Sound Off on Current Diesel Price

Derrel H Green · Apr 25, 2010

Question

Simply put, how do we as individuals determine how much fuel is sold at any given
station and whether they have sufficient turnover so their fuel is not in fact 'old' diesel.

We cannot park outside the property and observe to see how many
vehicles stop and fill up to ascertain how much fuel is being sold.
Even though I'm retired, I do not have that much time to waste.

It would seem to me that the stations with the lower prices might be moving more fuel
because money talks and therefore the fuel there would be 'fresher' don't you think?
Also, how many trucks stop and fuel up? Some large over-the-road rigs can take on as
much as 300 gallons at one time which would be the same as perhaps 15 to 20 cars.

Also, just because the station appears to be clean above ground does
not mean the same is true below ground in their storage tanks.

Somethings to consider don't you think?

Honeydew · Apr 25, 2010

Diesel drivers and possibly many g@sser drivers would be pleased if the fuel station signs looked more like this:

I cut throttle and snapped the pic of a local fuel dock sign yesterday on our way back in from the island.

Paid $3.06 this A.M. to fill the TDI. I believe it's this organization lobbying for more equitable and fair fuel tax for diesel fuel.

TDI2Fan · Apr 25, 2010

Relationship

Derrel H Green said:
Simply put, how do we as individuals determine how much fuel is sold at any given
station and whether they have sufficient turnover so their fuel is not in fact 'old' diesel.

We cannot park outside the property and observe to see how many
vehicles stop and fill up to ascertain how much fuel is being sold.
Even though I'm retired, I do not have that much time to waste.

It would seem to me that the stations with the lower prices might be moving more fuel
because money talks and therefore the fuel there would be 'fresher' don't you think?
Also, how many trucks stop and fuel up? Some large over-the-road rigs can take on as
much as 300 gallons at one time which would be the same as perhaps 15 to 20 cars.

Also, just because the station appears to be clean above ground does
not mean the same is true below ground in their storage tanks.

Somethings to consider don't you think?

This goes to developing a relationship with the place that you purchase fuel. I know the supplier of my local fuel stop (Southern States). Also, I confirmed with the distributor that they deliver as much as the station told me they do. My station has its tanks filled three (3) times a week! It also happens to be the most thrifty of the stations in my area.

As a COOP, Southern States is about relationships. In almost ten years and many Diesel machines, I have not gotten a bad tank of fuel and I have not gotten more than a couple droplets of water out of the fuel filter when drained.

I have not purchased fuel from a "gas station" in a very long time.

I do not believe that I am in the minority on this.

TDI2Fan · Apr 25, 2010

Non-Ehtanol

Honeydew said:
Diesel drivers and possibly many g@sser drivers would be pleased if the fuel station signs looked more like this:

I cut throttle and snapped the pic of a local fuel dock sign yesterday on our way back in from the island.

Paid $3.06 this A.M. to fill the TDI. I believe it's this organization lobbying for more equitable and fair fuel tax for diesel fuel.

As I understand it, "Marathon" is the retailer that sells non-ethanol fuel as standard.

lghf · Apr 25, 2010

$3.059 at Quick Chek in Saugerties

TDI2Fan · Apr 25, 2010

ULSD - $2.899 @Southern States by Shannon Airport; B5 - $3.099 @Quarles Shell, at I-95 & Route 3.

boutmuet · Apr 25, 2010

TornadoRed said:
Wholesale prices in the US are in line with wholesale prices elsewhere in the world.

Yes but the reason for the higher prices recently is because China and India have been buying more oil. Taking up more of the oil supply.

anahata · Apr 25, 2010

I hear that speculation on demand (not exactly the same as demand) is causing much of the spike and that current supplies are abundant.

boutmuet · Apr 25, 2010

anahata said:
I hear that speculation on demand (not exactly the same as demand) is causing much of the spike and that current supplies are abundant.

That's happening as well. Notice whenever you see reports the economy is improving in some respect oil prices rise on speculation the economy will improve as a whole.

Derrel H Green · Apr 25, 2010

What a Surprise

Went out for a late Brunch and passed by a local Chevron in Wildomar at about 11:30 AM.

After eating, did a little driving to note how far off my odometer is by using the
mileposts on I-15, and returned home going by that same Chevron station.

During the two hours or so, the price of D2 had gone from $3.199 to $3.299. Ten cents in two hours?
And on a Sunday? Give me a break. Is this what we are in store for?

jimnms · Apr 25, 2010

Derrel H Green said:
Simply put, how do we as individuals determine how much fuel is sold at any given station and whether they have sufficient turnover so their fuel is not in fact 'old' diesel.

When I worked at an airport, we had to keep tabs on how much we sold and try to estimate how much we'd need to keep.

I'm sure "gas" stations do the same. The station should only store enough fuel that they estimate they're going to sell. If they fill their tanks every time they buy fuel, and the price goes down and they've only sold 1/4 of that tank, they'll lose money if they lower their pump prices.

mrGutWrench · Apr 26, 2010

Tom Servo said:
That was very enlightening. I remember reading about Flying J selling off all of some business — pipelines? And shortly thereafter the price shot up. That must've been the management team.

__. Also, there's been a big change in the trucking business over the years. Back in the day, (grey hair talking here), a lot of truckers were "owner-operators"; a big company would hire them "$.40 a mile to haul this load to Dallas". If the trucker could refuel in Dallas at a place that had fuel priced a few cents lower, he put that money in his pocket. Now, all the big companies have run the independent drivers/trucks out of the market to limit competition. Now the driver doesn't care -- if the truck stop has a nicer restaurant, or hotter hookers, or more luxurious showers, etc., that's the place to stop. When you fuel up, you just turn in the receipt to the company anyway. (Plus, the big trucking companies have discounts with the truck stops so they get the reduced price, it's just that we don't.)

__. There are many little things going on out there. But REAL competition would be good for us ... but it's' not going to happen.

goldgary · Apr 27, 2010

jimnms said:
When I worked at an airport, we had to keep tabs on how much we sold and try to estimate how much we'd need to keep.

I'm sure "gas" stations do the same. The station should only store enough fuel that they estimate they're going to sell. If they fill their tanks every time they buy fuel, and the price goes down and they've only sold 1/4 of that tank, they'll lose money if they lower their pump prices.

I asked a local station how prices are set, this was Shell. She said prices are faxed to her daily on what to charge. So the owner doesn't own the fuel in the ground, Shell still does, till the point of it being put in your car. So Shell can change prices at anytime, not just on delivery. This practice may not be true with spot market/private gas owners.

Gary

ott88 · Apr 27, 2010

$3.079 at BP today.

Diesel Fuel · Apr 28, 2010

$2.899 at a Hess station in Virginia Beach 4/27.

rotarykid · Apr 28, 2010

Paid $2.799 for D2 , ULSD in Denver this morning . It's ranging from that to as high as ~$3 today . RUG is running as low as $2.51 , $2.61-$2.76 is the range I saw today in the area .

lovemybug · Apr 28, 2010

Been $3.09-3.14 for a few weeks now, around here.

numl0ck · Apr 29, 2010

Driving around tonight prices where anywhere from $3.05 to $3.29.

CERBER · Apr 30, 2010

In Bulgaria...8$ per gallon(just for information-average sallary 250-300$)

lovemybug · Apr 30, 2010

Just saw a couple places today that had gas up to $2.99. Diesel was still the same at $3.09. Looks like they're getting ready for the Memorial Day weekend.

mrGutWrench · Apr 30, 2010

goldgary said:
I asked a local station how prices are set, this was Shell. She said prices are faxed to her daily on what to charge. So the owner doesn't own the fuel in the ground, Shell still does, till the point of it being put in your car. So Shell can change prices at anytime, not just on delivery. This practice may not be true with spot market/private gas owners. Gary

__. Gary, this is very typical of the entire retail fuel industry. They got burned pretty badly in the '73 embargo/shortage and the '79 Jimmy Carter energy crunch. Now, they don't price by what they paid, they price by what the replacement will cost.

TornadoRed · May 1, 2010

mrGutWrench said:
__. Gary, this is very typical of the entire retail fuel industry. They got burned pretty badly in the '73 embargo/shortage and the '79 Jimmy Carter energy crunch. Now, they don't price by what they paid, they price by what the replacement will cost.

This works pretty well when prices are stable or climbing, but it can lead to a quick bankruptcy when prices start falling quickly. Lots of stations closed in late 2008, during the collapse in oil and fuel prices from the July 2008 highs. Station owners had to be nimble, to stay competitive with neighboring stations; if they kept prices too high for too long, they ended up with an inventory that cost $0.50-1.00/gallon more than they were able to sell it for. I think this happened with some biodiesel sellers, also.

The folks who deal with this every day are the ones who buy for airlines, utility companies, and the trucking industry (either trucking companies or truck stops). One mistake can cost hundreds of millions. I wonder if this is what pushed Flying J into bankruptcy? though they seem to have survived and most of their stations are still operating.

pgenis · May 1, 2010

C E R B E R said:
In Bulgaria...8$ per gallon(just for information-average sallary 250-300$)

A friend of ours lives there, in Sofia. There is no need to have a car, unless you really want to show off. She takes public transportation to everywhere, taxi when really necessary.

Try using public transportation in DC, and that is one of the best places in the nation for it. Or try to go from Washington DC to Martinsburg, WV without a car. Only one train goes there once a day, at 4 PM. Coming back next day at 1 PM. Costs $16 or $32 (on weekends). Distance - 80 miles.

lghf · May 3, 2010

According to Mapquest a local station's diesel is $3.30, my normal station for filling up is $3.179.

boutmuet · May 3, 2010

The cheapest station I saw on my drive home was 3.15 for diesel if you were paying for cash. Most stations are around 3.30.

apaterso · May 4, 2010

seems like we are all in the $3.00 something range. In my neck of the woods I see a range of $3.23 - $3.40

lovemybug · May 4, 2010

Going up around here, again. Seeing gas at a lot of places in the $2.99-3.09 range and diesel in the $3.15-3.19 range. I would have thought that regular gas would have gotten to be about even with diesel by now. Maybe when it gets closer to Memorial Day.

TornadoRed · May 4, 2010

Around here, diesel rose from about $2.95-2.99 last week to about $3.04-3.09 Monday. Then gasoline jumped nearly a dime today, from around $2.75-2.79 to $2.85-2.89.

I've been watching the spread on the May contracts, but for June both HO and RBOB are about the same. I am guessing this means the current spread at the pump, with ULSD about 22 cents more than RUG, is not going to change anytime soon. Someone is buying distillates and I guess it is probably the Chinese. I still have a worst-case scenario, a reason why they are stocking up on commodities -- I hope I am 100% wrong. But they are doing it in the wide open, the whole world is watching, I just wonder if anyone is considering the same scenario as me.

Ted Hurst · May 5, 2010

I still have a worst-case scenario said:
what are you thinking the worst-case scenario is?

Derrel H Green · May 5, 2010

I'll Bite

Okay fellows, what is the plot, and how will they do it?

Sound Off on Current Diesel Price

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