Volkswagen: 30 percent of U.S. sales to be diesel by 2018

I find it hard to believe with the $.30 to $.40 price premium over high octane unleaded.

— djrickp (View Profile)

Posted on 5/20/2008 3:11:35 PM | reply to this comment | Votes: 3   

Do the math... Even at that premium, diesel makes 'cents'.

Diesel has 30% more energy per gallon than gasoline, and thus about 30% better gas mileage.

SO.. at $4.00 a gallon the price for Diesel would have to be $5.20 to EQUAL to gasoline.

At $.40 it is only a 10% cost for a 30% benefit.

— jgf330xi (View Profile)

Posted on 5/20/2008 3:26:47 PM | reply to this comment | Votes: 0   

I agree by 2018 gas will be $12 per galon reg and $18 per galon for Diesel.

— 1000rrRider (View Profile)

Posted on 5/20/2008 3:27:33 PM | reply to this comment | Votes: 2   

Sounds like a great plan for VW.

VW is #1.

— EL34 (View Profile)

Posted on 5/20/2008 3:52:53 PM | reply to this comment | Votes: -1   

Some have a short memory. It's not for certain that diesel fuel will keep this $.70 premium on regular unleaded for the unforseeable future. Last spring and summer diesel fuel remained $.30 below the price of regular unleaded, and everyone pretended as though that's the way it had always been, but that was not the norm. Now diesel fuel has been much higher for three months, and everyone pretends that's the way it has always been; it has not!

One has to take in the long term price premium when deciding on a diesel. The high price premium now will almost certainly change over time. The price differential between the two fuels is always changing and it always will. The current premium for diesel fuel is a record premium for the U.S. It is highly likely that it will remain this way, because too much profit can be made right now on diesel fuel. Virtually no profit is being made on gasoline. Market forces will eventually bring down the price of diesel versus gasoline because refiners will figure out a way to produce more diesel fuel in order to make more money.

— gregsfc (View Profile)

Posted on 5/24/2008 5:04:55 PM | reply to this comment | Votes: 1   

All these folks making comments about "they" or the "big oil companies" raising the price of diesel fuel is ridiculous. You guys must have been asleep during Econ 101.

Exxon Mobil is the world's largest private oil company but is the thirteenth largest oil company when including state-run oil companies. The amount of oil produced by Exxon is a drop in the bucket compared to Saudi Arabia's state-run company. No one is pricing oil! The market is pricing crude oil with OPEC having the most affect on that price by limiting output but even they have limited control on a global commodity.

The market is telling consumers to use less. So use less or pay the price or vote for a democrat and we'll socialize petroleum fuels. We can each then get 5 gallons per week, per family. We won't have enough to get to work and back each week, but it'll be cheaper.

— gregsfc (View Profile)

Posted on 5/24/2008 5:17:32 PM | reply to this comment | Votes: 1