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What pisses me off is that diesel is so much easier to refine than car gas, then to turn around and find the price being higher. Its all taxation and surcharges. |
Paid $3.85 a gal in Va. yesterday.
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We don't care if you use gas or diesel, as long as the market allows for profit. We routinely modify adjust our processes to either maximize diesel or gasoline, depending on the market. If we can make 3 cents per gallon on diesel and only 1 cent on gas, we tweak the process to make more diesel. a few days later we might tweak to back. The reason diesel is high than gas right now is simple supply and demand. Lots o'folks in Europe use diesel. Lots of folks in china and India are using more and more diesel. they have huge refineries in India that can only make so much diesel, so they still have to import a little, from us. That keeps our price high. At the same time they have a slight excess of gasoline right now due to waning demand so they export some of it, to us. That is driving the cost down. If anyone wants to really learn about this stuff and is willing to put in the effort, as opposed to simply pulling BS theories out of your butt, go to this link and spend a week or six studying. U.S. Energy Information Administration (EIA) |
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But where did you get the idea that the price at the pumps has anything to do with the cost to refine? They two are typically not related at all. I wish they were, then we wouldn't have to work so freaking hard to make a profit. Out of the last 10 quarters we lost money in at least 5. |
The refineries themselves often operate at a loss in high-price-of-raw-materials environments like we have today; the costs of raw materials plus operation are not supported by market price of the refined products. However when the refineries are owned by the same companies that do extraction & supply, it doesn't really matter. The refining operation is a small piece of the puzzle. It's like saying oh woe is Walmart because their loading dock operations don't make enough profit.
To whine about how taxation is killing the refiners when they're directly supported by the suppliers raking in billions is highly disingenuous. |
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