[RahulNagaraj]

According to media reports, the national average price for a gallon of diesel in the USA is at an all-time high of US$ 5.51. Reports suggest that the price of diesel has been increasing steadily every day. The overall price has increased by a massive US$ 2.41 since last year.



Diesel prices have also overtaken that of petrol (gasoline), which now stand at US$ 4.28 / gallon (Rs 87.5 / litre). However, prices of petrol have also been increasing steadily and are now said to be just 6 cents away from breaking the record set on March 11.

While there are many reasons for the rising fuel prices, one of the most important is the Russian war on Ukraine. Amidst the invasion, the gas market is said to be going into a frenzy, with countries ensuring they have enough energy resources. Also, with fewer exports going out of Russia - the world's largest exporter of crude oil and natural gas, countries in Europe are looking elsewhere to secure supplies.

Another reason for the surging prices in the USA is the weather. Reports suggest that the weather is hotter than normal in many parts of the country, forcing the use of power generators, which run on gas to produce electricity.

Source: Jalopnik

Link to Team-BHP news

[14000rpm]

Diesel is already slightly higher than Petrol in Finland.
Prices as of today:
95 Petrol - 182 INR/litre
98 petrol - 189 INR/litre
Diesel - 184 INR / litre

..as of last month

[condor]

Diesel in USA has been more expensive than petrol. Have seen this 20+ yrs back. May have dipped in between, So what's new now ?

[SS-Traveller]

Originally Posted by RahulNagaraj

...petrol (gasoline), which now stand at US$ 4.28 / gallon (Rs 87.5 / litre).

Different countries, different perspectives. Many countries around the world have diesel costing more than petrol. A lot is explained in this document:
Facts about Diesel Prices and the Australian Fuel Market.pdf

[narayans80]

First rule of thumb, no conversion business. You earn in USD, you pay in USD.

In the USA, diesel is hardly a passenger vehicle fuel. So the picture is totally misleading.

That said, diesel was always been expensive than petrol in the developed world. I've lived a few years in diesel loving Italy, diesel has always been 10 cents expensive than petrol. They were atleast 1.5 times the retail price in Madras at that time.

[saket77]

I don’t think currency value conversion is a proper benchmark to compare the prices of any commodity of two different countries unless one will be earning in one and paying in the other country. If one is earning and paying in the same country, then such a comparison is not relevant.

[tmtitash12]

Originally Posted by RahulNagaraj

Another reason for the surging prices in the USA is the weather. Reports suggest that the weather is hotter than normal in many parts of the country, forcing the use of power generators, which run on gas to produce electricity.

Source: Jalopnik

Link to Team-BHP news

Wow, the increasing heat forcing them to run more generators, and burning more fossil fuel and increasing the heat further. Looks like we are caught in a vicious cycle of getting us closer to our doom.

[GTO]

Diesel has always been the "commercial vehicle" fuel in USA. Some inroads were being made since the mid-2000s, and a few people did become fans of turbo-diesels. But the VW emissions fraud put water all over that. Diesel will never, ever find popularity among passenger cars in USA again.

Heck, it's also going out of fashion in India, Europe and other countries.

[avk]

Originally Posted by RahulNagaraj

According to media reports, the national average price for a gallon of diesel in the USA is at an all-time high of US$ 5.51. ........petrol (gasoline), which now stand at US$ 4.28 / gallon (Rs 87.5 / litre).

Converting the cost in USD directly into it's equivalent INR doesn't make sense. As of 2020 the purchasing power parity was 22 LCU per international $ (found it online, can be more. According to Ministry of Statistics it was Rs 20.65 per USD in 2017). So effectively the price for a litre of Diesel is Rs 32.02 and the price for a litre of Petrol is Rs 24.87. Still just a fraction of what we pay.

[amol4184]

Like everyone said diesel has always been expensive than gas. I think the real news here is the gap between prices is at the widest.

I remember from 2013 till last year the gap between two used to be as low as 4-5 cents, going up to 40 cents but not more than that. On very rare occasions diesel was cheaper than mid-grade gas by a few cents at the max, quickly recovering again.

Apart from Jeep Wrangler I don't know a single private vehicle that comes with diesel engine as an option. This new high price probably doesn't matter much for common buyers.

[Sran]

I think conversion of prices is the right way to move forward. It is a good practice to use domestic numbers on a domestic platform. We all can convert it into dollars if need arises to calculate. I would say we are rather too regular in converting any amount to dollar and vice versa. We should also frequently use Lakhs instead of millions.

Coming on point of discussion, if USA isn't able to control rising prices of diesel then it would be real tough for us to control it. Diesel price directly influence inflation. In USA goods transported by road is around 72% by volume. They also have their own oil production which we don't have. In India almost 64% of goods transportation is done by road. Logistics costs 12% of GDP to be reduced to 10% of GDP by year's end. It will save 80,000 crore rupees. Railways have a share of 27%(Data by statista) by increasing railway freight corridors. 1.2-1.4 crore trucks and 70% are owned by small fleet operators.

[Naetik30]

Diesel prices in US have always been higher than petrol. This reflects the reality of the refining process for diesel.

[AutoNoob]

As mentioned by fellow BHPians, Diesel prices in most developed countries have been higher than petrol for atleast last 2~3 decades.

In India, the taxation structure makes diesel cheaper. That's why we (Indians) get surprised by seeing diesel at same price as petrol.

[Indian2003]

Originally Posted by AutoNoob

As mentioned by fellow BHPians, Diesel prices in most developed countries have been higher than petrol for atleast last 2~3 decades.

In India, the taxation structure makes diesel cheaper. That's why we (Indians) get surprised by seeing diesel at same price as petrol.

Until lately diesel has always been cheaper than petrol in Norway. During the price surge I saw diesel costing more than petrol in some days.
The price today at the pump was in Indian rupees, 180 INR a liter.

Glad I got an EV. Total amount of electricity used for 2000 km is 270kWh costing 54 euros. In some parts of the country it would have cost under 5 euros.

[RedTerrano]

Originally Posted by narayans80

First rule of thumb, no conversion business. You earn in USD, you pay in USD.

Originally Posted by saket77

I don’t think currency value conversion is a proper benchmark to compare the prices of any commodity of two different countries unless one will be earning in one and paying in the other country.

Fair enough, but then how do you equalize, considering we (India) pays for crude in USD?