[Vwdiesel] Diesel below $3?

[William A. Thompson]

I have been using diesel here in the U.S.A. for
about 12 years now and filled up two times a week
for the first half of those years. What I noticed
back then and until a couple of years ago, when
prices began a habit of fluctuating without end,
was that diesel was always 5 to 10 % cheaper than
regular unless prices were fluctuating. While fuel
prices fluctuated diesel could be 5 to 10 % more
expensive until prices stabilized long enough for
diesel to become lower than regular again.

It has been a couple of years since prices have
stabilized enough for diesel to go below regular,
but I think it will.

    ... Bill

----- Original Message ----- 
From: "William J Toensing" <toensing at wildblue.net>
To: <vwdiesel at vwfans.com>
Sent: Saturday, November 01, 2008 11:14 PM
Subject: [Vwdiesel] Diesel below $3?


> Took a trip to Berkeley to attend an antique
radio swap meet. In the Sacramento area regular is
now down to $2.499 & I think I saw diesel as low
as $2.75 but regular was still close to just under
$3 in the Bay area & I think I saw diesel at
$3.25.
> Some, including me, have questioned as to why
diesel costs more than regular. As I understand
it, motor fuel reflects world costs plus local
taxes. As I understand, most if not all Europeans
have long had high taxes on gas to discourage use
& encourage fuel efficient vehicles to help reduce
negative balance of payments. European members,
correct me if I am wrong. Further, to help reduce
balance of payments, many nations in Europe have
taxed diesel less than gas because of diesel's
higher fuel efficiency. As a result, over 50% of
new cars sold in many European countries are
diesels. As a result, there is higher demand for
diesel in Europe than the USA & therefore,
European refineries are shipping surplus gas to
the USA & American refineries are shipping diesel
to Europe where they can get a higher price.
Hence, USA diesel costs more due to European
demand now that we are refining ultra low sulfur
Euro spec diesel.
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