Posted by Deere54 on December 15, 2014 at 08:54:55 from (152.119.255.251):
In Reply to: Gas vs Diesel posted by Sourgum on December 14, 2014 at 20:30:15:
Public relations and inelastic diesel demand. Gas prices are highly visible to the general gas-consuming public so the oil companies think they can lower gas prices and thus garner some public good will. Gas is a loss leader. The oil companies' real profit comes from No. 2 (Diesel) fuel, demand for which as others have pointed out is nowhere near as elastic as for gas. Gas goes up, people can cut back some, but there is nowhere much to cut back in No. 2 (diesel) usage. You have to buy your No. 2 to heat your home, work the land, freight transportation etc, no matter what it costs whereas your teenage kid can always skip the trip to the mall if gas is too high.
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Today's Featured Article - Uncle Cecil's Super A Lives Again - by Mike Purcell. A week or so out of most of my childhood summers was often spent with my Uncle Cecil and Aunt Sissie in the small East Texas town of Maydelle on their 80 acre farm. Some of my fondest memories of these visits are those of learning to drive a tractor at the helm of Uncle Cecil’s 1948 Farmall Super A. Uncle Cecil was the second owner of this wonderful little tractor, but it was almost as though he had adopted an infant. The original owner was a man from Minnesota who bought her from a local dea
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