Why Is Diesel More Expensive Than Regular Gas? [View article]
The market distorts this diesel/gasoline question by the way fuels are priced and taxed: by the gallon (or litre in Europe). By volume, diesel gets more mileage because it is heavier and has more energy. Once you commit to pricing by volume - but only then, diesel gets better mileage. This is compounded when there is heavy taxation by volume, as in Europe. This leads European drivers to prefer diesel since the taxes are then spread over more miles.
Next, refinery limitations come into play. Since the U.S. taxes less, US drivers prefer diesel less than Europeans. Refinery runs typically produce both diesel and gasoline; so diesel is shipped to Europe and gasoline to the U.S, In the latter case, it is ofter European refiners who ship gasoline to the U.S.
So I think the "let's dieselize" adhderents are not fully informed.
-
The market distorts this diesel/gasoline question by the way fuels are priced and taxed: by the gallon (or litre in Europe). By volume, diesel gets more mileage because it is heavier and has more energy. Once you commit to pricing by volume - but only then, diesel gets better mileage. This is compounded when there is heavy taxation by volume, as in Europe. This leads European drivers to prefer diesel since the taxes are then spread over more miles.
Mar 14 11:33 am
|Rating:
0
0
All Comments by RossA »Why Is Diesel More Expensive Than Regular Gas? [View article]
Next, refinery limitations come into play. Since the U.S. taxes less, US drivers prefer diesel less than Europeans. Refinery runs typically produce both diesel and gasoline; so diesel is shipped to Europe and gasoline to the U.S, In the latter case, it is ofter European refiners who ship gasoline to the U.S.
So I think the "let's dieselize" adhderents are not fully informed.