The Mudcat Café TM
Thread #42919   Message #625256
Posted By: GUEST
10-Jan-02 - 05:58 PM
Thread Name: BS: price of gasoline
Subject: RE: BS: price of gasoline
I have no oar in the argument that US gas prices are artificially manipulated for obscene profit, so I'll let that one lie for now. What HAS been happening in the US recently is unusually warm temperatures during the early part of our winter, reducing the demand on home heating fuel. Supply and demand having their own effects on the market, this means that there is more petroleum available to be refined into gasoline, as the demand for hearing fuel has temporarily waned.

As temperatures have dropped, more healing oil is being used, leaving less pertoleum for gasoline and gas prices have risen.

The other factor in auto fuel prices is federal and local taxes. By and large, the difference in price between diesel fuel and #2 home heating oil is the various highway taxes levied on the diesel fuel, and of course, the additives introduced to keep it from gelling in low temperatures - like the fuel line between the tank and the injectors, on a 0º F, -18º C day. In some areas where the state tax is prohibitive, some folks have been known to pump home heating oil out of their heating tanks and introduce it into their cars to save some money. This practice is frowned upon by taxation authorities, and requires additional deceptive practices.

That having been said, here in NH where highway tax on diesel fuel (for private individuals - I can't speak for long haul truckers) is taken care of by a flat tax paid to the state, rather than an extra charge at the pump, there is still a difference between diesel and #2 fuel oil on most days, which probably has to do with federal taxes.

Dave