same as a gas tank. The range of the car is about half that of a regular gasoline engine car, so even though you won't pay very much for a tank of CNG, you'll have to fill up more often. There aren't a lot of places to fill up. It's sorta the same problem as for electric cars. No place to plug in when away from home and for CNG it's worse because not everyone can get a natural gas line hooked up in their garage to refuel the car. I've read that the CNG has to be free from moisture and contaminants or else it'll damage the engine. The natural gas that a kitchen stove burns doesn't worry about moisture and contaminants. It just has to heat up your food. Long story short, CNG looks very promising but it's not quite there for average drivers yet. That's why most CNG vehicles are part of fleets like taxis and municipal vehicles.
NHLiveFree Champion Author New Hampshire Posts:11,083 Points:1,621,355 Joined:Jun 2008	Message Posted: Apr 7, 2012 8:25:04 PM Ignore NHLiveFree Report Abuse Time for the "trucking industry" to shift off of diesel which the Big Oil industry has priced out of competition. Diesel is a distillate which is only a byproduct of the refining process for gasoline. It should remain cheaper than regular gasoline as it was up to the 1990s. Industry manipulation and speculators have been creating this outlandish pricing.
w9med Champion Author Gary Posts:1,128 Points:327,845 Joined:Aug 2011	Message Posted: Apr 7, 2012 8:24:54 PM Ignore w9med Report Abuse My car don't run on disel
jdc17327 Champion Author Pennsylvania Posts:2,555 Points:197,690 Joined:May 2009	Message Posted: Apr 7, 2012 8:24:27 PM Ignore jdc17327 Report Abuse crap
DEG Champion Author Las Vegas Posts:17,615 Points:3,493,730 Joined:Jul 2003	Message Posted: Apr 7, 2012 8:23:00 PM Ignore DEG Report Abuse The government (especially Obama) wants higher fossil fuel costs. The higher the fuel prices the more money that the government rakes in. The government is worse than speculators and almost as bad as OPEC.
ramman2012 Champion Author Edmonton Posts:2,318 Points:495,460 Joined:May 2011	Message Posted: Apr 7, 2012 8:22:38 PM Ignore ramman2012 Report Abuse Right.
jdc17327 Champion Author Pennsylvania Posts:2,555 Points:197,690 Joined:May 2009	Message Posted: Apr 7, 2012 8:21:47 PM Ignore jdc17327 Report Abuse crappy!
Busymomma56 Sophomore Author Utah Posts:224 Points:52,120 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:19:32 PM Ignore Busymomma56 Report Abuse We are being attacked from all sides. Give us a break!
LCSTEELERBOB Champion Author Gary Posts:2,961 Points:720,130 Joined:Oct 2008	Message Posted: Apr 7, 2012 8:17:46 PM Ignore LCSTEELERBOB Report Abuse not good for food prices
wonderlander Veteran Author Illinois Posts:393 Points:49,600 Joined:Aug 2011	Message Posted: Apr 7, 2012 8:16:31 PM Ignore wonderlander Report Abuse this isnt shocking news
Mermaan Champion Author Boston Posts:1,572 Points:421,235 Joined:Apr 2011	Message Posted: Apr 7, 2012 8:15:59 PM Ignore Mermaan Report Abuse Yep.
nimpy Champion Author Indianapolis Posts:8,130 Points:1,700,130 Joined:Oct 2007	Message Posted: Apr 7, 2012 8:15:27 PM Ignore nimpy Report Abuse and now all of our goods that are hauled by truck will cost more
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:13:46 PM Ignore Aviator_Rob Report Abuse bl626, if there were two prices for diesel, depending on if it's used for freight, non-freight diesel drivers would pay more. The problem with diesel is that although it's great for trucks that need lots of torque to haul freight, you can't refine as much diesel out of a barrel of oil as you can gasoline. This means there's always less diesel available on the market than oil unless you get diesel from somewhere else and that somewhere else will then have less diesel.
MahopacJack Champion Author New York Posts:8,011 Points:1,582,845 Joined:Feb 2008	Message Posted: Apr 7, 2012 8:13:18 PM Ignore MahopacJack Report Abuse Diesel hasn't been below $4.00 for over a year here in New York. Currently $4.49 -$4.59.
PithyOpiner Champion Author Stockton Posts:16,200 Points:1,596,570 Joined:Jun 2008	Message Posted: Apr 7, 2012 8:13:06 PM Ignore PithyOpiner Report Abuse No more heartburn and bile for me.
Senrac Champion Author Lincoln Posts:1,594 Points:305,635 Joined:Mar 2010	Message Posted: Apr 7, 2012 8:13:00 PM Ignore Senrac Report Abuse never should have gotten higher then gas
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:08:07 PM Ignore Aviator_Rob Report Abuse I gotta ask, altima2008. What will you do IF Obama gets re-elected? Can you handle four more years of heartburn and bile?
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Apr 7, 2012 8:07:52 PM Ignore jessek Report Abuse Now lets throw CNG into the equation.
snarkysmarko Champion Author Baltimore Posts:3,072 Points:686,605 Joined:Nov 2010	Message Posted: Apr 7, 2012 8:07:01 PM Ignore snarkysmarko Report Abuse either way, you get screwed over with high prices
bl626 All-Star Author Toledo Posts:824 Points:242,355 Joined:Feb 2011	Message Posted: Apr 7, 2012 8:05:52 PM Ignore bl626 Report Abuse I would use diesel if it was cheaper than gas, there should be two prices for diesel: freight user and individual users. Diesel is a lot more fuel efficient than gas.
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:05:32 PM Ignore Aviator_Rob Report Abuse chris46 asked, "is a diesel engine worth the cost difference over a gasoline engine ? Has anybody figured this out?" The price premium for a diesel engine is about the same as a hybrid, around $2,000-3,000 more than a regular gasoline engine. Diesels get better mileage on the highway while hybrids do much better in the city. The difference comes in the cost of fuel. Diesel right now is more expensive than premium gas while hybrids for the most part run on the cheapest 87 octane gas they can find. In my opinion, the hybrid is the more cost effective choice.
Gary65 Champion Author Toronto Posts:1,703 Points:782,970 Joined:Jan 2009	Message Posted: Apr 7, 2012 8:05:23 PM Ignore Gary65 Report Abuse Seems like there never is an end to high prices.
serrog Champion Author Nova Scotia Posts:5,559 Points:1,511,155 Joined:Oct 2008	Message Posted: Apr 7, 2012 8:04:54 PM Ignore serrog Report Abuse Truckers must be hurting
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 8:00:13 PM Ignore Aviator_Rob Report Abuse Nobody's shutting down coal plants, byoftDad. They're just not building new ones. Besides, with all this shale gas we're now swimming in, natural gas plants are cheaper to run and don't have all that mercury and heavy metals like cobalt going up the smokestack.
babugp Veteran Author Philadelphia Posts:339 Points:76,685 Joined:Mar 2012	Message Posted: Apr 7, 2012 7:59:50 PM Ignore babugp Report Abuse sure
VetteFan Champion Author Indiana Posts:9,734 Points:2,027,505 Joined:Aug 2005	Message Posted: Apr 7, 2012 7:58:03 PM Ignore VetteFan Report Abuse This is quite often true.
abacus44 Champion Author Toms River Posts:3,475 Points:747,515 Joined:Jan 2011	Message Posted: Apr 7, 2012 7:57:06 PM Ignore abacus44 Report Abuse Sounds like the start of an inflation trend.
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Apr 7, 2012 7:55:34 PM Ignore Aviator_Rob Report Abuse How much is diesel in British Columbia, jorja13? Is it close to $6.00/gal there?
Blue48 Champion Author Illinois Posts:7,300 Points:1,636,970 Joined:Feb 2007	Message Posted: Apr 7, 2012 7:53:53 PM Ignore Blue48 Report Abuse BUMMER!
30mpg80 Champion Author Lexington Posts:10,014 Points:1,486,655 Joined:Nov 2008	Message Posted: Apr 7, 2012 7:53:49 PM Ignore 30mpg80 Report Abuse Yes, prices will rise on many products from increased delivery cost.
must87searcher Champion Author Maryland Posts:8,974 Points:1,778,640 Joined:Apr 2008	Message Posted: Apr 7, 2012 7:53:41 PM Ignore must87searcher Report Abuse A lot of vehicles, especially large vehicles, use diesel. That includes trucks, trackers, trains, and cars. They will just have to follow autos which use gas. At least diesels have higher mileage.
bif65 Champion Author Virginia Posts:1,023 Points:195,355 Joined:Jan 2011	Message Posted: Apr 7, 2012 7:53:36 PM Ignore bif65 Report Abuse ok
mikaye Champion Author Cleveland Posts:3,829 Points:864,435 Joined:Jun 2010	Message Posted: Apr 7, 2012 7:51:55 PM Ignore mikaye Report Abuse disel is always more expensive
UC2 Champion Author Ventura Posts:1,305 Points:318,255 Joined:May 2010	Message Posted: Apr 7, 2012 7:50:42 PM Ignore UC2 Report Abuse anything new