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 - Engine Valves - Some Helpful Information - by Staff. Intake - On the intake stroke the piston moves doward, sucking in carburized fuel through the open intake valve. Exhaust valve is closed. Compression - With both the intake and exhaust valves closed, the pistons upward stroke compresses or squeezes the fuel into the combustion chamber. Firing - Ignited by the spark, the compressed fuel explodes and forces the piston downward on its power stroke. Intake and exhaust valves are closed. Exhaust valves and seats are exp
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