Quote:
Originally Posted by trekkor
I just spent $3.62...For diesel!
Someone please tell me why diesel is currently $.20 more expensive than premium?!?
7-8 years ago it was $.99 .
KT
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7-8 years ago they weere losing money on every gallon produced, too.
I remember that well, the refiners were selling their products for less than thy cost to make but the goverment would not allow them to reduce production. Some of my freinds lost their jobs during that time to cut costs.
Diesel does not cost more to produce that gasoline, if anything it is a little cheaper to produce. But, refiners have to make a choice. They can maximize diesel production or gasoline production. The market determines which they do, if they can make more money maknig diesel they will make more, if they can make more on gasoline that's what they do.
The wholesale price of diesel in Ca right now does not justify a 20 cent premium over gasoline, it would appear that the station owner is raising the price. Either he doesn't want to sell as much diesel or he thinks he can sell as much at the higher price.