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Why is diesel still high?


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On 12/18/2022 at 9:09 AM, ms60ocb said:

What bothers me is the price difference, Just yesterday in LA or eastern Texas I saw $2 difference between gas and diesel, $1.30 was common .

Clay

 

I have a fleet card (TSD) and I see discounts from the pump price of as much as a $1 a gallon.  Fleets are not paying those inflated pump prices.  Truck stops are making money on diesel from the little guys....

Edited by DG N. AL
To correct quote
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On 12/21/2022 at 3:56 PM, Larry Burkett said:

What irritates me is when I'm driving to the store, and one station is $5.19, go a mile and it's $4.25 then a mile down the road, it's $5.35. It's greed. 

What difference do you see between "supply and demand," and "greed?"

2005 Winnebago Voyage 38J

 

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I agree Paul; some stations change the pump price immediately, others wait until the next tanker unloads to change pump price. IMO it's not greed, but rather following supplier guidelines.

 

2000 Winnebago Ultimate Freedom USQ40JD, ISC 8.3 Cummins 350, Spartan MM Chassis. USA IN 1SG retired;Good Sam Life member,FMCA ." And so, my fellow Americans: ask not what your country can do for you--ask what you can do for your country.  John F. Kennedy 20 Jan 1961

 

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The refineries that they get their fuel from is within a 20 mile radius from the station. One is a Speedway, one is a Shell and the other is a Kroger station. Speedway and Kroger both get their fuel from the Marathon refinery and are the 2 high price stations, and the cheapest one is the Shell, so i would say it is greed.

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And then there's the fact that stations/chains buy ahead (hedge) on the commodities exchange (46,000 gallons per contract), and if they've done a good job there, will pass on the cost differences, whether up or down.  If they were fortunate enough to lock in a lower price, they can be cheapest and still make money.  If they got caught without hedge protection in place, they have no choice but try to make it up at the pump and hope they don't price themselves out of business.

It's not as simple as it appears to the casual consumer.

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