is cheaper than gasoline again. Last year when gasoline was $4.00 a gallon diesel was even higher and the oil companies had a gazillion excuses for it. Now this year diesel is priced lower again just like it always was. Why is it suddenly cheaper than gasoline again? Another thing food prices went way up last year and they blamed the cost of fuel. Farmers use diesel in their equipment and food is transported on trucks that run on diesel why haven't food prices gone down? I think we are getting screwed.
I don't really know when the price went down, I just saw it a few days ago and wondered what happened when it was like $5.00 last year and gas was $4.00. If diesel is like 1/2 of what it was last year shouldn't products in stores be cheaper than last year?
3. recession = less commercial activity = less demand
Also, gas prices always go up during the summer months because people drive more for pleasure; they'll be flying less this year which means more road trips.
6. A large amount of gasoline consumption is fixed.
A family that uses car to take kids to school, parent to work, and around town for chores can only cut back so much.....
Say if in 2006 they were using 500 gallons of gasoline. Now it is hard times maybe they can cut back but they aren't going to cut back to 100 gallons of gasoline. The amount they can change due to prices is limited.
On the other hand less economic activity can make huge difference in commercial usage. Less items bought at retail = less being hauled by trucks less construction = less used by construction vehicles less cruise passengers = less ships moving less imports & exports = less worldwide shipping trips per year less mail order/internet orders = less used by FedEx.
Diesel consumption has fallen.
One barrel of oil produces BOTH diesel & gasoline. Similar gasoline demand and reduced diesel demand = too much diesel on the market. Each station is trying to sell theirs.
Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators
Important Notices: By participating on this discussion
board, visitors agree to abide by the rules outlined on our Rules
page. Messages posted on the Democratic Underground Discussion Forums are the
opinions of the individuals who post them, and do not necessarily represent
the opinions of Democratic Underground, LLC.