So When's The Summer Diesel Price Drop Happening??

[swartzentruber]

So When\'s The Summer Diesel Price Drop Happening??

DOE Gas Prices

Still waiting for all those predicting the summer price drop to admit they were wrong. If you look at those prices, diesel is up by about 50 cents in the past year every area but west -- gas is only up about 10 cents. No evidence of a diesel price drop at all this summer (at least right now). Locally to me, it's even worse. I thought it was bad enough when diesel was the same as premium -- last time I checked prices, diesel was 15 cents MORE than premium.

 

[PDJetta]

So When\'s The Summer Diesel Price Drop Happening??

The problem is that distilate fuel (diesel, heating oil, and jet fuel) demand is up 6% worldwide over what it was last year for the past six months or so. We also experienced a colder than normal winter in North America. We can thank China for part of the increase in demand in diesel. Gasoline demand is up only about 2% this year.

Also, diesel has a more INELASTIC demand than gasoline. That means that if gasoline and diesel both increase in price by the same percentage amount, demand for gasoline will drop off faster than it will for diesel. This is because diesel fuel is used mainly by businesses (commerce), where fuel cost increases get passed to the customer. Businesses usually do not have the option to curtail activities (deliveries, earth moving, etc.) caused by increases in fuel prices.

There are also fears that distalate supplies will not be adequate for the coming fall/winter heating season. This keeps prices high. Although we have an abundance of crude oil stockpiled in record amounts, there is a shortage of diesel fuel becausae of high demand and lack of refining capacity. A new refinery has not been built in the United States in about 20 - 30 years. Its the bottleneck. That's the bottom line.

Gasoline is used mainly by the public and the public excercises its option to consume less as its price rises.

Now my big question/comment is this: Why the heck don't the oil companies shift the refinery mix from gasoline to diesel by a few percentage points. It seems they could cash in on the high diesel prices, bring the cost of diesel down a little, while making gasoline a little more expensive. Perhaps they wish to keep the price of diesel high so they are not doing this. I think its time the government get involved in refinery operations and petroleum product pricing.

--Nate

 

[tdi_twister]

Re: So When\'s The Summer Diesel Price Drop Happeni

To take your link a little farther,

http://www.energy.gov/engine/content.do?BT_CODE=PRICESTRENDS

The top three links under the "Featured Publications & Reports" are all useful. The "Short Term Energy Outlook" was updated today and "This Week in Petroleum" is due for an update tomorrow. Interesting stuff.

 

[Long_Range]

So When\'s The Summer Diesel Price Drop Happening??

I think its time the government get involved in refinery operations and petroleum product pricing.
--Nate

Now their's a real novel idea. Nate, I trust you've had a few to many beers before coming to that conclusion.

 

[WillR]

So When\'s The Summer Diesel Price Drop Happening??

I here Shrub is going to offer old milatary bases to refinery companies so they have a place to build. That should get past all the "not in my backyard" supports right from the start!

 

[WisTDI]

So When\'s The Summer Diesel Price Drop Happening??

I here Shrub is going to offer old milatary bases to refinery companies so they have a place to build. That should get past all the "not in my backyard" supports right from the start!

Yes, and it will bypass any and all silly state environmental laws since it is federal property. That only leaves the federal environmental laws to deal with.

 

[dubvulture]

So When\'s The Summer Diesel Price Drop Happening??

I think its time the government get involved in refinery operations and petroleum product pricing.
--Nate

Now their's a real novel idea. Nate, I trust you've had a few to many beers before coming to that conclusion.

The Feds are, after all, so efficient at running businesses. What's that called again when the government has ownership of business enterprises...

 

[Thunderstruck]

So When\'s The Summer Diesel Price Drop Happening??

All right, PD! Sounds like they took your advice. Linky Read the last paragraph.

 

[PDJetta]

So When\'s The Summer Diesel Price Drop Happening??

The oil traders must be reading the TDI Forums!

--Nate

 

[jimlockey]

Re: So When\'s The Summer Diesel Price Drop Happening??

The price drop has alread happened. Now it is time to go up again.

Write your congress!

 

[DrStink]

So When\'s The Summer Diesel Price Drop Happening??

I think its time the government get involved in refinery operations and petroleum product pricing.
--Nate

Now their's a real novel idea. Nate, I trust you've had a few to many beers before coming to that conclusion.

That, or he's been channeling Richard Nixon.

Nixon had plenty of successes in office with the EPA, the Clean Air Act, opening China and arms control with the Sovieta, but price controls wasn't one of them.

 

[bobsbug]

So When\'s The Summer Diesel Price Drop Happening??

02/05/05 2.029
02/09/05 2.049
02/15/05 2.049
03/03/05 2.199
03/09/05 2.199
03/17/05 2.239
03/24/05 2.299
03/30/05 2.299
04/07/05 2.359
04/12/05 2.359
04/18/05 2.329
04/24/05 2.259
04/30/05 2.329
05/04/05 2.329
05/09/05 2.259
05/13/05 2.259
05/17/05 2.239
05/27/05 2.239
06/03/05 2.259
06/06/05 2.299
i agree, on its way back up here in so. wisc.. all same company, all but two same station

 

[greenskeeper]

Re: So When\'s The Summer Diesel Price Drop Happening??

Doesn't look like it's going to happen this year, unlike years past. Lowest this year (since Jan 1st) was $2.19/gal and now it's back up to $2.39/gal

However, I am wondering if that is just a bit of price gouging since the Pocono 500 is in town. I'll have to see in a couple weeks when I fill up again.

 

[IXLR8]

Re: So When\'s The Summer Diesel Price Drop Happening??

Doesn't look like it's going to happen this year, unlike years past. Lowest this year (since Jan 1st) was $2.19/gal and now it's back up to $2.39/gal
However, I am wondering if that is just a bit of price gouging since the Pocono 500 is in town.

I don't think it is localized gouging. Prices here in central Mass are heading back up. They had bottomed out at $2.25/gal about a month ago.. they have been slowly climbing since and now it is at $2.50.

 

[Keiller]

So When\'s The Summer Diesel Price Drop Happening??

Diesel is on its way back up now at $2.13/gal and $.15 higher than regular gasoline.

 

[VelvetFoot]

Re: So When\'s The Summer Diesel Price Drop Happening??

It's consistently more than the premium gas price here in Albany, NY. Unbelievable. Imagine when it starts to get cold!

 

[TornadoRed]

Re: So When\'s The Summer Diesel Price Drop Happening??

Diesel seems to be following the price of crude oil, down and back up.

Gasoline isn't, not really, because stocks of gasoline are so plentiful. So it's not possible for the wholesalers to raise the price of gasoline. And in fact it's continuing to fall in many places.

 

[eli]

Re: So When\'s The Summer Diesel Price Drop Happeni

yeah, what velvetfoot said.
in NH yesterday i paid $2.05 for unleaded, and $2.49 for diesel. if i had driven further, i could have paid about $2.35 for diesel, but either way, it's not amusing!

if the prices are like this in the summer, we can kiss the diesel-fuel-cost-advantage goodbye next winter.

sincerely,

leadfoot

 

[dieseldorf]

Re: So When\'s The Summer Diesel Price Drop Happening??

Imagine when it starts to get cold!

yep, it's a very real long-range problem for a lot of families. Glad that I heat with nat gas.

I filled up on Saturday at the local high volume Shell. Price was $2.30/gal...$53 to fill the tank.

There were probably 40 cars waiting (idling) in line for gasoline @ $2.07/gal. I overheard some guy saying that gasoline is going to spike up this week.

 

[RobertB]

Re: So When\'s The Summer Diesel Price Drop Happening??

I was in Tulsa this past weekend. Diesel prices were as low as $1.95! I think that has something to do with the closeness of the West Tulsa refineries. Too bad I'd already filled up -- prices as close as Okmulgee and Henryetta were in the $2.10 range, and back home in Dallas even the truck stops are in the $2.15 area.

I just keep telling myself that it's *good* that diesel prices aren't fluctuating... that I can plan better this way. Yeah, right. I'm glad I live in Texas, where I've never seen a Home Heating Oil truck in my life.

 

[dvsails]

Re: So When\'s The Summer Diesel Price Drop Happeni

I can't help but wonder why we're not hearing sounds of outrage from the truckers? They're the once that are hurting the most.