Why is #2 fuel oil ($3.29/gal) more expensive than gasoline ($2.95/gal)?

[HughMoran]

I buy over 100 gallons at a time of the fuel oil and it always used to be less than gasoline per gallon. It is a less refined & dirty product (though it may contain more energy/gallon) - is it just the free-market forces at work?

[spanone]

?#2 why is diesel as expensive or more expensive than regular gas?

[hatrack]

1. This time of year, likely relative demand - people aren't driving that much now - too damned cold!

Are you in the Northeast? I know it's the dominant winter fuel there.

[HughMoran]

3. Yes, in NE

I just don't think I can continuee to heat my house with this stuff - it's doubled in price since Bush the oilman took office - WTF?

[hatrack]

7. Not enough "jawboning" them Saudis to "open the spigots", it would seem . . .

Kind of like that dynamic performance the other day with Israeli Prime Minister "Elmo" and Palestianin President "Mahamooooooood Abbas".

:eyes:

[supernova]

2. Refinery capacity?

I've heard several rumblings that refineries are maxed out and struggling to keep up w/ demand.

[RUMMYisFROSTED]

4. Because they can charge it.

And you'll likely pay it.

[Lance_Boyle]

5. it is basically the same stuff as diesel#2 and Jet A

I never understood why diesel rises faster and higher than gasoline, as it is a byproduct of the gasoline refining process. But then I started thinking that it's not just diesel car owners like me driving prices. The same fuel stock is used in planes, trains, ships, and trucks. And at this time of year, also in home heating. Lots of demand, same old supply.

Depending on where you are, you might be able to find biofuel alternatives for your #2. Price would probably be similar to (or maybe even less than) the petro alternative. But you'll need some petro still to prevent gelling in serious cold.

[A HERETIC I AM]

9. Gasoline used to be considered the byproduct of the oil distillation process, not Diesel

Of course, it all depends on how you look at it, i suppose. In the early days of oil refining, gasoline was considered a waste product and was commonly just dumped, often into rivers. There is a considerable difference in the boiling points for Jet-A/Kerosene, Diesel and Gasoline. This link has some interesting information on the process;

http://science.howstuffworks.com/oil-refining2.htm

It should be noted that Diesel is taxed more heavily in some states than in others. Also, there is "Off-Highway" Diesel (used in farm and construction equipment) that is taxed differently (usually much lower) and is dyed a red color so it is easily identifiable.

Page showing recent prices by region;
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

Page showing Diesel prices by state;
http://www.etrucker.com/apps/promiles/fuelprices.asp

Interesting page on how fuels are priced and why;
http://www.eia.doe.gov/bookshelf/brochures/diesel/index.html

[wishlist]

11. Unfortunately biofuel in most places has been $.10 more per gallon

I checked into biofuel last spring, it was about $2.25 then with regular #2 at $2.15 and only one company in my area provided it but a couple more companies planned to offer it this winter. I should have filled up then with one or the other, but I had a very large tank nearly full so decided to wait. I still don't have to buy now so I am waiting till spring to check again.

Biofuel should burn cleaner (saving on furnace maintenance as well as environment and air quality) and hopefully may become closer in price to regular with cost of oil skyrocketing as well as with more companies providing biofuel this year and next. Companies I talked to said they were going to use soybean oil in their blend, not just used frying oil.

[havocmom]

6. Gasoline here is over your fuel oil price

The diesel that gets food grown and to market is four cents shy of $4 a gallon here. Your grocery bill is going up too.

[madokie]

8. cause the can get by with it

no other reason

[driver8]

10. Where in the hell is gasoline $2.95/gal.?

I DREAM of $2.95/gal gas!!

The lowest I have seen regular unleaded here (Los Angeles) is $3.33 -- and that is hard to find.

[TommyO]

13. $2.88/gal in NJ where I get it, $3.03 where I live in PA.

[shraby]

12. Gas is 3.39 here in WI