Buy a Diesel Vehicle and Save 30 to 40 Cents a Gallon

Why is Diesel 30-40 Cents Cheaper Than Gas?

By Irene Lynn, published Jun 05, 2007
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Diesel fuel like gas seems to be seasonal in nature regarding its price fluctuations depending on outside factors. Diesel fuel is a byproduct of regular fuel, a waste product from producing regular gasoline. A byproduct means that it is an alternative product derived from a manufacturing process. Basically, diesel is heating oil with a fuel tax on it. That being said, why is it cheaper than gas overall, with exceptions?

First, with diesel there is not as much refining involved as with gasoline vehicles. In addition to this, you just do not have as many diesel vehicles here in the United States as they do in Europe. Therefore, you have lower demand here with diesel. It is just basically old economics of supply and demand. The less demand there is for diesel, the greater supply of diesel on the market.

In the United States, we have been slow in realizing the improvements of diesels since the late 1970s when all you would see are those nasty trucks blowing out black exhaust. Diesel engines have been improving over the years, environmentally speaking and overall performance in general.

In 2002, it was reported that only .05% of automobiles were sold with diesel engines. Presently, European sales account for fifty percent of all cars sold in Europe. However, Europeans have regularly had to pay twice the cost for gasoline compared to our cost, so this was a fact they have lived with for many years. But still, the Europeans have always had energy as a main focus for their environment.

Buy a Diesel Vehicle and Save 30 to 40 Cents a Gallon

On May 19, 2007 in Georgia, we saw about 30 cent cheaper for diesel fuel versus for regular gas

Credit: Irene Lynn

Copyright: Irene Lynn

Takeaways
  • In 2002, it was reported that only .05% of automobiles were sold with diesel engines
  • Heating oil affects diesel and increases in crude oil prices won't matter to diesel.
Did You Know?
First, with diesel there is not as much refining involved as with gasoline vehicles. In addition to this, you just do not have as many diesel vehicles here in the United States as they do in Europe.
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