What’s up With the Price of Diesel, Besides the Price?
59Diesel Crush
Another Way to Widen the Gap.
There has been quite a bit of discussion lately as to exactly why the price of diesel fuel has risen so drastically of late. There are the claims that the "new" mandated low sulfur fuel is much more expensive to refine. It turns out that the cost is only increased from four to five or five to seven cents, depending upon whom you ask. There is also an "ultra" low sulfur diesel which allegedly may cost as much as fifteen cents per gallon more to refine. Not being an expert on petroleum commodities and the production thereof, I find myself forced to rely upon information provided by those who profess to be. Knowing the motives of those in the oil business and of those in their pay, I find information provided by them or their experts to be of somewhat dubious value at best.
There are also taxes to be considered. Apparently diesel is taxed at a higher rate than gas, both federally and by states. Once again, one is left to wonder why, exactly, this should be the case. This information, much of which is provided by government agencies, is also only as reliable as its source and I do not believe it necessary to discuss the degree to which our government is to be trusted at this juncture.
None of this data, even if one accepts it as accurate, sufficiently explains why diesel is now consistently much more expensive for the end user than even the highest grade of gas. As long as I can remember, at age sixty one, diesel fuel has always been less than regular gas. Was diesel always "more costly" to refine? Was it always taxed at a higher rate than gas? If yes, then why has its price to the consumer not always been the highest? If no, then why has the situation suddenly changed? Many explanations, which I believe are purposefully convoluted and dauntingly complex, are being proffered, complete with colorful graphs, tables and lists of data to dupe the reader into believing that the questions have been answered. After all, this kind of technical crap is way too complicated for the average American to understand anyway, right? And these graphs and tables and all this scientific stuff sure looks and sounds, well, scientific, right? So, these people must know what they are talking about, right? What is more likely to put the general public to sleep quickly than a long, highly technical, excessively detailed, pedantic scientific article? The problem is, reading more than a few of these explanations soon brings one to the realization that they do not all concur, which begs the question posed by the title of this discourse.
One fact which is perfectly obvious is that almost everything we consume travels a great distance to get to the "big box" stores where we purchase them. Because of the centralized nature of these giant retail outlets, the products they sell are delivered in very large quantities from regional and district warehouses. The more they buy for resale the lower the price they pay. Furthermore, as a non-producing debtor nation we must first acquire the products we consume from other, productive, countries. Once again, this freight must travel great distances to our ports before being transported, again, to the aforementioned warehouse. Even the few things we produce here, foods being the most obvious, still come from large centralized sources such as the fields and processing plants of giant corporate agribusiness and must travel far before arriving on our dinner tables.
What, some of you may be asking, does any of this have to do with the cost of diesel fuel? The answer is quite simple and obvious. Virtually all the vehicles, with the exception of aircraft, used for heavy transport run on what fuel? Did you guess diesel? Bravo! If you want a gold star to stick on your forehead, send me five dollars plus fifty cents for shipping and handling and a self-addressed envelope and I shall send you one! Please allow four to six weeks for delivery. All sales are final.
So, if the price of diesel fuel goes up substantially, the shipping and transport companies responsible for moving this stuff around the globe and around the country will see their bottom line shrinking correspondingly. What ever will they do? Well, I suppose they could simply absorb this extra cost as a magnanimous gesture to their customers until it reduces their profit to the vanishing point. Given the fact that greed is far and away the primary motivator of capitalist enterprise I feel that scenario is a bit improbable. I think, instead, they may just possibly elect to pass along this financial burden to the retailers they supply. The retailers, being far more compassionate, due to their much closer relationship to the beloved consumer, will certainly absorb this increase as long as possible, will they not? No? Oh, right, I forgot, the retailers are giant, money sucking capitalist enterprise as well! I guess that means this impediment to financial survival might get passed further down the economic food chain all the way to the bottom feeders, the working people of America.
I submit to you that this is deliberate manipulation on the part of those who long for global feudal monarchy or a two caste system of Masters and Slaves.
The increased burden of artificially inflated diesel prices has already driven some smaller freight companies out of business. It will affect the cost to the end user of virtually everything. Nearly all vehicles used in agriculture run on diesel. Most heavy construction equipment runs on diesel. Even the trucks that deliver diesel to the pumps run on diesel. So the high price of diesel is contributing to a higher price for diesel.
Any and all cost increases to corporations will always be immediately passed along the economic food chain to the consumer. Many of us could barely afford the "everyday low prices" at WalMart a year ago. As those prices go up in response to fuel cost, more people will be forced into poverty. More people will require government assistance. People working sixty hours a week will be forced to apply for food stamps. People loosing their businesses will be forced to seek jobs flipping burgers at fast-food poison peddlers. Unemployment will increase. Loss of medical "insurance" will put more people at risk. Build the list of repercussions at your leisure. The ripple effect can be most effective. A small stone tossed in here can affect the whole pond. Butterfly effect. Dominoes. Take your pick.
In short this is just one more attack in the convoluted, bizarre often incomprehensible war of the Supremacists against the masses. This war has raged since before there was recorded history. Try reading the works of J.R.R. Tolkien and C.S. Lewis with a slightly different perspective. Attempt to keep in mind that these epics were written as more than just fairy tales to entertain us.
Make no mistake about it, Good and Evil are very real states of being and an equally real war is being waged between them to this day. If Good is ever to be victorious it will be necessary for us to look at reality in a simpler way, to ignore the complexities and distractions that Supremacists use to distract us from the essence of our being. We need not necessarily destroy those who are evil. We only need not aid them in their conquest. Left to their own devices they will destroy themselves.
Anyone who says that without Evil there can be no Good is one who wishes Evil to triumph. Without Evil there can only be greater Good.
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Comments
The worst part is they KNOW what they're doing! It's what they want. They really want only two kinds of people in the world, rich and poor, masters and slaves. At this rate it won't be long before they get their wish.
I bought home heating oil this week--just under $1000 for 200 gallons. Last October it was $247 for 100 gallons, and I had to reorder and fill it 3 times before winter was over. We spend about $2000 last winter total to heat the house to 65%. If prices stay exactly where they are it will cost double that this winter, but they likely won't stay where they are. I'm really quite frightened about it. We are looking into finding a woodburner to augment it, and of course we'll be keeping the thermostat just high enough to keep the pipes from freezing--65 degrees will be a luxury this winter--we're all praying for a mild winter. Our home is 1000 square feet and of that we only use about half of it, so it's not like we're in a minimansion.
Again, I can't help but feel that we will see violence before we see a new president. I hope I'm wrong, but I don't think I am.
Thanks for the hub. It's good to know another pinko. If only there were more of us.
Your place, like mine, is quite small. That's a good thing. If you have access to wood that you don’t have to pay for then a wood burner of some kind would be a big help. We heated our place last winter with ONLY wood in our fireplace and that’s not really a very effective method. A good old cast iron potbelly stove can put out a tremendous amount of heat. However, if you don’t live near a wooded area where you can get deadfall you may find that buying wood is just as expensive as fuel. I don’t know what the prices are in your area but around here they’re absurd. I know you’re in Connecticut. I lived in the Danbury, New Milford, Kent area for around forty years. You should be able to find a source of deadwood without travelling too far. I have to go up into the Sandia Mountains and pay the state to take out deadwood from the park. The bright side is that it’s only ten bucks a cord. (4 x 4 x 8)
Do whatever you can to get yourself off the grid ASAP. Don’t wait until it starts cooling off to go looking for wood and when you think you’ve got enough for the winter, double it!
I think your apprehension is well founded. I know that’s not terribly encouraging but I just have to say it as I see it. Good luck to us all in the Dark Age that’s coming.
I have a wood stove and access to wood, but what happens when everyone starts chopping down trees just to keep warm? Look at Europe about 1,000 years ago, when entire forests disappeared in a single generation! And there were certainly a lot less people around in those days!
We will be a long time in the dumper before this problem is solved!
Hi Jeff.
I firmly believe that solar, wind and maybe a little geothermal can provide us with all the electricity we need. Electric baseboard heaters are great. I put some in a little place in Kent, Connecticut about forty years ago. Back then the winters up there weren’t much different from Maine or Vermont. Those baseboard units kept the place toasty.The diesel problem is world wide. we have the same issues here in South Africa. I believe the problem is because of the composition of Brent oil or Texas crude and the refineries built all over the world were designed to distill so much petrol, so much much diesel, so much power paraffin and so much jet fuel per barrel. But because of diesel cars the world demand for diesel is up and it takes more barrels of crude to produce the required diesel causing the price hike. but if this is true why isn't regular petrol gettting cheaper? Ha because nothing is getting cheaper.
Also i'm told he cost of retooling the refineries to use different grades of oil is (you have guessed it) prohibitively expensive. So where will all of this end?
World wide recession?
Great hub
Thanks sixtyorso. Personally I believe most of the price increase is due to market manipulation with the express intent of driving smaller companies out of business and forcing more people into poverty. That's just MHO.






Chef Jeff says:
3 months ago
I have to laugh at those who say that because they don't own a car they are not affected by the fuel prices going up. I guess they are completely self-sufficient and never have to go to the store for anything.
Over the past two weeks I passed by the local gas stations every day of the week, week-ends too, and each day the price had gone up from the previous day. EVERY DAY!
And our government sits there handing out checks that we are supposed to use to buy more goods. Mine will go to higher property taxes to be paid on a house that I will probably not own come October because I have lost my job at school due to lower property taxes collected because houses are being foreclosed upon because people have lost their jobs because fuel prices are too high.
I would really LOVE to see our government officials spend a month living in a cardboard box beneath a highway bridge, begging for food and scrounging in the garbage cans for old clothing and tossed off shoes.
Maybe THEN they would get at least some idea of what is happening in this country! Is it the Great Depression all over again?
Pundits argue that it takes two quarters of negative economic growth, or some crap like that, to mark a recession. Yeah, sure - tell that to the rest of us, you over-paid idiots!