Why is the price of diesel fuel higher than gasoline? It costs 60 percent less to make!!!?

Question

Why is the price of diesel fuel higher than gasoline? It costs 60 percent less to make!!!?

Answer 1

The oil industry likes to rape people, that's why.

Answer 2

Simple supply and demand.



Refineries are turning out 50+ formulations of gasoline each year as well as other petroleum products like diesel. It's not physically possible to make all of these products all of the time and new refineries are built only rarely due to onerous regulations (although CA has recently relaxed it's stance on building new refineries).



If enough new refineries are built prices for some products, including diesel, will come down a little, but not a lot.



The demand for gasoline argues for favoring the production of gasoline over diesel, leaving just enough diesel available to be sold at what the market will bear (i.e., an historically high price).



For those who allow high gas prices to lead them to the conclusion that oil companies / gasoline retailers / OPEC / etc. are somehow getting away with murder I'd suggest remembering that oil is a commodity and behaves in the marketplace like every other commodity (political interference aside).



I mean, copper is ridiculously high right now (I know because I have to buy a lot of it) and it's due to good old supply and demand. The world is presently using copper (and oil) at very high rates and producers are able to price accordingly while at the same time working overtime looking for more copper (and oil) to sell at today's high prices.



And, if demand remains constant and the search for more copper and oil is successful, then prices will come down. Likewise, if demand cools because of pricing or any other reason, then prices will come down.

Answer 3

First you need to understand that Diesel fuel, Kerosene, and home heating oil are the same thing. A diesel engine will run normally on all of these, so think about a northern winter an people using these fuels to heat with, look at your interstate highways and look at all of the tractor trailers burning up diesel at about 6 miles per gallon, locomotives run on it, the entire military, tanks, hummers, generators, and other equipment, and mostly because the oil companies, who are crying although their profits are up 500%, stick it to us and laugh about it. lastly 50 to 60 cents a gallon tax. But mostly because they( the oil companies) know we need it and will pay it.

Answer 4

nothing to do with cost to make rather supply and demand...for example a cup of coffee at starbucks is only about 20 cents to make (all things considered) but the demand is high therefore the price is about 1.80 USD. disel is the number one fuel for shipping products throughout US therefore very high demand and very high price.

Answer 5

because we truckers have to buy 200% more fuel each time then 4-wheelers (PPL IN CARS)average car/suv has bout 15-22 gallon tanks,,we in 18 wheelers have atleast 100 gallon tanks and usaully have 2 so 200 gallons,,to your 20,,its MORE MONEY is all,,plus more tax money

Answer 6

It's a more speacalized fuel. Not as high of a market compared to gas