Diesel Is Only 6% Cheaper Than Gas, Would You Still Consider Buying Diesel Vehicle?

**glenngj** · August 2nd, 2008 01:56 PM

mukhang papantay na ang presyo ng diesel sa gas, yung flying v nag increase sila ng presyo ng diesel tapos nagbaba sila ng presyo ng gasoline..

**mbeige** · August 2nd, 2008 02:00 PM

I don't understand why diesel is costing much more than gasoline, kasi diesel is a by-product of gasoline manufacturing processes so it should be cheaper to produce. Lalo na dyan, where diesel is not as "clean" as in other countries.

**pup2** · August 2nd, 2008 05:56 PM

Originally Posted by mbeige

I don't understand why diesel is costing much more than gasoline, kasi diesel is a by-product of gasoline manufacturing processes so it should be cheaper to produce. Lalo na dyan, where diesel is not as "clean" as in other countries.

An 'official' explanation I've read is that diesel is used by industry kaya mataas ang demand for diesel. So methinks supply & demand ang nagda drive sa presyo -- hindi costs -- kaya nga record high ang profits ng oil companies.

Parang ginamit nila ang higher cost nila in getting oil as an excuse to raise prices beyond what their margins used to be and the price is being driven even higher by speculators because oil demand is pretty inelastic.

The best reaction is to make demand more elastic. It's hard pero I believe the higher the price the more elastic the demand becomes because you can afford it less. Which, I believe, is why poorer countries react faster to high fuel costs than rich countries do. Kailangan eh.

**webmiester** · August 18th, 2008 06:24 PM

Surprise, Surprise!!!

E10 gasoline is now cheaper than diesel!

E10 gasoline at Shell: P55.07

Diesel: P55.57

So its no longer diesel is 6% cheaper, diesel is now more expensive...

However, diesel is noted to have higher fuel economy so it's still worth it... but you will need more frequent oil changes...

**CVT** · August 19th, 2008 07:49 AM

Originally Posted by webmiester

Surprise, Surprise!!!

E10 gasoline is now cheaper than diesel!

E10 gasoline at Shell: P55.07

Diesel: P55.57

So its no longer diesel is 6% cheaper, diesel is now more expensive...

However, diesel is noted to have higher fuel economy so it's still worth it... but you will need more frequent oil changes...

Ngek! Oh wow,- so assuming a gasoline-fed vehicle uses E10 all the time, then, it will indeed take a very long time for a buyer of a diesel-fed vehicle to "recover" the price difference of his vehicle....

6610:secret:

**tidus1203** · August 19th, 2008 08:37 AM

And if his mileage is low he might not recover it at all before he decides to sell the vehicle in 8-10 years time.

**Monseratto** · August 19th, 2008 05:53 PM

Presently, unleaded gas cost only 90 cents more than diesel. I wonder if there'll be another rollback to cut that to a mere 50 cents...

**nameless411** · August 20th, 2008 02:31 PM

oil companies are trying to maximize their profits on ALL fronts. when they noticed more poeple buying diesel engined vehicles, they moved to increase their prices

diesel and gasoline are both manufactured in the same process, both are condensed along the same condensation chamber, the more volatile gasoline condenses in the upper chambers while the diesel condenses in the lower chamber....i believe mas intensive ang refining process sa gasoline (it has to undergo several processes pa after condensation as compared to diesel). thats why diesel is cheaper.

but lo and behold, kawawa naman ang mga higanteng oil companies,
baka magkalugi lugi sila...
>wala nang pang sustento sa SUPER perks ng top execs and employees nila - >wala nang pang sustento sa outmoded operations (since there is no incentive >to improve efficiency - take meralco for example - there are SIX supervisors per employee - susmaryosep!)

**tidus1203** · August 20th, 2008 03:37 PM

Just in case you don't know. I know since I trade commodities. A barrel of diesel is more expensive than a barrel of gasoline by around $17. The fact that diesel is cheaper than gasoline is still a mystery to me. Its all about the demand. Mas mura nga mag refine ng disel eh kung mataas ang demand taas din ang presyo.

**nameless411** · August 22nd, 2008 02:05 AM

just in case you dont know, if its cheaper to make diesel, and because of the increased demand, oil companies have decided to increase diesel prices, then their PROFITS must be going through the roof by now.

so why are they teary eyed, still claiming "under recovery! under recovery!!!"

what?!?!?! only P.50 rollback? WHY???? what happened to the other P8 that they charged us?

when oil prices were at USD 112, BUMABA ba ang prices? NO! will we most likely benefit from the days when oil was at the USD 112 level quite recently? NO!

so you see, it will be pointless to "moderate their greed" so to speak

are there any hack mechanics / gearheads in this blog who would like to meet up and come up with solutions to help diminish our dependence on oil? perhaps we can come up with something like the brazilian model ? (of course i am talking about the fuel infrastructure in brazil, and not those good looking girls)?