According to this article, national gas prices will hit $3.75/gal by Spring. The Feds are projecting $3.40/gal, if you're willing to trust anything coming out of this administration. Last May, the same group of feds projected that crude oil prices would be around $64/barrel and that diesel would be around $2.70/gal now; I have seen it as high as $3.83/gal. Nobody seems to really know. But what is notable is that gas prices traditionally fall after Labor Day and this year, the drop has been minimal at best.
Diesel is worrisome, as that, even more than gasoline, has an impact on food and goods prices, and so much of everything is delivered by trucks.
We may regret ripping up the railroads, after all.
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Monday, December 31, 2007
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Diesel used to be a lot cheaper than Gas because it didn't have to be refined as much and also didn't need as many additives. There are two common grades of diesel, on and off road.Off road having much more sulphur content.
ReplyDeleteThe main reason diesel is so expensive now is that with the new emissions laws that went into effect in 2007 they mandated much lower levels of sulphur.
To achieve this the diesel is now filtered to a finer micron level to comply. Engine manufacturers scrambled to design new engines with tighter tolerances in the fuel injection system and engine management systems, not always real succesfuly.
Pre 2007 engines are still on back order by the thousands for businesses trying to avoid the added expense of the new engines and extend the service life of equipment they already have.
Anyway, thats how it was all explained to me. The company I work for bought eight stand alone Cummins diesel engine packages with a power take off and ready to go by adding fluids and installing a battery and fuel tank and lines. they were 20 thousand dollars
apiece and are only 5.9 liter engines. It is estimated they will pay for themselves over their lifetime in fuel savings alone.
Busted,
ReplyDeleteFor the last several years in these parts, diesel has been more expensive than gas. IIRC, only in the post-Katrina price surge did diesel become cheaper.
Diesel also is basically home heating oil, or so I'm told.
Low sulphur is good, I think.
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