Submitted by Dirtperson Steve
Diesel here is now $6 everywhere. It’s bad to the point that it makes sense for me to drive my beater truck that I only keep for Lowes/HD trips because it isn’t worth selling. Diesel is well over 25% more expensive than regular and that is the breakeven point for driving the truck vs jeep.
At least I can make a choice. Food delivery…heck, anything delivered will need priced for $6 diesel. It isn’t Ukraine either. They are just doing everything they can, poorly, to keep regular gas price down. Average person doesn’t get angry about diesel prices. This year is the only time I have ever seen diesel cost more than premium locally.
Let’s keep shipping SPR off to Europe though!
No signs of slowing down: Diesel price jumps 42.8% from beginning of the year, way ahead of gasoline’s 25% increase
The increase in diesel price has raced past that of gasoline. Data from the Department of Energy‘s Energy Information Administration (EIA) showed that diesel price has jumped a staggering 42.8 percent while the price of gasoline has increased 25 percent from the beginning of the year.
Given the enormous role of Russia as a supplier of diesel, it is easy to blame ongoing war between Russia and Ukraine for the soaring prices. However, the increase in the price of diesel compared to crude and gasoline began even before the war started.
The price that truckers and motorists pay at the pump is determined by the price of crude. But if the relationship between crude and diesel goes through structural changes that tack on another 10 to 15 cents a gallon to the spread, those gains are going to impact the retail price of diesel even if crude price remains unchanged.
The spread of the prices was just under 40 cents per gallon a year ago, but has now increased to up to $1.20. The spread crossed the $1 per gallon mark on March 18 of this year after starting the year at only 27 cents.
But the retail price is already at the end of a long supply chain that includes oil production, the selection of the types of crudes for a refinery to process, and the split output that includes gasoline, diesel, jet fuel and other products. The growth in the gasoline-to-retail spread is ultimately the final step after changes in the spot products market. (Related: Germany, Austria move closer to rationing gas supplies.)
Diesel prices driving up costs of goods
As consumers notice the spiking gasoline prices, energy industry analysts say the current spike in diesel prices is historic in the sense that it is pushing up costs of goods. Now hovering at all-time highs, diesel prices are being forced upward by the same circumstance that fueled gasoline’s rise.
Patrick De Haan, head of petroleum analysis for GasBuddy, said the price of fuel is the bigger headline as nearly everything people buy is at some point freighted in a vehicle powered by a diesel engine, including ships and barges, trains, trucks and even some airplanes.
This massive increase is hitting consumers hard, including truckers who spend nearly twice the amount for fuel per week. Freight industry analysts also suspect that the very fragmented and volatile trucking industry will likely experience another severe recession, with others going as far as calling it a bloodbath.
“We see when fuel surges as much as it has over the past couple of months, that’s usually when we see a lot of trucking bankruptcies follow,” said Craig Fuller, founder and CEO of industry tracker Freightwaves.
This is bad news for the nearly two million trucking companies in the United States, the vast majority of which are smaller businesses with just a handful of trucks. (Related: Newsom wants to spend $11 billion to give Californians $400 gas cards, throwing more incendiary money into an already inflationary economy.)
“These small operators that live essentially on the cash flow of their trucking operations are not prepared and don’t have the balance sheets or the cash position to absorb these instantaneous shocks to their cash flow,” he said.
Follow Bubble.news for more information about the rising oil and gas prices.
Watch the video below to learn more about why oil prices are getting so high.
This video is from the channel The Morgan Report on Brighteon.com.
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It’s not just a #2 diesel shortage, which is a middle distillate. Other middle distillates include heating oil (diesel w/ more sulfur for higher BTU), kerosene, jet fuel (purified kerosene) and mineral spirits (aka Varsol®). The latter is an important component of furniture finishes, paint thinner and other industrial uses.
Heavier distillates (Fuel oil #4, 5 & 6) propel containerized vessels. They have to be heated to flow. With what – #2 fuel oil.
Nah. It’ll be FINE!!!
(That reminds me… I haven’t checked in on The Critical Drinker in almost a year now. Wonder what he’s been up to…)
Whew.
Where did you get that theory from?
I would say “more sulfur, because it is expensive to reduce the sulfur at the refinery, and the sulfur level is not as tightly limited for heating oil as it is for diesel.”
Outside of that, not many people would think the infinitesimal higher BTU is worth the acid rain (from SO2).
Don’t forget that practically every tractor, combine and truck used to grow, harvest and transport food uses diesel
Just another input (along with seeds and fertilizer) that are being steadily priced out of reach for a lot of farmers
The truckers should just buy an electric truck…problem solved
Ignorant comment.
It was sarcasm.
Can only speak for local conditions, (Greater Pittsburgh Pa. statistical area) but diesel has ALWAYS been substantially more. One Of the first things to come ‘off’ in the refining process from what i remember. “Six ways from Sunday” in reference to screwing EVERYBODY is not a new mantra.
Satan thinks he’s winning, but his time is short. ONLY the Father knows when that will be. Bound to be sooner rather than later.
The ‘Fun’ has not even begun in earnest.
History doesn’t repeat itself, but it often rhymes….
Reminds me of the automotive fall out of financial debacle back in 2008-2009, when fuel-guzzlers suddenly dropped by 50-70% in price on the used market.
Lots of overpriced Iron, be it Diesel or Gas powered, that will be up for “fire sale” prices before long, the next 12-24 months.
Long bicycles, mopeds, motorcycles and small cars!!!
And LPC’s (leather personnel carriers….AKA…shoes/boots)
“It’s like Deja Vu, only all over again!”
Yogi Berra
You know, most diesel engines of today when compared to the past are pieces of junk. They’re full of electronics that early diesel engines completely omitted, and the fuel economy of today is much poorer.
This reminds me of the GM Fuel Miser engine built in 1995 and 1996. They used them in trucks we call bread vans. Those vehicles usually had a 366 GM gasoline V8 and got 4 to 6 mpg. When equipped with the Fuel Miser Diesel V8, they got 48 mpg!
Now, where is that 25 year old technology that almost no one has ever heard of? Another manipulation that most people have forgotten.
Yup my diesel truck sits. I thank God it is paid for and that I never traded it in for a newer one. I bring it out to get lumber (which is also too expensive to buy right now) or for trailer duties. I had to go get bulk mulch last week and paid $5.75 a gallon. I was bitching when I paid and the clerk told me that it is going up 25 cents that day. Went by next day and it was $5.99 a gallon. Sickening….and done on purpose.
The world is heading for economic collapse due to several decades of out of control debt and falling productivity. World leaders know this, and know that they will be held accountable by their own population unless they can divert their anger away from their own governments. Thus they will turn to massive propaganda and war. They will stage false flags operations and blame the carnage on innocent countries in order to drive the hive / tribal physiology humans are so prone to accept. As we are seeing now in Ukraine, and have witnessed so often in the past the people will not have any interest in truth or facts, and will eagerly believe the propaganda that allows them to believe they are part of something powerful and morally superior. It is an endless cycle, dictated by the uber wealthy as they exploit both the earth and its inhabitants. For whatever reason we are destined to repeat the mistakes of the past, possibly to our ultimate destruction.
Still blows my mind the general consensus among peeps and media , cOn-servative or demon-toad, the pity party for Ukraine. and the support! Disgusting.
I liked the days of BioWillie, the smell of french fries. What happened to BioWillie. Stuck in two hour traffic jams smelling french fries was a gas.