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Why diesel fuel is higher priced than gasoline...
One reason why diesel fuel today is higher priced than gasoline is because of the 2007 EPA mandate for ULSD fuel - and not because it costs more to produce.....
The 500-ppm sulfur pre-2007 diesel fuel was not usable in Europe, so it wasn't exported. Producing ULSD means this fuel is now acceptable for use in Europe, and a lot of the diesel fuel being produced today here in the U.S. is being shipped to Europe. The economics of "Supply & Demand" have simply fallen apart here in the U.S. as a way of pricing fuel. We could stop using diesel fuel entirely, and it wouldn't produce lower diesel fuel prices.
Read this 2/08 Reuters article, entitled: ANALYSIS-Exports keep U.S. diesel prices above gasoline
This is the result of our government regulations working for the American people...not...
Last edited by More Power; 05-21-2008 at 13:08.
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