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Posted by MoparNorm on Friday, February 22, 2008 at 19:30:43 :
In Reply to: Re: What is your limit? posted by JerryinIdaho on Friday, February 22, 2008 at 15:00:31 :
The one true law of economics is supply and demand. However, regulatory interference and political pressure, typically mess with that law.
More engine types run on diesel or diesel derivatives than any other fuel, trains, planes, ships, trucks, power plants, heating oil, etc.
However, since the public would not tolerate fuel shortages, most refining is for the voters fuel of choice, gasoline.
Because diesel makes environmental and economic sense, more and more people are switching to diesel and placing more pressure upon the refining capacity.
As more people switch, more capacity will be given over to diesel and hopefully supply will catch up with demand.
Additionally, diesel fuel is now encumbered with many pollution fighting additives, which raises the cost.
The majority of diesel users is still businesses and they have a greater ability to pay higher prices than the average consumer, so there is less complaining or pressure to bear upon the politicians and refiners. If 80% of the voters used diesel, that might change.