It's all a move to drive down demand. The gov't and the analysts say as much when they allow that prices are expected to drop in May due to falling demand.
It's their only choice right now. We have no more refinery capacity to deal with increased demand. It's been 20+ years since a new refinery was built in this country because no one wants one next door, and the existing refineries have only been able to manage incremental increases in capacity.
Yes, diesel should be cheaper. It takes less crude to make a gallon of diesel. And there is a limit to how much gas they can get on a first run out of crude. But they "crack" diesel and other heavy distillates to make more gas. The last thing they want is gas lines.
The price is only loosely linked to the cost of production. The supply and demand curves are what are driving the relative prices of gas and diesel. As for the rising cost of either, you have demand, the falling dollar used to buy the crude . . .the list goes on.
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Today's Featured Article - The Revival of a John Deere Combine - by The Red, John Fritz. For several years I had been driving by a farm house on the west side of Indianapolis that had a John Deere combine parked in high weeds in a lot behind the house. The gentleman no longer farmed because the entire area was developed with housing and light industry. I had stopped several times and knocked on the door but no one would answer. My curiosity was up and I wanted to contact the owner. I wanted to see what he planned to do with the combine.
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