Quote:
Quote:
Here's a weird thing. When I was a kid, gas was 50 cents a gallon and my grandma used to buy kerosene for 18 cents a gallon. Now, gas is 3.20 a gallon and kerosene is 3.60! I have always been told that kero is way cheaper to produce than gas. When did kerosene go crazy? When the new, efficient kerosene heaters became all the rage 15 years ago. Tell me that somebody isn't making a huge profit margin on kerosene, considering the aforementioned history!
Kerosene, jet fuel and diesel are all pretty much the same thing so what affects the price of one will affect the price of the others. High oil prices, demand, reduced refinery capacities and distribution disruptions will raise the price of all of them. As an aside, here in Iowa there has been a substantial reduction in the amount of gasoline sold so the legislature is talking about a gas tax increase to make up the difference. Gee, thanks!
I think that the increase of diesel powered vehicles has had a direct effect on the price of fuel. And not just the demand aspect. The supply side is not able to keep up yet. As Larry mentioned; jet fuel, kerosene, heating oil are all very similar so production of diesel may sometimes take a back seat. Kerosene may have the same fate, as demand (or supply) goes down, price goes up.
With diesel fuel, the taxes used to be paid by the main users-truckers through a different system so the tax wasn't included in the pump price. Back then if you had a diesel vehicle you paid very little for fuel and avoided the fuel tax. I worked at a shop in the mid '70s that did diesel conversions on pickup trucks, pretty cool stuff; a 3-71 or 4-71 Detroit in a one ton pickup with a Road Ranger .
As another note to price, gasoline costs roughly ten times what it did 25 years ago. I make quite a bit more than ten times what my dad made in 1973. Now I know that's not a very accurate guide to inflation, but it seems that gasoline is in the ballpark with everything else.
Contra todo mal, mezcal; contra todo bien, tambiƩn
|