Why has diesel fuel been more
Why has diesel fuel been more expensive than gasoline?
On-highway diesel fuel prices have been higher than regular gasoline prices almost continuously since September 2004, a break from the historical pattern of diesel fuel prices usually being lower than gasoline prices except in cold winters when demand for heating oil pushed diesel fuel prices higher. The main reasons why diesel fuel prices have been higher than gasoline prices in recent years are:
High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China, India, and the United States, and a tight global refining capacity available to meet demand during the period of high economic growth from 2002 to mid-2008.
The transition to less polluting, lower-sulfur diesel fuels in the United States affected diesel fuel production and distribution costs.
The Federal excise tax for on-highway diesel fuel of 24.4 cents/gallon is 6 cents per gallon higher the gasoline tax." - EIA statement.
So WHY does Europe subsidize diesel and US subsidize gasoline?
Diesel demand is higher globally...WHY?
US refineries are optimized for legacy gasoline car volume...could be optimized for higher mix of diesel fuel. If we start EXPORTING nat gas, that will surely raise that price in US just as Diesel exports (safer, less explosive) drive prices up in US. Can we see real energy balance analysis on which fuel would use less crude oil if demand IN USA was based on 50:50 mix?