If $3.62 Gasoline Has You Pinched, Consider $4.25 Diesel - CNN/Money

NEW YORK (CNNMoney.com) -- Rising diesel prices have slammed the trucking industry and hurt independent truck drivers, and Congress is looking for solutions.

Members of the House Committee on Transportation and Infrastructure on Tuesday took up the rising diesel prices issue that has hampered the trucking industry. "People are losing their trucks and losing their business," said Rep. Peter DeFazio, D-Ore. "But there are some places where an appropriate action by Congress might mitigate these problems."

The cost of diesel has risen 26% since the beginning of this year, compared to an 18% increase in the price of regular gas. The national average price for diesel reached a record high of $4.25 a gallon on May 1, while gasoline reached a record $3.62 a gallon, according to AAA.

Rising diesel costs have dug into the profits of the trucking industry, whose trucks run on the fuel. The American Trucking Association predicted that truckers will have to shell out $140 billion for diesel in 2008, sharply higher than the $112 billion they spent in 2007.

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http://money.cnn.com/2008/05/06/news/economy/house_hearing_diesel/index.htm

The question is -- what do we do in the interim?

Most trains in Europe are electric. So are ours, around New York City.

is the "cost per mile" cheaper?

. . . than gasoline engines. Since the "premium" on Diesel fuel in the story is 4.25/3.62, or about 17%, they're still a good deal (your mileage may vary). But as the owner of a Diesel car, I sure liked things a lot better last summer when the situation was reversed w.r.t. Diesel vs. gasoline prices.

for example, my VW averages 30/gal for most of my driving. The same car, sold in Europe with a diesel gets about 55/gal. So an increase in price of about 36% equals an increase in mileage of about 50%. Seems worth it to me.

Another example: A 500cc motorcycle gets about 40-45 mpg. A diesel cycle of the same size would get between 40%-50% better mileage.

I'd pay the higher price for diesel in a second for the better mileage. Truckers, on the other hand, are looking at $1000+/fill-up but carrier fees haven't gone up to match.

Sounds like the economics favor it. I had a diesel VW Rabbit many years ago that got terrific mileage. Not all gas stations sold diesel, but that wasn't an issue.

1) it burned dirtier than gasoline and belched particulate matter into the atmosphere (this issue has improved measurably since the early 80s)

2) diesel engines of yore hated cold starts, and that made them a pain in the ass in many parts of the U.S. (and, I'm told, explains why truckers kept their rigs on at rest-stops while sleeping). Many were equipped with glow bulbs to 'warm' them a bit before starts. My uncle kept one of those mechanics lights - the ones with a 100W bulb cages in a thing that looked like a small jai alai racket) planted on his engine winter night. Again, not so much an issue anymore.


I am desperate to get a diesel bike. i just think it would be awesome, and I could get 100+mpg on something like a 350. Unfortunately they still cannot be had for love or money on the states. There is a company manufacturing them for the military...

Especially the cold starts.

Current diesels are cleaner, quieter and more powerful. I would think there would be a bigger market here in the US but I guess not. I believe more than half of new vehicles sold in Europe are diesel.

Oh well...

I'm guessing without googling that they are starting to make more and more of it from natural gas and natural gas liquids. That would explain much of this.

are able to charge a fuel surcharge.. Now for independents and some companies that charge is not paid until goods are delivered but still we as consumers are paying for that in the way of high grocery prices and nearly all other consumer goods...So while the truckers are struggling with the hgh costs of fuel at least some of that expense is recovered within the freight bill