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Old 04-07-2010, 06:06 AM
 
Location: Lehigh Acres
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Here's a question that I have been pondering for the last couple of years, and can't make a sensible deduction of it.

Before the last fuel price hike, diesel was often the same price as low-grade or 87 octane fuel, sometimes a penny or two less. Now it is the price of mid-grade. Is that a direct relationship to the housing boom which required far more diesel powered trucks? Is it in relation to the popularity of diesel trucks and diesel cars? Anybody have any insight?
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Old 04-07-2010, 06:12 AM
 
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Diesel is more expensive now due to the new regulations in which diesel is refined.

The biggest change was the ultra low sulfur.

Older '80s and some '90s trucks don't run their best with the newer diesel fuel.
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Old 04-07-2010, 06:31 AM
 
Location: The cupboard under the sink
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In the UK, the government made a promise that diesel would always stay 10p per litre (15c) cheaper than petol. This was maybe late 80's/early 90's.
everyone had normal petrol (gas) cars, and it was to encourage us to give up our gas powered cars and move to less polluting diesels.


This lasted (coincidentally) until diesel cars began selling in nearly equal numbers to petrol ones, then, appeared to be conveniently forgotten.

It actually wound up being the opposite, where diesel was 10p/litre more expensive for the last few years.

They have started to level out a little now, but we're approaching record prices here, somewhere around 1.20 per litre. ($1.80)
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Old 04-07-2010, 06:39 AM
 
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Quote:
Originally Posted by bobman View Post
They have started to level out a little now, but we're approaching record prices here, somewhere around 1.20 per litre. ($1.80)
Yesterday I paid $2.89/gal for diesel for the tractor
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Old 04-07-2010, 06:43 AM
 
Location: The cupboard under the sink
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Yeah, the US prices are high compared to what you're used to, but they're low compared to ours.

IIRC, we are in the top 5 for fuel prices in Europe, Norway were highest, I seem to recall.

Quote:
Originally Posted by Gimme3steps View Post
Yesterday I paid $2.89/gal for diesel for the tractor
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Old 04-07-2010, 07:32 AM
 
14,777 posts, read 34,525,274 times
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Diesel became more epensive over the past several years do to new regulations regarding the refining and blend of diesel fuel. Ultra-low sulfur diesel is more expensive to make and distribute then the older diesel blend.
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Old 04-07-2010, 08:04 AM
 
Location: Columbia, California
6,662 posts, read 25,352,291 times
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Quote:
Originally Posted by Gimme3steps View Post
Yesterday I paid $2.89/gal for diesel for the tractor
Farm tractor or road tractor? Farm use would not have the fed/state road tax included. Here in CA the combined road tax is $0.75 a gallon.
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Old 04-07-2010, 09:45 AM
 
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It's a farm tractor. For me to buy off-road fuel, it's a pretty good drive and the savings is just not there.
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Old 04-07-2010, 11:50 AM
 
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Quote:
Originally Posted by ferretkona View Post
Farm tractor or road tractor? Farm use would not have the fed/state road tax included. Here in CA the combined road tax is $0.75 a gallon.
Farm use "road tax exemption" is great, in theory.

However, the states and fed have made is such a difficult process to claim the exemption, that it's not worth it for those of use who use nominal amounts of fuel, such as my place, under 1,500 gallons per year.

By the time I get dyed off-road fuel delivered to my tanks at the farm, it's just as expensive after taxes deducted at year-end as buying road taxed fuel at the pump and hauling it home 12 miles in my 200 gallon pick-up bed tank. Couple that with the farm liability insurance expense to have a fuel farm at my place ... where the tanks used to be in-ground, and a risk for contamination (old single wall tanks) ... we've removed the tanks, sold them for scrap, and had the soil tested and certified as being petroleum contaminant free. I've got an above ground pad for my 200 gallon tank, and I keep the area clean. No need to have the EPA or DEQ or water authorities all on my case to clean up an environmental spill these days.

They used to allow us to file our tax exemption doc's with the fuel supplier, and we'd purchase our farm fuel road tax-free. Now they must collect all the taxes, and we get to file for the adjustment at tax time with the state and fed taxes.

This also allows the road tax authorities to capture the road taxes from people who have diesel powered road vehicles at their farms ... like our pick-up trucks, or the diesel powered cars that somehow would get fueled from the same tank that the tractors pulled up to to get fuel. You'd be surprised how many folks have gotten caught through the years, using a diesel powered car and claiming the mileage for business purposes ... and then not able to show they'd purchased anything but road tax exempt fuel. It's a big mistake ... even today, if a diesel powered car gets into an accident around here, the police/deputy will take a fuel sample, which has nothing to do with the causation of the accident. But if you've got off-road dyed fuel in the tank, you've got a lot of explaining to do ... and the taxman will assume that you've used all of your exempt fuel for the street unless you can strictly document otherwise. Between penalties and interest, it can add up to a lot more than the tax savings per gallon over the years.
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Old 04-08-2010, 01:37 PM
 
5,879 posts, read 7,693,043 times
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Quote:
Originally Posted by JBMallory View Post
Here's a question that I have been pondering for the last couple of years, and can't make a sensible deduction of it.

Before the last fuel price hike, diesel was often the same price as low-grade or 87 octane fuel, sometimes a penny or two less. Now it is the price of mid-grade. Is that a direct relationship to the housing boom which required far more diesel powered trucks? Is it in relation to the popularity of diesel trucks and diesel cars? Anybody have any insight?
The bastards are price gouging nothing more or less. This is BS because Diesel fuel is a byproduct of gasoline and should cost considerably less than gas. They are taking advantage of the situation and getting away with it. Never the less, I still love my big Power Stroke 7.3L and get around 19-20 MPG on the highway with 3:73 gears, 4 wheel drive and it is a long bed and Super-cab. The price right now per gallon is about $2.89 to $2.99 around this part of the Midwest! Those bastards!!LMAO........
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