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Old 04-27-2011, 07:40 PM
 
Location: Charleston Sc and Western NC
9,273 posts, read 26,373,824 times
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Hedgers....that's all it's about.

Live within a few miles of work, "and play," and it's not a big deal.
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Old 04-27-2011, 08:29 PM
 
Location: Where nothing ever grows. No rain or rivers flow, Texas
1,085 posts, read 1,569,578 times
Reputation: 468
Quote:
Originally Posted by RocketSci View Post
I wonder why there is such a spread between gasoline and diesel at the pump - 10 to 20 cents per gallon higher for diesel - when the wholesale price of diesel is 15 to 20 cents LOWER than gasoline right now.

Maybe a few months ago diesel cost more wholesale than gas, but it sounds like the distributors are still keeping the inverse price spread (gouging the customers) and making a whole lot more profit off of diesel sales. As of 4pm today diesel futures and gasoline futures:
NYMEX DIESEL 3.25/gal
NYMEX GASOLINE 3.44/gal
When you add about 60 cents per gallon to cover typical taxes and profit margin in Texas, and if the above prices hold, we should expect average prices for gas and diesel to be about 3.85/gal(diesel) and 4.04/gal(gas) in a couple of weeks.

Someone is gouging diesel drivers at the pump.
I think thats due to the fact today's supply of commodities were technically bought months ago, thru futures trading.
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