Something odd about fuel prices:

[ret5hd]

Today I noticed diesel is priced cheaper than gasoline. I don’t think I’ve seen that in decades.

I wonder what the implications are. Is trucking down so much it is creating a diesel glut?

[Laelth]

1. That is very strange.

I have no explanation.



-Laelth

[The Genealogist]

2. I notice odd things about fuel prices all the time.

I live "on the wrong side of the tracks," as they used to say. I had to drive through a tonier part of town today, where the gas was a full dime per gallon cheaper. It was that way when I lived in Florida, too. Despite being par for the course, I do find it odd and curious that poor people are expected to cough up extra for gas.

[ret5hd]

4. I use the GasBuddy app...sometimes over a $1/gal spread...

Right now I see diesel in a range of $1.79/gal to $2.89/gal
and regular from $1.89/gal to $2.19/gal.

I'm telling ya'...use an app.

[soothsayer]

5. I use it too!

[Wellstone ruled]

3. Consumption is way down.

With Covid determining every ones shopping habits,the number of Trucks needed to make deliveries has been curtailed big time. Railroads have modified operations because of lack of Freight. Apparently,no one is buying our Refined Diesel over seas.

Sign of the times,we are in a massive Recession.

[soothsayer]

6. Diesel used to be cheaper because it's less refined, yeah? Cheaper to make

Then little VW diesels and smelly Mercedes diesels came along and it’s been expensive since.

I’m probably missing a lot of other facts and factors but that’s the story I tell myself.

[Turbineguy]

7. From a 42 gallon barrel of crude

you get 19-20 gallons of gasoline and 11-12 gallons of diesel

[ret5hd]

8. So what's changed in the last week or so...

gas was $0.30 or so cheaper than diesel
and now diesel can be found cheaper than gas?

My suspicion is... and only a suspicion, no real data... is the trucking industry is collapsing.

[Massacure]

10. It may not necessarily be the trucking industry collapsing

Refineries can "crack" longer chained oil components into lighter ones - this allows them to create less diesel and more kerosene or less kerosene and more gasoline for example. If kerosene or gasoline inventories are sufficiently high, it may be more profitable to sell diesel at a discount than to crack longer chained oils into shorter chained oils more useful for the lighter fuels.

[demosincebirth]

9. I the Bay Area, gas is still over three dollars a gallon. Diesel, a little less.