Re: gas and fuel costs

From: Sonny Heath (sonny@defuniak.com)
Date: Sat Nov 19 2005 - 06:04:36 PST


How can you say "the cost is being passed on to the trucking industry"
when, in fact, trucking companies are somehow getting as much as a dollar a
gallon discount on diesel fuel? I see advertisements and hear on satelite
radio all the time saying they will give $1.21 etc a gallon rebate if owner
operators will come haul for them?

I don't understand it. You haven't heard one iota from truckers complaining
about the cost of fuel yet diesel prices on the boards are twice what they
were a short time ago.

Sonny

----- Original Message -----
From: "JTravis" <dagobert@ix.netcom.com>
To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
Sent: Friday, November 18, 2005 9:37 PM
Subject: Re: [MV] gas and fuel costs

>I think you're half-right; the gasoline prices are coming back down to try
>and assuage automobile drivers, and the cost is still being passed onto the
>trucking industry in an attempt by the oil companies to play the "We cheat
>the others and pass the savings on to you!" game. But the fact is that
>those usuary prices are still being paid by all consumers, just not at the
>pump. But if shipping costs go through the roof, then either the truckers
>will have to pass on the costs all through the economy by raising prices
>and inflation, or worse yet, they will simply decide not to work for just
>the cost of fuel and will start parking their rigs and walking away in mass
>protests, which could also collapse the economy. Normally, I'm for the
>principle of free trade, but in this case they have a monopoly by virtue of
>government regulated infrastructure and as such, there is an argument that
>can be made for either price controls or at the very least, giving the
>industry a clear incentive to develop new refining capacities that would
>return prices to reasonable levels, or enable new domestic competition to
>enter the market that would build the capacity outside of the existing
>industry.
>
> Kirk Thompson wrote:
>
>> Technically:
>> The way I understand it is simply supply and demand.
>>
>> Fuel oil, Diesel, and kerosine (listed in order from lower grade to
>> higher) are actually by-products of the different stages of the molecule
>> cracking process that makes gasoline. These fuel oils are actually not
>> intentionally made. Gasoline is what is desired to be made in the
>> refining process and since diesel is really just a by-product, when there
>> is a strong demand (more vehicles using diesel) and there is not a large
>> supply (because if there is plenty of gasoline, you don't need to make
>> more and therefore no more diesel is made), it drives the cost up.
>>

>> Personally:
>> I think we are getting screwed by Big Oil. Record profits for the last
>> 10+ years and 2005 being the best in history.
>>

>> Anyone, please correct any mis-statements or dis-information.
>>
>> BTW, 2 weeks ago it shot up to $3.66 in Los Alamos area in NM and has now
>> settled at $3.09-$3.17. Like I heard myself say last week.."Wow, $3.15 a
>> gallon. That's a good deal!" I think I have been de-sensitized so
>> ~$3.00/gal. actually looks good.
>>
>> I am earnestly looking into the self-manufacture of biofuels...
>>
>> -K
>>
>> At 08:48 AM 11/17/2005, MV wrote:
>>
>>> $2.09 in Elkhart, IN the other day. Diesel is still $2.55 and up.
>>>
>>> Anyone hear a rational reason why diesel is still so expensive? It has
>>> never been like this before in my memory. I'm starting to think the
>>> consumers (gas users) are being "helped" by big oil so they don't raise
>>> the ire of the congress further, while the truckers are getting screwed.
>>>
>>> Dave
>>>
>>> mark baxter wrote:
>>>
>>>> Sent: Wen, November 16, 2005
>>>> Subject: [MV] gas and fuel costs
>>>>
>>>> For what it's worth gas is 2.37 - 2.55 here and Diesel is 2.87 a
>>>> gallon in Raton NM. (the further south you go on I-25 the cheaper it
>>>> gets too)
>>>> Mark M-886
>>>>
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>>>
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>>
>>
>>
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>>
>
>
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