Posted by MoparNorm on Thursday, April 13, 2006 at 11:26PM :
In Reply to: Can anyone explain to me why Diesel is still going up when posted by Allen Patnode on Thursday, April 13, 2006 at 9:37PM :
Diesel is second priority in the refining scheme of things. Most citizens use gasoline and gasoline is first priority because of higher demand (and the potential for unrest). With the number of refineries still off-line after Katrina and off shore platforms still being repaired, supply can barely keep up with demand. That being said, demand for diesel is on the increase, Jet fuel, truck fuel, electric power plant fuel, trains, etc. ALL run basically diesel fuel or a dirivative thereof. Increasing consumer use of diesel, thanks to Dodge and the inpending change over to low sulfur diesel in addition to CA only diesel, all have contributed to supply pressures.
The basic fact is that there have been few if any refineries built in the US in the last 20 years. We need more and more modern refineries to keep production even with or even ahead of demand. That may never happen in the country the way we are going. European prices are high because of socialism and we are right there a step behind them........
MN
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