Diesel or gasoline vehicles

What Can You Do About Rising Diesel Fuel Prices?

Diesel fuel is one of the most important commodities on the economic landscape. The reason for this is that the transportation used in almost all aspects of the economy is fueled by diesel engines. Rising diesel fuel prices usually translate to rising costs of products and services. In order to know what can be done to slow down this increase, you as a consumer need to understand its causes.

Elements of Worth

There are several basic elements that determine the worth of a gallon of diesel. About sixty percent of the cost of diesel reflects the price of crude oil, which is raw material for diesel production. Crude oil is purchased from oil producing countries and subsequently brought to refineries where the ultra-low sulfur diesel, among other petroleum products, is extracted. Given a barrel of crude, a refinery will be able to distill about one tenth of a barrel of diesel. Refining accounts for nearly twenty percent of diesel fuel cost.

The remaining elements of the cost of diesel fuel are government taxes and the expense of marketing and distribution. A ten percent excise tax is levied onto all fuel products that are manufactured in the country. Although foreign fuel avoids this, it is generally cheaper to buy locally refined fuel as import taxes generally translate to higher unit price. Marketing and distribution only makes up five percent of total diesel fuel cost, but this can often be the most volatile factor affecting the value of diesel fuel.

Origins of Increase

Basically, the price of everything is dependent on supply and demand. If supply is low and demand is high, prices will go up. If supply is plentiful, the price will stay steady, and may even decrease when demand wanes.

Crude oil supply is dependent on oil producing countries, so anything that disrupts their production activities, like wars or economic embargoes, will drive the price of both world crude and diesel up. Refining costs are generally pretty stable, but both local and foreign companies compete for refined fuel. If the demand of foreign countries for the diesel produced by local refineries increases, this can ultimately result in elevated fuel costs.

The most unstable factor that affects diesel fuel is undoubtedly local marketing and distribution. Diesel fuel is in such high and constant demand that fuel stockpiles are generally pretty shallow. This means that if there is a sudden spike in fuel consumption, the warehoused supply will not be enough and this will drive the price of fuel up. Another factor is distance; consumers close to refineries tend to pay less because they avoid transportation costs. Local competition also plays an important role in regulating fuel prices.

Control Stems from Understanding

World supply and demand, international politics, economic pressures, all of these play interrelated roles in the cost of fuel. Though they seem beyond the comprehension of the non-economist layman, it all really boils down to supply and demand, and this is something anyone can understand. Saving fuel and lowering consumption is not only good for the environment; it decreases demand, and ultimately, cost. Programs which promote peace and goodwill among nations do not only make a better world; they result in less disruption of supply lines, and again, decrease fuel costs.

The factors that affect diesel fuel prices seem complex, but an understanding of the basic principles can empower the individual consumer. Unsurprisingly, it would seem that doing the right thing really is the right thing to do.

Understanding the Increase in Diesel Fuel Prices

It was only in recent years that diesel fuel prices soared above gas prices. These two fuel categories used to have different peak seasons, with gasoline prices enjoying greater primacy in pricing over longer months. Gasoline then had the biggest gap in prices from diesel fuel during the summer months, when demand for gasoline peaked as a result of families taking long drives across states. Meanwhile, diesel fuels scored higher prices during the winter months, when the demand for distilled heating oils used at home increases as well. This is because distilled heating oil and diesel fuels are refined in the same facility using the same process, causing the demand for diesel fuel and distilled heating oil to act in a parallel manner.

The increase in the base price levels of both gasoline and diesel fuel has been primarily driven by the worldwide increase in crude oil prices. Crude oil is the basic ingredient from where different forms of fuels are derived from.

However, there are three particular reasons why the demand for diesel fuel have increased over time, the first being increasing demand, the second being the slackening demand for gasoline, and third being new environmental restrictions on gasoline.

First, there has been an increasing demand all over the world for diesel because of the increase in number of diesel-powered engines. In years when gasoline prices soared over diesel prices, car manufacturers produced cheaper diesel-powered vehicles in order to capture the market of consumers who wanted to save on gasoline prices. However, the fact that these diesel-powered vehicles have outsold gasoline-powered ones has obviously caused more people demanding diesel fuel to run their engines. This trend is true not only in the United States, but also in China, Europe, and India. With a limited supply of diesel fuel produced annually, increases in demand causes the price to distort upward.

In addition, the relative increase of prices of diesel fuel products have made gas prices appear much cheaper, especially with less people choosing to buy gasoline. Increasing consumption of diesel fuel has driven up its prices, whereas a near steady to decreasing consumption of gasoline has led to its price to remain stable, if not decreasing as well over time. This increases the relative price gap between the two.

Lastly, government legislation has caused the regulation that requires the reduction of sulphur content in diesel from 500 million parts per gallon to 15 parts per gallon. The process of reducing sulphur in diesel to this extent will cause greater expense in refining and producing retail-ready diesel fuel for consumption. In the year 2006, the goal was to have 80% of motorist traffic complying with this ordinance; by 2010, 100% of diesel available in the market must comply. As with all industries, the cost of additional stages of processing will be levied on the final retail prices of diesel fuels, causing a greater increase in prices above the already significant impact that high demand has on it.

When looking at diesel prices, it is important to appreciate what drives the increases in prices, and even the standards for when people say prices have increased. For the latter, the relative increase in diesel prices in conjunction to the relative stability or decrease of gasoline prices has increased the perception of more expensive diesel prices. The drivers for increases in diesel fuel prices, however, remain to be that of increasing demand for the limited supply of diesel fuel, as well as costly processing of diesel in order for it to comply with environmental standards.

The Usefulness of Water amidst the Diesel Fuel Prices

There is no doubt that the diesel fuel prices nowadays have gone too high. Preferably, diesel is supposedly more affordable than gasoline itself. What has happened now? It seems that the two are in a race and the most positive conclusion to what is currently happening is that even diesel has a skyrocketing price. Where does this leave the car users other than on the losing end? True enough, with its escalating amount in the market, the consumers are more and more pushed to their limits. Add to it the looming financial crisis and unstable economic status all over the world.

A few years back then, experts have revealed that water can serve as an alternative to diesel fuel. The public was hence taken aback. Others heaved a sigh of relief and believed in the latest findings whereas some doubtful individuals raised their eyebrows. The news have struck the technology-wise bodies so unsurprisingly, studies have been conducted to prove it and come up with a technological break for water as a substitute for fuel. Many people have trusted that diesel fuel will never be on equal footing with the price projected by gasoline yet the opposite thing has turned up this time. This article is then going to provide you with a quick background as to why water can be used in place of diesel fuel.

Taking a Look at this Substantial Substitute

The concept behind it is to utilize the hydrogen gas or H2 as an alternative fuel instead of diesel. As of the moment, no fixed technology has yet been unraveled that will let a vehicle run by solely using hydrogen gas but the specialists are on the course of coming up with an output. For now, they have found out that teaming up the hydrogen gas with that of diesel will enhance the car mileage.

Hydrogen gas is rooted from water using an electrolysis device and the latter pulls some power from the car battery. As soon as the required circuit has been enabled, hydrogen gas will be generated. The next step is to discharge the H2 towards the engine air intake system. This phase will bring gas towards the combustion chambers and then mix up with the diesel fume. As a result, the mixture will turn out to be sturdier, more effective, and smoother in terms of the engine’s burning power. As for the car users, the vehicle can boost its mileage and bring in lots of savings.

Use of Water Fuel Conversion Kits

You don’t have to focus much on statistics and other mathematical equations to let the water fuel work. It is easy. The parts that should comprise the electrolysis device are widely available from the hardware stores. The water fuel conversion kits allow the splitting of water and hydrogen. All you have to do is to take note of the step by step procedure. You can also check the procedure online. If you feel that you need a professional to do it, there are mechanics and other car technicians who can help you out.

With the rising diesel fuel prices, consumers like you are left with no other choice but to look for affordable alternatives. Thanks to modern technology along with the experts since they never fail to unearth profound solutions to problems such as this.

The Basic Fact Sheet on Diesel Fuel Prices

As consumers, the basic basket of goods that we often purchase in the course of everyday involves diesel and other fuel products, making us susceptible to the impact of diesel fuel prices. Diesel fuel, gasoline, and oil are used not only in running cars and other transport vehicles, but also are used for cooking, heating the home, and powering diesel-powered equipment like snow-blowers, lawn-mowers, and the like. A huge chunk of expenditure goes to purchasing fuel to run these vital activities, which would justify trying to understand as much as one can about how it is priced and where the product itself is from.

To start with, diesel fuel is one of the refined versions derived from basic crude oil. Other forms of crude oil that results from refining include gasoline and distillate heating oil. This fuel type was named after Rudolf Diesel, the German engineer who created ignition engines that make use of diesel fuel.

Diesel petroleum is in fact a distillate of crude oil. While there are many types of distillates that can be derived from crude oil, Number 2 distillate is what is distributed for use in vehicles and equipment in many countries; it is also the same oil base used for distillate heating oils used to heat buildings and run industrial plants.

The chain of processes that create the value inherent in diesel fuel begins from the moment crude oil is purchased. Crude oil, as mentioned previously, is the base ingredient from where diesel fuel is derived. This base ingredient is traded internationally, with price determined by supply and demand dynamics. Crude oil is primarily produced by oil-exporting countries, all of which often belong to big oil cartels that dominate the supply dynamics in the market.

The demand for energy is not limited to the United States, but expands across Europe, China, and India. The thirst for energy for consumption occurs both in the level of industry, as well as individual consumers. On the consumer level, this means that the strong preference for diesel-powered vehicles has led to the need for diesel fuel in order to maintain the operations of these vehicles. In the industry level, expanding economies like China and India, and more stable economies like European ones, all rely on the supply of diesel fuel to run many of their transport sectors and even many of their industries. The high demand from both sectors has driven the prices of diesel fuel up: with limited supply, people use money in order to gain preferential access to the resource.

In addition, governments play a role in determining how diesel fuels arrive at the point of mass consumption. Governments levy hefty taxes on oil refining and distribution companies, many of which already run the regular gas pumping stations. Also, governments have required the reduction of sulphur content in diesel fuel, creating an expensive additional stage in the refining process to reduce sulphur. The additional burden of tax, the cost of operating distribution through gas pumping stations, and the cost of building infrastructure to enable them to comply with government ordinances have driven diesel prices to higher levels even if production costs considerations were ignored.

Knowing these drivers, and just what this resource is all about, allows consumers to better appreciate the dynamics of the energy industry. They will also be able to use their common knowledge of market dynamics in order to predict or protect themselves from diesel fuel prices inflation.

Some Alternatives to the Shocking Diesel Fuel Prices

Indeed, the world is faced by a spectrum of problems nowadays. The issue on recession has not yet died out but seems to be worsening even more. Add to it the fact that the cost of the basic commodities have also soared up. One of the shocking revelations that confront people, especially the car and truck owners is the increase in the diesel fuel prices. With the presence of all of the political and financial struggles all throughout the globe, this thing is another unwelcomed event.

However, no one can deny the fact that diesel fuel is very vital. It runs cars and industries. Simply put, the world is dependent on it. No one can just do without it. It seems though that no one is in control of its escalating price. The market is filled with uncertainties so the price of fuel changes every now and then. Therefore, the people are in search of ways on how to fight off the deliberately shocking value of the fuel which is in fact an integral part of human life.

Run Your Car on Water

Some years before, there were individuals who claimed that it is possible to run cars on water. There were of course people who gasped and heaved some sigh of relief yet the others were under some disbelieving notion. As it goes, running car on water means that car and truck users can now save money and at the same time promote the so-called concept of « going green ». With water acting as the fuel, there will be lesser emissions which mean that the environment will be in a safer state.

The rumors need to be clarified though. Yes, it is possible to use water as a substitute for diesel fuel. However, it can’t be done outright. What has to be done is to extract the water component that is known as hydrogen gas or H2 by using the electrolysis device which will channel the output towards the engine air intake system. As soon as the hydrogen gas is blended with the normal type of diesel fuel, the combustion chambers will burn the mixture and then produce some enormous and powerful produce. This will then lead to more effective mileage.

The process is done by means of electrolysis. As you know, water is made up of two parts hydrogen and then 1 part of oxygen. This is the main reason as to why it is labeled as H2O. The procedure of letting electricity pass through water, the « Brown gas » or technically known as hydrogen will be separated from it. On the other hand, the Brown gas is itself one type of combustible gas which is an absolute source of energy for vehicles.

Resort to Biodiesel

Biodiesel is one more alternative that people can turn to. It can be rooted from vegetable oils, animal fats, and from the used restaurant grease. In some parts of the world, farmers are selling their corn produce to the biodiesel generating industries. While some parties think that this is an unwise move because instead of growing the corn to feed the hungry mouths of the population, they are given up for the production of fuel. Meanwhile, for the farmers, anything that will give them money is good enough to provide for their needs.

Needless to say, these are some of the alternatives that can be adhered to in order to fight off the rising diesel fuel prices.

Projection for Diesel Fuel Prices

For as long as the prices of crude oil and the demand for distillate fuels are maintained at a high level, the retail diesel fuel prices will in most likelihood be high, too. The Energy Information Association (EIA) has released a report on what is likely to happen for remainder of 2008 and 2009 for the United States. It states that the national average retail prices for diesel fuel will reach its highest point during the third quarter of 2008 then it will decline by the fourth quarter of 2009.

However, these are just projections; hence, there is no assurance or guarantee because it can be greatly affected by the instability and unpredictability of the prices of crude oil and petroleum products. Among the many factors that affect the prices, below are the main ones that are faced by United States, especially the West Coast countries:

The Effect of Sulfur on Prices

The Environmental Protection Agency (EPA) standards for diesel fuel sulfur content can also alter the prices for diesel fuel. What needs to be taken into consideration is the logistics of delivery of the Ultra-Low Sulfur Diesel (ULSD) fuel to retail service stations. Most of these products are transported via pipelines to reach the bulk terminals then to tanker trucks then finally to the retail stations. Contamination may happen to the ULSD fuel because these pipelines, storage, and local distribution systems also serve to deliver other diesel fuels and petroleum products, which have higher sulfur content. If a batch of ULSD fuel gets contaminated, it might not be an option to mix it with additional low-sulfur product to bring back its sulfur content to the original level. The contaminated batch has to be returned to get reprocessed in a refinery, and this solution is a difficult and expensive one. More so, the production of ULSD fuel entails a big expense to begin with. So any problems that might arise along the way with regard to delivery will just add up to the expense.

Geography and Taxes

Another factor that affects the prices of diesel fuel in the United States is the geography. West Coast countries have generally higher prices than the other parts of the country. This holds true especially for California because of the taxes and issues on the supply. These countries add more tax—that is, they combine the state and local taxes, and add another tax value on top of the federal excise tax and state tax. Washington is one of the countries that have the highest tax.

Geography and Relief Supplies

The West Coast countries also have higher prices for diesel fuel because they have relatively fewer supply sources. Because majority of the refineries in this region are located in California, a single refinery that encounters difficulties in operations will greatly affect the diesel supply. In turn, this may elevate the prices because there will be fewer supply to meet the high demand. More so, the West Coast is very far from the Gulf Coast and other foreign refineries—that is, any fluctuation on supply-demand will generally result in price fluctuation because it will take some time to transport relief supplies to these countries. The farther the relief supplies are, the higher the diesel fuels prices will be and the longer it will remain at such price.

Is Biodiesel the Answer to Unstable Diesel Fuel Prices?

You were probably shocked when we had the record breaking fuel prices both on gasoline and diesel in July 2008. What was more shocking was that at one point, diesel prices become more expensive than gasoline. What happened next was completely unexpected. After a couple of months, fuel prices began to drop steeply. Speculator say that prices will reach as high as $200 per barrel but now, it is at $40 to $60 per barrel.

Still, the government took action by releasing funding on exploration of alternative forms of energy and gave incentives on those who produce crops that will be converted into fuel. While the government had been active in its campaign to become energy independent since time immemorial, it was just recently when crude prices were up, that the government had seriously taken it as a priority.

But is biodiesel the answer to unstable diesel fuel prices?

Originally, the diesel engine was designed to run on vegetable oil. But since petroleum diesel was cheaper then, vegetable oil was simply not an economical choice. But now, pump prices have driven farmers to convert their lands into biodiesel plantations. On one hand, the production of alternative fuel like biodiesel is good since its use will reduce our demand for petroleum oil. And if the demand is low, the prices will follow as well.

Since biodiesel comes from vegetable oil, it is 100% biodegradable. It does not hurt the environment. Furthermore, a wide spread use of biodiesel in the future will help solve air pollution in big cities because biodiesel help reduce carbon dioxide and other greenhouse gases emissions. The decrease on petroleum consumption has a good environmental effect.

On the other hand, experts say that while converting farmlands into biodiesel will ease the demand on petroleum products, it will drive the food prices up and may create food shortage. This is because lands that are supposed to be used in producing food are now producing fuel. Many farmers are now focused on fuel production and not on food production. Early signs of food shortage were felt right after farmers began planting more corn. It should be remembered that just recently, corn prices began to rise because of the increasing demand for biodiesel. Prices of other farm-produced fruits and vegetables rose as well.

It is important, therefore, to understand the effects of solving one problem. Does it create another problem in the process? Or will it just be a temporary solution? It is also important not to focus too much on solving a particular problem.

There are other ways to get biodiesel. Recycled restaurant grease, vegetable oil and animal fats can be used to drive your diesel engine vehicle. Other alternative forms of energy that are both efficient and do not harm the environment include solar energy, electric and even water.

No one really knows what the future of diesel fuel prices is, but one thing is for sure: if high prices happened before, it is not impossible that it will happen again. But that doesn’t mean that we focus our attention solely on producing biodiesels. We have to find and develop other forms of energy that will not compromise other important commodities. There is nothing wrong with using biodiesel but make sure that biodiesels will not become the problem that is much harder to solve.

How to Weather the Effects of Diesel Fuel Prices

The diesel fuel prices are much lower today than it was in July. But that doesn’t mean that we can drive in any manner we can and waste money on fuel. The economic crisis is still here and is draining your wallet big time. Here are some things you need to do to save fuel and money.

Pressurize

Check your tire pressure regularly. Running on a soft tire increases road drag, road noise, tire temperature and chances of blow-out. Make sure that you follow the manufacturer’s recommended tire pressure.

Lighten up

If you are driving your truck on weekend golf, that is okay. But do you really have to bring your equipment for the rest of the week? Okay, you don’t play golf. Still, you need to remove unnecessary things from your trunk or your truck bed. Extra weight consumes fuel.

Don’t be a drag

Manufacturers have all the right reasons why they design your vehicle the way it is. Avoid altering your ride by using leveling kit. This destroys the aerodynamics of your car. A good looking truck with kits and all may catch eyes but take note, it catches air too. Aerodynamic drag consumes more fuel if the vehicle is modified.

Quit Idling

Idling will get you 0 miles per gallon. Not bad, right? Seriously, you are just wasting your fuel on warm-ups because modern diesel engine vehicles will get into running temperature in a matter of minutes. Once you turn the key, drive with a light right foot – this is the best way to speed up the process of warming up your car.

Moreover, do not leave your engine running whenever you make a quick stop at the convenience store. Not only it is noisy and wastes fuel, a running car engine also attracts people to hop in and steal your ride.

Activate your overdrive and cruise control
Vehicle manufacturers develop these features and install them in your car for a reason. And you as a consumer pay a premium price to have these. Use it, for diesel’s sake (not the actor). Turning them on will improve your mileage significantly.

Drive sober

I don’t mean that you become the designated driver every time you go out with your friends on a Saturday night. What I mean is, drive sensibly. Aggressive driving, abrupt accelerating and hard braking shorten the distance between your point of origin and the next gasoline station. If you are driving on a stop-and-go traffic, use a light right foot; and do not smoke the back tires when accelerating, If possible, schedule your trip outside the rush hours.

Increase air intake

Air is as important as fuel during combustion. You may be driving at your best but if your air intake restricts air from getting to your engine efficiently, you still consume more fuel. Replace air intake with aftermarket part that minimizes the distance between the filter and the engine.

Speaking of filter, make sure that your keep your air filter clean. Dirty or clogged filter will prevent air from coming in to your engine resulting to poor mileage. Replace or clean air filter whenever necessary.

Regular checkup

Save on diesel by getting a regular checkup for your vehicle. Regular tune up, checkup and change oil will keep your engine in top form and parts in good running condition.

How to Combat Diesel Fuel Prices

With at least half of the world’s population depending on diesel to run their cars, another dilemma is about to cloud over everyone. That is, the visible increase in the diesel fuel prices. Much more, the rise in its cost can impose tremendous changes on the amount of the basic commodities. This nevertheless denotes that apart from tightening everyone’s belts, such need can’t be ignored. Everyday there are thousands of cars that traverse the roads. The diesel fuel is also needed to operate some major industries. With the financial threat that clouds all over the world these days, it seems to be impossible not to mind such changes. In line with this, there are more reasons for you to ponder on using an additive to diesel.

A Look at the Past

Tracing back time, it can be noted that most trucks and car owners have utilized some diesel fuel stabilizers to boost fuel lubricity. Doing so lessened the chances of the wearing and tearing of the engine parts. In the past they were still oblivious of the effects that the additives can bring on to their gas mileage. Their focus then was to ensure that their engines were always in perfect condition and that their gasoline was effectively burned. Now that the times are hard, the industry is trying its best to go back to the old times and promote the use of fuel additives to somehow ease the burden felt by the vehicle owners. Those which possess diesel engines are the targets. Yes, the diesel engines are known to save more energy compared to those that run on gasoline. However, the principal concern for now is that using the additives can create a good impact to combat the rise in the cost of diesel fuel.

The Top Reasons on why You must Use the Additive

It increases mileage. If you are one of the owners of a diesel engine powered car but you have never experienced a great mileage before, then it is time to try using the additive. Just imagine how much you are spending in gassing up your car. You deserve a better mileage, so to speak!

It helps you pass the emission tests. Through time, the government standards seem to be too tight for the diesel engines. With the use of the fuel additive, you don’t simply improve your car engine’s proficiency but you likewise emit lesser emissions. This ranks your car as an environment-friendly one.

Diesel engines have more available parts in the market. Needless to say, people are investing on the parts that comprise the diesel engines. Hence, you will not have much of a problem when you need a replacement.

It is rational to decide on using the fuel additives. Yes, this is a sane thing to do. By doing so, you get to enjoy more miles than by simply running your car only by diesel fuel.

Without asking further questions, one fact remains the same. There is nothing that you can do to lower the value of diesel fuel. Yet you can better save your money and at the same time enjoy more mileage with the use of the additives. In this time and age when the diesel fuel prices seemingly work out of control, the best course of action to take is by means of improving the efficiency of your car’s engine.

How the Industry Arrives at Diesel Fuel Prices

The movement in diesel fuel prices has had a strong impact in a variety of industries that makes use of diesel not only in running machinery, but also in transporting goods. This is because the use of diesel in transportation and energy underlie a huge number of functions in everyday life. Majority of delivery trucks, public transport vehicles like trains, buses, boats, ships and barges, and even construction and farming equipment, make use of engines that run on diesel fuel. This means that as the prices of diesel fuel soar, the costs required in facilitating the activities of which these vehicles and equipment take part in also increase. This either reduces the amount of profit these industries can have, or makes them have to choose the unfortunate option of levying costs on the retail prices they offer their consumers.

Regardless, anyone who has a stake in the way diesel prices change or move should at least attempt to understand what drives these fuel prices from going up or going down. By understanding what drives these movements and how the prices are determined, one is able to better foresee and interpret the various economic indicators that usually point to a time of increases in prices and the like.

In order to determine how fuel prices are derived, it’s important to first look at the costs associated with its production for availability in the retail market. The first cost to take into consideration is the cost of buying crude oil. Crude oil is the primary ingredient required in the production of a variety of fuels, including diesel fuel, gasoline, and even distillate heating oil. Crude oil prices are traded in the international market, which subjects it to the dynamics of international supply and demand. The limited supply of available crude oil from oil-producing countries, and the growing need or demand for energy worldwide has helped maintained competitive prices in the industry.

Next, crude oil enters the process of refining. This is the stage where crude oil is processed into the different forms of fuel it will become. Gasoline and diesel fuel primarily differ in the refining process that is used for it. Originally, better-refined gasoline was more expensive than diesel fuel; however, the costs of processing gasoline were overrun by the price impact of excess demand for diesel fuel. Diesel fuel and distillate heating oil, on the other hand, are processed using the same refining process. This is the reason why the increase in prices in one affects and increases the prices of the other.

Costs in order to bring the refined oil to the market—both marketing and distribution—also add material and at times, expensive costs to diesel fuel. This is because the transportation of oil, the marketing and advertising operations of the oil firms, and the manpower necessary to run all these operations, all involve costs that the company must incur in order to sell the final refined oil product to the market. Gasoline stations from where people get both gasoline and diesel fuel also incur costs for operations, a part of which is also levied on the retail prices of refined oil.

Over and above these production costs, governments levy taxes on oil products, creating greater impetus to increase fuel prices. It is the combination of these cost contributors that determine the dynamics of diesel fuel prices in the retail market.