Diesel prices...

[BigDiesel]

Would someone please esplain to me why diesel shot up 9 cents in one day......

I realize that oil went up on Thursday about 6 bucks, but then on friday it gave it all back plus some .....

[geomon]

I think it takes some time for price changes at the barrel level to work its way thru the supply chain and end up at the pump. That might have been due to something that happened 1-2 weeks ago??

Strange tho...price increases will sure to be passed thru but price decreases....hmmm maybe sometimes they forget to pass those on :?

[RostyC]

It's been dropping slowly around here but I'm on the other side of the map. No price spikes at all. Maybe it something more specific to your region?
I just paid 4.19 earlier today. There's a guy down the road that's 4.16 but I don't like that place so I rarely go, plus it's farther.

[NotSteve]

When oil prices go up overnight you need to raise your prices overnight or you won't be able to fill your tanks and cover the full amount.

If your tanks hold 1,000 gallons and it cost you $1.00 per gallon then it cost $1,000 dollars to fill them. If the price goes up to $2.00 per gallon over night then it will cost you $2,000 to fill the tanks the next time but you only have $1,000.

So, you have to plan ahead and raise the prices at the pump or you won't be able to afford to fill them the next time.

Of course, when the price drops they don't take into consideration the extra amount they have been charging since the last fill up.

[RostyC]

Price of oil goes up 3.00 per barrel, next day 10 cent increase per gallon.
Price of drops 10.00 per barrel, next day no change, following day no change, following day no change, following day no change, following day no change, I see the trucks coming to refill the tanks almost daily wth?, following day no change, following day no change............... following day drops 2 cents and holds for over week while oil is still dropping. WTF Man???????

Warning: This post was exaggerated for effect but it's close I betcha.

[solo379]

I do not think, it's all about cost of oil. It's more about competition, and speculation....

[RostyC]

I do not think, it's all about cost of oil. It's more about competition, and speculation....

I'm going to speculate 50 cents a gallon, think I got a chance?

Seriously though, you on the money Solo. There's plenty of oil.

[HWD]

Here's the way it was explained to me:

Gas/diesel goes up, prices at the pump go up the same day. Some ask "that stuff is already in the tanks under the pumps at the store...it's bought and paid for. Why are these people raising prices on existing inventory?" The answer lies in what it will cost to replace what's in the tanks. Retailers are not lowering prices right away despite the new 17-year low price per barrel for one reason...the oil market is still volatile, so if they drop the price and oil goes up again, they'll be screwed.

The other answer is state/federal taxes per gallon of gas/diesel. Anytime oil goes up, we get pinched and screwed, the dingbat left-wing Congress we have now wants to subpoena big oil, speculators, your grandmother, the head of the local neighborhood watch, ad nauseum ...do you ever see them offering to take a reduction in their "cut", which is more confiscation of your hard-earned money? No, you don't. The fact is if Slick Willie hadn't banned drilling in 1995 we wouldn't be here now. A true, honest-to-God alternative to oil will not materialize in our lifetime. New drilling will cause prices to drop soon and permanently...why? Because the countries that have us by the balls now will realize that we are on the road to self-sufficiency. We need to stop electing politicians that 1) think oil is a four-letter word and 2)play directly into the hands of Russia, Venezuela, Iran and all the other OPEC countries that wish us nothing but ill will. Two more things:

Drill here, drill now!

Do NOT let Barack Hussein Obama anywhere near the Oval Office!

[Colts Fan]

I've seen diesel here in IN for under $4/gal. (cash price)

[GMAN]

It was $3.93 in GA earlier today.

[deep dixie blue]

I recently got a fuel card from EFS who has negotiated some good discounts with TA, Pilot, and Wilco Hess. I get the better of cash price minus 4 cents or the truck stop's actual cost plus 4 cents.

I've noticed that when the price of oil is falling, as it has recently until the end of last week, the discounts off the pump price have been very substantial, on the order of $0.25 to $0.40 per gallon. In fact, I think they were touting average discounts of about $0.34 last week (actual price varies by individual truck stop, even within the same chain). In Mississippi friday before last, I paid $3.76/gal when the pump cash price was $4.04. If I'd waited till I'd gotten to Tuscaloosa, my price would have been $3.72. Each day you have to go online to get updated pricing.

But when the price of oil heads upward, as it did at the end of last week, the discounts evaporate. I just checked this morning and nearly all of the Pilots in my neck of the woods (Georgia) are at a $0.04 discount. Which means I'm just as well off or better using my Amex with the 5% cash back even after I pay the premium credit pump price.

The moral of this story is that, yes, the truck stops are much faster adjusting their prices on the way up than down. No big surprise there, but concrete evidence that they do.

[Orangetxguy]

Here's the way it was explained to me:

Gas/diesel goes up, prices at the pump go up the same day. Some ask "that stuff is already in the tanks under the pumps at the store...it's bought and paid for. Why are these people raising prices on existing inventory?" The answer lies in what it will cost to replace what's in the tanks. Retailers are not lowering prices right away despite the new 17-year low price per barrel for one reason...the oil market is still volatile, so if they drop the price and oil goes up again, they'll be screwed.

The other answer is state/federal taxes per gallon of gas/diesel. Anytime oil goes up, we get pinched and screwed, the dingbat left-wing Congress we have now wants to subpoena big oil, speculators, your grandmother, the head of the local neighborhood watch, ad nauseum ...do you ever see them offering to take a reduction in their "cut", which is more confiscation of your hard-earned money? No, you don't. The fact is if Slick Willie hadn't banned drilling in 1995 we wouldn't be here now. A true, honest-to-God alternative to oil will not materialize in our lifetime. New drilling will cause prices to drop soon and permanently...why? Because the countries that have us by the balls now will realize that we are on the road to self-sufficiency. We need to stop electing politicians that 1) think oil is a four-letter word and 2)play directly into the hands of Russia, Venezuela, Iran and all the other OPEC countries that wish us nothing but ill will. Two more things:

Drill here, drill now!

Do NOT let Barack Hussein Obama anywhere near the Oval Office!

That first sentence I highlited is not factual. While Clinton did sign off to continue the ban, the actual "Ban" you refer to was put in place by the father of our current president...George H. W. Bush. Each president since...BOTH of them...have signed off on that ban every year..until this year, when George W. Bush, did not.

The second phrase that I highlited.... that is not factual either. If the equipment were available to allow all of the AMERICAN oil companies...and ONLY American oil companies to begin drilling in the "Banned" area..it would still take a minimum of seven years to get that oil into the system.

Orders for "Deep Water" drill systems, that meet current MMS guidlines, are 3 years behind in production schedules. Most of the rigs currently being built, are under contract to foreign companies. Some of those rigs will be drilling in American GOM waters..most will be drilling in Mexican, Cubam or southern GOM and Caribbean waters belonging to Venezuala, Trinidada-Tobago or Brazil. Some of the rigs under construction are destined for waters off the coasts of Africa..Vietnam..China...and in the Black Sea. ALl of those rigs are being built overseas...South Korea..Vietnam..Norway...Singapore. NONE are being built or even have been ordered, here in the US.

After drilling equipment, infrastructure is the second obstacle. There is ZERO infrastructure in Florida, South Carolina, North Carolina, Virginia, or Delaware, to support the movement of crude oil inland. How easy do you suppose it will be to get that infrastructure built.

Have you ever heard of "The Sierra Club" or "The National Audobon Society"?? They...as well as Greenpeace...are going to fight tooth...nail...and $$$$$$$$ to prevent drilling.

Do you suppose China...Vietnam...and the Saudi's would contribute money to their cause???