Pond Boss Forums GENERAL QUESTIONS Pond Boss $2.96 Gas...

Hmmmm, when I turn in the gallons of fuel used for agricultural use (tax refund), they never have said that there is more tax on diesel than gasoline. I get equal back on whatever I use. This must be a tax that is added before they add on a road tax?

It looks like Ohio taxes diesel and gas the same.
http://www.tax.ohio.gov/excise/motor_fuel/tax_rates.aspx

If you want to see how the taxes vary between states for gas and diesel, there's links to interactive maps on here:

http://www.api.org/oil-and-natural-gas-overview/industry-economics/fuel-taxes

I think the Guberments (state and fed) will be thinking of slipping in more gas tax hikes while fuel prices are low and most likely going lower in the near future. I am sure they will try

Thanks Esshup, but then why is diesel more expensive? That chart shows federal tax is 6 cents more on gas than diesel, state tax is equal. Is the tax Rex referring to part of the manufacturing cost and they try to keep it hushed?

I believe part is a hidden EPA mandated tax (surcharge/fee?) on producers/crude suppliers to reduce soot emission. Part of what made the price spike was also the EPA mandate to reduce sulfer content which requires more refining.

Here is an excerpt from the U.S. Energy Information Administration...



Why has diesel fuel been more expensive than gasoline?

On-highway diesel fuel prices have been higher than regular gasoline prices almost continuously since September 2004, a break from the historical pattern of diesel fuel prices usually being lower than gasoline prices except in cold winters when demand for heating oil pushed diesel fuel prices higher. The main reasons why diesel fuel prices have been higher than gasoline prices in recent years are:
� High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China, India, and the United States, and a tight global refining capacity available to meet demand during the period of high economic growth from 2002 to mid-2008.
� The transition to less polluting, lower-sulfur diesel fuels in the United States affected diesel fuel production and distribution costs.
� The Federal excise tax for on-highway diesel fuel of 24.4 cents/gallon is 6 cents per gallon higher the gasoline tax.

Personally? I think there is a higher profit margin on diesel than on gasoline. It doesn't have to be refined as much as gasoline, so there should be less mfg. costs into it per gallon.

But, there is less diesel in a barrel of crude than gasoline.

At least that's my understanding.

Looks like it may hover around the buck 80 range for a while. It's not moving much, but that's a heck of a lot better than 3 bucks or more.

$1.67 this morning. Highest price in MI has been holding steady at $3.39 thru all of this. I won't mention the stations name

Diesel isn't dropping as fast, but it's coming down.

I read that MO was the first state to average under $2/gal of regular.

I paid $2.89 for diesel at the Shell station east of Livingston, TX this past week...cheapest I paid for diesel, so far. Not sure how long this will last. The Saudi's and Arabs (OPEC) are intent on breaking the Russian's backs financially like Reagan did back in 86'....Russia's lifting cost profits are based on $80-100 a barrel crude. With OPEC flooding the market, its killing the soviets financially.....until something changes in the political world, enjoy the lower prices. It WILL change...
Charlie

Scott, Marathon in Grovertown (10780 US-30 E near N 1100 E)
is $2.89 for diesel. Still $3.19 in GH.

Ummm, well, I sold a storage tank I built to a buddy because diesel prices were so high

Yep. I filled up there this evening. 15.23 gallons cost $45.67.

Only got 39 mpg this tank. Towing a big boxy 900# leaf blower on a 700# trailer, winter fuel and snow tires on all 4 corners.

I wonder what the China influence is in this political game. I just read somewhere they buy the vast majority of their oil.

Bill,
Other than a consumer, China should not pose as an influence as oil prices are set globally by supply and demand through OPEC. China gets its crude oil cheaper due to OPEC refusing to curtail their supply, therefore producing a glut which drives the global price down. China can buy from any oil producing nation that will sell to them.
Charlie

Hey Charlie,

I was thinking about it a little differently. Admittedly, way out there thinking but Pat W. has me on a Falstaff diet.... China is quickly becoming the world's banker. A lot of countries owe them money. So the banker says I want cheaper oil or no more loans. So the countries that sell food, goods and services to OPEC, as they have none, tell them prices are going up unless the price of oil comes down.

Bill

What did I do? Falstaff? If it was up to me there wouldn't be anything sold in our country from China

Pat

Esshup you got how many MPGs? 39? What do you drive that gets that kind of mileage?

Bill,
I follow your train of thought...but for decades, OPEC has been the dog. And as you well know, the tail doesn't wag the dog...the dog wags the tail. With that said, China may be the next dog...who knows. Cheaper crude prices are to China's advantage. Russia is the one struggling to sell their crude at a reduced price because their lifting costs are set at a much higher margin.

They aren't farming out Falstaff to China now, are they???

I think Pat thinks it comes from China. That's ok. I just wish he would could throwing the empties in the pond!


Falstaff bottles are not PB approved habitat or structure Pat!

Tube jig slow under a cork my friend!

Most things Nowadays do come from China andas crappy as Falstaff is it prolly is made in China and a reef of bottles might make a good hidey hole for fish


Pat

Pat, re: mileage.

That 39 mpg is uncharactistically poor mileage for me. In the winter I usually get in the low to mid 40 mpg range. During the warmer months (April thru early November) when I don't have snow tires on all 4 corners and don't burn winterized fuel, and get around 50 mpg. I've gotten as good as 64 mpg when I watch my right foot - done that for two tanks back to back, but it takes some concentration to press gently on the go pedal. Here to Dallas or here to Washington DC without stopping for fuel is possible.

I can tow up to around 3,500# gross, but like to keep it under 2,000# for less wear and tear.

No hybrid for me, it's a VW TDI Wagon. I have done some modifications to it, more for performance than for MPG, but the mpg did increase a tad vs. stock, about 4 mpg over stock.

Reflashed the computer (Rocketchip III), added larger injectors and changed some of the intercooler piping. That increased the hp and torque from 90/155 to 130/300. I didn't like the way the car stopped with 3 guys in it, hunting gear and a small (<1,000# gross) trailer, so I changed the brakes to larger brakes from an Audi TT Roadster (both front and rears). I changed 5th gear ratio to lose about 400 rpm on the highway and at the same time I added a Peloquin torque sensing differential. Then because of the brakes I had to go to 16" rims. There are more modifications done, but those are the biggies that pertain to mileage.

I use it for the majority of my driving where I don't need to tow something heavy, or go off-road. There's only about 4.5" of ground clearance, so even driving on some construction sites is an iffy propositon - I'll take the truck then.

Thanks Esshup
For some reason I was thinking full size truck, now that would be good mileage! Boy that keeps the fuel bill down.



Pat W

Well, the $1.66/gal gas didn't last long (one was at $1.62 for a short time) Lowest prices were this morning.

By noon, almost every station jumped at least $0.19, and it's still going up. One near the shop jumped $0.23 in one leap.

One report I read today said they expect oil prices to bottom out in the next few days, because it economically can't go any lower.

My truck's been in the shop for the past few days, so it never did get to taste the cheap gas.

Still, if our oil production can at least keep things moderate...

I'll bet oil speculators lost a ton of money. OTOH if you know it will go back up now would be the time to buy oil stocks.

I wouldn't buy any oil stocks just yet. I have worked in 2 different oil companies, know how to value an oil company and have too much formal education in financial analysis.

So, about 3 or 4 weeks ago, actually about 2 days before the Saudi's made their announcement, I bought 500 shares of a small Texas based oil/gas company for about $20 per share. All the numbers and financial ratios looked very positive and were a good buy out candidate. It had BUY ratings from a lot of Market Analysts was fairly valued and I couldn't find very many negatives. Then the Arabs took their direct shot at reducing competition from Russia, South America, the Keystone Pipeline and others. I hadn't figured on the geopolitical forces. Heck, nobody did. Within 2 days it was selling for $7.00 per share. It is now back up to $9.50 per share. Yessir, I'm sure an astute investor.

I'm watching for an entry point on a couple of others but my belief in myself as a whizeroo has been pretty well rocked.

My Wife said something the other day about being glad that I had gotten out of all the oil stocks that I had. I reluctantly admitted my mistake to her. I got "the look". I'm sure those of you who are married understand "the look".