4 dollar gallon gas is here

[jmimac351]

Plus, they have VAT. The "Value Added Tax"... don't ask me who's getting that value.

[YerDugliness]

Still, doesn't seem enough to make the price twice as high as here.....

Does the UK have to import all fuel?

Cheers from Dugly

[SP01715]

Originally Posted by YerDugliness

Not sure I understand this, either. Isn't it easier to refine diesel from crude? I remember back in the '70's that diesel was quite a bit cheaper than gasoline, so what's the deal with the switch? I realize there are more "consumer" diesel vehicles on the roads these days, but it doesn't seem to me that there are enough to justify the price differential. Is it an increase in diesel use by the "big rigs"? I know that the agriculture industry has changed their land tillage procedures drastically, land that was typically plowed every time there was a rainstorm back in the '60's and '70's is now only plowed once a year (if that much), so agricultural use of diesel would have decreased.

What's up?

Cheers from Dugly

It does not make sense to me . When I bought my first diesel in 99 I was paying alot less than regular gas. Over the years since then diesel has slowly risen to the point now where it is usually higher than premium. When I owned my gas stations I asked several people who worked for Conoco why diesel was so much higher and never got a good answer. You see alot less people driving diesel trucks around here now compared to 4-5 years ago, so you would think demand would be down. I don't know what the answer is, but I don't expect to see it flip back to the way it used to be any time soon.

[twobjshelbys]

Much of the cost of diesel is diesel specific taxes imposed on the assumption that taxing diesel compensates for road repairs caused by heavy trucks. It penalizes the consumer (pickups and passenger vehicles).

Just to go the opposite, during the Jimmy Carter era fuel shortages, there were huge lines for gasoline, but diesel stations were empty. So I bought a diesel Mercedes 240D. In Colorado I think it was 1977 or so, diesel was as low as 19c. That was because stations did not collect taxes at the pump but instead based on truckers logs and miles-driven-in-the-state forms. It was a few years later that the tax was collected at the pump and the truckers were livid. The cost of diesel was on par with regular gasoline, but the mileage of almost any diesel was better so the "cents per mile" ratio favored diesel. It no longer does.

[Maurice Johnson]

Originally Posted by my427cobra

Just my 2 cents worth and not any endorsement of any parties policies:

I subcribe to the last man standing strategy.

North American is perhaps the only continent that can be self sustaining in the future - fertile lands, lot's of water, plentiful natural resources and the ability to generate all kinds of power (getting the tree huggers out of the way). But petroleum resources need to be protected as long as we can.

Nobody wants to pay higher prices, but I'd rather use up their petroleum reserves (as long as we can afford to) and save ours until we really need it.

But to do that we should be establishing all the capacity we can (creating jobs at the same time) so we're ready. It can take 10 to 20 years to develop the drilling, refining and nuclear plants we would need.

Just look at the changes the world has gone through over the past few weeks. Can anyone guess where we'll be in 10 to 20 years? (Read the Black Swan - no not the ballet story).

Greg

If a "furriner" may be allowed to comment--I agree emphatically with the above.
The prime responsibility of a nations leaders is maintaining continuity, - managable hardship now to protect future assets. The Japanese bulldoze mountains into the sea to build airports, and rebuild the mountains with foreign obtained iron ore and bauxite.
I was in the lumber business at the time of the Kobe earthquake, and the price skyrocketed on West Coast Fir ply. Japan bought 32 million Sq ft, because they had no ability to produce it themselves.
The North-Western quadrant of the world map is in for some rough times. Up to now, we have set the goalposts for world economic matters, but we are being overwhelmed by sheer numbers of challengers-at lowest costs.
IMHO, the US is still the greatest country in the World- but I do worry about you guys.
You bear a huge burden of being the world's policeman, but who the hell else has the national and moral stamina?
Just my opinion, and forgive me if I offend anyone-I'm just a simple Cobra lover.

[YerDugliness]

Originally Posted by twobjshelbys

Much of the cost of diesel is diesel specific taxes imposed on the assumption that taxing diesel compensates for road repairs caused by heavy trucks. It penalizes the consumer (pickups and passenger vehicles).

In KS there is a dye in the diesel that has had road taxes paid on it....but not in the agriculturally related diesel (which, AFAIK, is the same diesel without the dye). Many farmers have their own 500 gallon above ground gasoline and diesel tanks, and they get delivery by large tankers just like the gas stations. I could see how they could say that their only use for the diesel would be agricultural and therefore not pay road taxes on it, but if the authorities were to check gas tanks (and they DO go to the livestock auction houses and check to see that the semi-tractor's tanks contain diesel with the dye in them) and find it is clear agricultural diesel they will ticket the owner/operator. I guess the farmers could buy some dye and put it in themselves, but I'd bet the refineries keep the type of dye they use a highly guarded secret.

I do remember how diesel was $.20/gallon cheaper in the 70's, when gas was below $1.00/gallon.

Not quite sure how to avoid "penalizing" the diesel automobiles and pickups without the semi-tractor drivers taking advantage of the situation. Nobody who runs a gas station wants to be the "dye police", I'm sure! I see the TX DPS running checkpoints on the major interstate routes, perhaps they already do a fuel check.

Cheers from Dugly

[fordracing65]

With all the fuel we cobra owners use we should start our own oil company.

[Sharroll Celby]

I put all my gas on a Chevron card. The bill comes in every month, I pay it, and dont give it another thought. I figured I just did more driving that month.

[Silverback51]

Let's see here. 3000 miles / 8.5 MPG X $4.50 per gallon. That's $1588.24.

Looks like it's going to be an expensive vacation this year.

[4RE KLR]

$3.79 here today

[twobjshelbys]

Now 3.25 here. Went up 20 cents in 2 days.

[OZCOBRA]

Around $5.15 to $5.25 a gallon here you guys have got it good!!!!...

[4RE KLR]

Yea, maybe so but it has gone up $0.40 per gallon this week.

As we all know fuel cost always goes up in the summer. I hope I am wrong but I see $5.00 a gallon (for diesel) here again this summer.

But you what.... Lets worry about things we 'can' control

[WardL]

Soon the cost of gas may go over $4 to cover the ever increasing cost of screwing us.

[SP01715]

Originally Posted by 4RE KLR

Yea, maybe so but it has gone up $0.40 per gallon this week.

As we all know fuel cost always goes up in the summer. I hope I am wrong but I see $5.00 a gallon (for diesel) here again this summer.

But you what.... Lets worry about things we 'can' control

It depends on what happens in Saudi Arabia. If unrest happens there it will be alot more than $5.00.

[joyridin']

I really don't understand the issue. Just tell Obama to visit Iraq, ask the Iraqis to help us out since we spent years helping their country get out from under Saddam. I'm sure they will gladly sell oil directly to us considering so many of our soldiers died there for their freedom.

After all, they are selling oil directly to China and China did nothing but sit back and watch.

[392cobra]

I think we are real lucky that the Department of Energy was formed in 1977 to cut our crippling 30% dependence on foreign oil.

[Ron61]

Almost every Summer for the past three years our gas has gone above the $4 per gallon mark. Now they are saying it could go above $5 per gallon, but I don't know if that is true or just more hype to make people happy it is only $4.89 a gallon. Right now we are just getting close to the $4 per gallon mark as it went up 55 cents last week.

Ron

[computerworks]

Mod Caution...

Gas, prices, diesel, drive it or park it, coast downhill, run a 2-bbl, etc.

All OK comments for this thread.

However, a political detour will:

a) make it go away
b) make you go away for a timeout.

Thanks

[SP01715]

local Chevron this morning in San Diego regular is $3.93 and diesel is $4.25.