I have noticed the last few weeks diesel

[doc03]

is cheaper than gasoline again. Last year when gasoline was $4.00 a gallon diesel was even higher
and the oil companies had a gazillion excuses for it. Now this year diesel is priced lower again just like it always was. Why is it suddenly cheaper than gasoline again? Another thing food prices went way up last year and they blamed the cost of fuel. Farmers use diesel in their equipment and food is transported on trucks that run on diesel why haven't food prices gone down? I think we are getting screwed.

[proteus_lives]

1. I filled up two days ago and saw the same thing.

My mind went "WTF? Why the hell is diesel cheaper then unleaded?"

:wtf:

[Michigan-Arizona]

2. Diesel is higher than no-lead here in the Tucson, AZ area

[doc03]

5. It is? It is about 25 cents less here

I don't really know when the price went down, I just saw it a few days ago and wondered what happened when it was like $5.00 last year and gas was $4.00. If diesel is like 1/2 of what it was last year shouldn't products in stores be cheaper than last year?

[anigbrowl]

3. recession = less commercial activity = less demand

Also, gas prices always go up during the summer months because people drive more for pleasure; they'll be flying less this year which means more road trips.

[Phoebe Loosinhouse]

7. Exactly. Very bad sign that indicates commercial usage is way down. nt

[spanone]

4. yesterday here in middle tn diesel was 2.19 and reg was 2.35

i thought that was kinda strange, being as it's been higher the last few years

when every station across every town in every state raise their prices at the same time .......

[Statistical]

6. A large amount of gasoline consumption is fixed.

A family that uses car to take kids to school, parent to work, and around town for chores can only cut back so much.....

Say if in 2006 they were using 500 gallons of gasoline. Now it is hard times maybe they can cut back but they aren't going to cut back to 100 gallons of gasoline. The amount they can change due to prices is limited.

On the other hand less economic activity can make huge difference in commercial usage.
Less items bought at retail = less being hauled by trucks
less construction = less used by construction vehicles
less cruise passengers = less ships moving
less imports & exports = less worldwide shipping trips per year
less mail order/internet orders = less used by FedEx.

Diesel consumption has fallen.

One barrel of oil produces BOTH diesel & gasoline. Similar gasoline demand and reduced diesel demand = too much diesel on the market. Each station is trying to sell theirs.

[doc03]

10. Sounds like a good explanation to me. Now why

hasn't the prices on the products we buy, all shipped by trucks or RR using diesel fuel gone down?

[Statistical]

11. Profit.

Stores got burned on rising fuel. They weren't able to raise prices as fast as fuel cost rose.

Now they figure they will make some of that back.

Consumer is use to price $x. Why reduce it?

Not saying it is right but not only is fuel cost down but commodity prices are down.

Take a box of cereal = paper + grain + sugar + fuel + energy costs.
All are down 30%-70%.

The production cost of a box of cereal is half of what is was summer of 2007.
The $$$ is going somewhere. My guess is food producers & grocery stores.

[doc03]

13. One thing for sure Kroger and Walmart didn't pass the

profits to their employees, I'll bet the CEO got his share..

[Fumesucker]

8. It's been that way at least a month here in Atlanta..

And yes, we're getting screwed.

[Fumesucker]

9. It's been that way at least a month here in Atlanta..

And yes, we're getting screwed.

[liberalmuse]

12. I noticed that today.

It was almost 30 cents cheaper than 87 Octane. I haven't seen that in a long, long time.