Steve H wrote on 10/22/14 at 17:44:56:Gas is going down. It was $2.599 here the other day.
Hope it keeps this up. Now I wish Kerosene would follow suit. It's $4.59 here.
How can kerosene be twice the price of gasoline...
...when you need to refine ( = distill) kerosene/diesel in order to obtain gasoline ?
It's like selling wine half price compared to grapes...
...or french fries half price compared to fresh potatoes...
It just doesn't make any sense...
Here's the process:
Follow the flow of crude oil, you will see the final products are naphta, light gas oil, heavy gas oil and (solid) residue.
The point is naphta here is actually the light tar and pitch agglomerates that will float (the substance used to tar roads), "gas oil" is also known as "gasolio" or "diesel fuel".
In other words, combustible oils which all require detonation - diesel engines of all sorts.
You need to put those oils into a second process to obtain more tar&pitch, heavy residue and gasoline.
In other words, the Big Oil system is cheating. Here in Europe diesel is always cheaper than gasoline. In the 1970's diesel was 1/3rd the price of gasoline.
These days pump prices have leveled because of all the crazy taxes, but there is still about 10% difference.
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