[JohnnyD]

Originally Posted by buckman

Not to mention that a diesel can last several hundred thousand miles more. Thus justifing the added initial cost. I have yet to hear a reasonable explanation as to why diesel fuel is more then gas. Prior to 2003 it was cheaper.

I've read a few articles that include Fishparts reasoning but also with others. Now, I don't know nearly enough on how the supply of fuel works but this is what I've read.

Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.

http://seekingalpha.com/article/6846...an-regular-gas


And my personal favorite:

In the end, the best explanation may be, as William of Ockham believed, the simplest one. Perhaps diesel prices have gone high and stayed there because that's what the market will bear. In that older article, we asked a petroleum industry insider why oil companies were charging so much for diesel. The insider's telling reply:

"Because we can."

http://blogs.edmunds.com/strategies/...-than-gas.html