Honestly, how come oil prices are jumping?

Why are diesel prices so much higher than regular gas? Doesn't it cost MUCH less to refine diesel than unleaded? I've been paying close to $4/gal for diesel at stations with $3/gal for regular. I've seen this question on many blogs and the best answer anyone can seem to give is gouging.
— Travis C., Baltimore, Md.

No, it does not cost much less to refine a gallon of diesel. The biggest single cost is crude oil which is the same for diesel and gasoline. It costs the same to ship a gallon of diesel from a refinery to your tank. While it’s true that diesel is slightly less “refined” than gasoline, that doesn’t lower the cost. In fact, refiners have just spent hundreds of millions of dollars to upgrade their plants to meet new ultra-low sulfur diesel standards set by the government to reduce air pollution.

Diesel prices also depend on supply and demand, and the balance between the two varies somewhat for the two fuels. If diesel supplies tightens relative to demand, prices go up — no matter how much it cost to make.

Scores of states and the federal government have tried to find evidence of gasoline price gouging. Except in isolated instances where wholesalers or retailers took advantage of short-term interruptions in supply, the evidence just isn’t there. Over the long run, markets set prices, not oil companies.

Where can I find a track of oil prices comparing week to week or day to day? What the price was on Monday compared to Tuesday compared to Wednesday etc.?
— Phillip P., Dublin, Va.

The Dept of Energy's Web site is a wealth of information on petroleum prices, including a weekly commentary called The Week in Petroleum, which is updated every Wednesday when the weekly government numbers on prices and inventories are released.

You can also track gas prices daily at the AAA’s Web site, Daily Fuel Gauge Report, which also offers up state-by state prices.

AAA gets its data from the Oil Price Information Service, another great resource for the latest on industry trends. Check out OPIS President Tom Kloza’s blog, Speaking of Oil.

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