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Thursday, April 12, 2012

Diesel is close to the price of gas - can you believe it???

Starting to notice that diesel fuel is close to the same as regular gas!

When has that happened, not in quite a while!




I can remember when diesel was less than regular gas but that has been a time ago. You would think that diesel would cost less since it takes 30% less crude oil to make a gallon of diesel, another reason for vehicles to switch to diesel.

But today's suppliers pretty much have their hands tied as to the price since so many different taxes are tied to the cost, state, federal taxes add a pretty good markup to the fuel.

I always figured the reason diesel was higher was because they know the trucking companies need the fuel to deliver our goods across the country and they can get more taxes from the trucks than from consumers.

The disappearance of the trains transporting goods have made the trucking industry the only option to move goods and since local manufacturing has dropped off in the US trucking has become very important to trade.

I'm sure the fuel brokers know that raising the price of diesel would make everything we buy skyrocket including all groceries, clothing, supplies, etc. The trucking companies would charge more and the expense is passed on to the consumers.

Or is this another attempt by the government to convince consumers to buy smaller vehicles that get better MPG? I think a report that was released yesterday said that people who bought Hybrid and electric vehicles would not re-purchase those vehicles because the cost was too high for what they got!

In other words, their purchase of a fuel conservative vehicle was not worth it! High maintenance, low trade in values, and smaller vehicle so you cannot haul or transport as many people. The price tag of those Hybrids are at least $5000 to $10,000 more than conventional - is it worth it - evidently not!

Maybe we will see more people switching to diesel since they will soon realize that their engine will last twice as long and a bigger vehicle can get better mileage than gas models.

No matter why the political pricing, the diesel fuel prices are staying down for now and we can enjoy it while we can.

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