Diesel and not so declining diesel prices

[Tornado Red]

Originally Posted By: John K
Drove down to SC this week, and noticed a big variation by state - seems KY and SC diesel prices are much closer to gasoline. Why is this? Do they vary taxes that much? Wonder too if diesel prices spiked some to pay for the cost of reducing the sulfur content?

These are not typical times -- gasoline is high in the Southeastern US because of refinery and pipeline problems associated with the hurricanes. No major damage, just a disruption of production and distribution.

 

[bob_ninja]

There is always a very strong demand for diesel and it only keeps going higher, not lower. Most of construction and farming machinery is all diesel and their demand is fairly constant. Plus there is also trucking which competes with rail, so can go up and down.

However, the big change in the past 1-2 decades is that most of Europe's cars are now diesel. Similarly China and India that don't have tough clean air regulations would prefer diesel as well. Thus between Europe and Asia you have ever increasing diesel demand.

Really the demand is so high and will remain high pushing prices higher thus canceling any costs savings from better efficiency. For North America there is no point in getting a diesel car any more. Most hybrids will achieve and surpass diesel engine efficiency while mass production is bringing the price premium down.

 

[Tornado Red]

Originally Posted By: bob_ninja
Really the demand is so high and will remain high pushing prices higher thus canceling any costs savings from better efficiency. For North America there is no point in getting a diesel car any more. Most hybrids will achieve and surpass diesel engine efficiency while mass production is bringing the price premium down.

Clearly you've never driven a chipped TDI -- 250+ lb/ft of torque and still 45-50 mpg highway. There is no hybrid under $50,000 that is as much fun to drive.