shi thouse said...
As a diesel car owner, this fuel has become a joke. This fuel is potentially greener, given its increased efficiency over petrol and is apparently less refined - hence should cost less to produce. However we are paying $0.10 to $0.20 per litre to purchase. Apparently China's demand for diesel has everything to do with it.
Although diesel is marginally less refined, the cost comes down to supply and demand. A refinery buys crude oil and makes two main products, petrol and diesel (and other products, but these are the main two). There is a finite amount of flexibility as to how much of the crude oil becomes diesel and how much becomes petrol. Diesel has a greater demand, and as such, the refineries are trying to maximise diesel production and make less petrol. In order to satisfy the consumers demand for diesel, the refinery ends up with too much petrol. We therefore have a massive demand for diesel with limited supply, and a smaller demand for petrol with an oversupply due to the refineries trying to keep up with diesel demand.
In the current environment, most australian refineries are making a small loss on petrol, but balanced by a profit in diesel.
As for turning vege oil into diesel, yes it appears to be economical. Lets assume vege oil today is $1.00 per litre. As soon as you put an order in for 10kL of vege oil per day, guess what happens to the price... (this is exactly what happened a few years ago).
Fuel prices are only going to go up as the world population increases and the cost of pumping oil out of the ground also increases. Either change your lifestyle to become less dependant/addicted to oil or shut up and continue to pay for what i consider to be a very underpriced product, when you consider how much energy is available in a litre of oil. A litre of oil will drive you and your 1.5 tonnes of junk for approx 10kms at 100kph. Try pushing your car (at 100kph) for 10kms and then have a think about how cheaply you can do that without having to push.