WHY The Mysterious DROP In Diesel Gas Prices In California And Other States?

If you've been a fan of diesel cars and trucks for a while you can rememberthe good old days when diesel gas was LESS than regular at most places.

Well ladies and gentlemen the good old days are back in California and many other locations in the nation.

And honestly, we have NO clue WHY.

It's the summer driving season.

Prices usually go UP in the summer.

And just a few short months ago and for the last few years diesel was MORE expensive than PREMIUM!

For your reference, since I have followed this closely, diesel was LESS than regular until about two months AFTER the Germans announced they were bringing diesels back to the USA as well as developing clean diesel engines.

Then prices started to rise until they actually became higher than premium gas prices in most parts of the country.

Especially, California.

Do the research, it's kind of eerie.

So WHY all of a sudden with many manufacturers offering diesel options has it magically dropped so far in price?

Conspiracy theory or just coincidence?

Spies, discuss...

quizz - 6/24/2012 11:51:10 PM

+3 Boost

The dynamics of oil prices are not transparent. All guesses - pointless to discuss because nobody has a clue, and the oil industry likes to keep it that way. hmmmmmm

Agent001 - 6/25/2012 1:00:35 AM

+1 Boost

But what makes this interesting is that regular is never more than premium but diesel was and now it's back where it was BELOW regular.

Strange.

001

bfghemicuda - 6/25/2012 11:34:01 AM

+7 Boost

I am a native Californian and California has transformed into a true Nanny State. Arnold was terrible and should be regestered as a Democrat. There is no money for school busses but our current Govener Brown passes a bill to give money to Illegals for free College??. Our roads are terrible and the Dems have successfully ran most Businesses out of the state which means less revenue. I have been a General Contractor for over 30 years and my industry has been over regulated to the point where its $200 a square foot for a room addition that no one will pay. The Dems keep screeming for more money to ballance the budget like someone else overspent and they are trying to fix it. There logic is that the Rich don't pay there fare share. What a load of crap!!! California is a true mess and its sad to see. But it seems some think this is progress?

sdcarguy - 6/25/2012 1:41:55 AM

+2 Boost

Here is my theory:

Summer driving season is mainly driven by consumers with their mostly gasoline cars.

Diesel fuel, especially in California, is mainly driven by commercial vehicles.

So, as the price of oil has come down, both gasoline and diesel refined products came down, BUT, since there is relative increased demand for gasoline due to the summer driving season, gasoline did not come down as much.

So thats why diesel could be cheaper now.

investor27 - 6/25/2012 2:56:55 AM

+5 Boost

Not here in the Midwest, where diesel is 25 cents more than regular.

atc98092 - 6/25/2012 8:33:41 AM

+2 Boost

Same thing has happened in Washington state. I can't remember diesel below regular since sometime back in the mid-2000s. Always thought it was bogus pricing. Nice seeing it back where it belongs.

wileyz - 6/25/2012 9:17:51 AM

-3 Boost

The oil companies have been tied to the hip of US car manufacturers for decades. Diesel fuel costs went up after all the German clean diesel announcement because the US had no competitor for the sector.

By raising prices, the oil companies protected the middle class buyer until US automobile manufacturers could catch up and took advantage of the fact that premium car buyers were used to paying higher fuel costs anyway.

Just my two cents...

skytop - 6/25/2012 6:32:41 PM

-1 Boost

Chris Matthews and Ed Shultz reported on their cable shows that Pres. Obama made a clandestined deal to steeply reduce oil prices leading up to the U.S. election. Afterwards, prices will spike back to their highest levels.