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Discussion Boards > Active Subjects > Messages as Posted > Diesel Fuel Lubrication Engine Additives Forum

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 03-07-2005, 15:49 Post: 107448
metastable



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 Diesel Prices--When do you stop operating???

Diesel prices are skyrocketing around most of the US. Prices have almost hit $3/gallon around here (PUC is $0.21/gallon cheaper). This got me thinking about all of you out there. At what price can you no-longer afford (or want to) continue running your diesel equipment?






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 03-07-2005, 16:07 Post: 107453
shortmagnum

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 Diesel Prices--When do you stop operating???

I don't really burn enough in my tractor to make it too expensive. It has changed all thoughts away from buying a diesel truck though. I think I'll keep my f150 for awhile longer.

I heard on the radio that Willie Nelson is now promoting bio diesel. They mentioned it costing $1.80/gal to produce from soybeans. This sounds like an underestimate to me. Does anyone know the actual cost?
Dave






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 03-07-2005, 16:46 Post: 107461
earthwrks

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 Diesel Prices--When do you stop operating???

Stop operating (diesel) equipment? I can afford NOT to! Dollar for dollar diesel is cheaper to operate than gas any day. I've got 5 pieces of diesel equipment, and a diesel pickup. I can run any of them all day under extreme work conditions for $15-$20 a day--and make a return of $600-$1000. My '03 Dodge Ram High-Output 4x4 gets anywhere from 17-28MPG highway, loaded with tools and about 15-17 pulling 15,000 lbs. Can't get that out of gasoline.

As far as biodiesel cost, I'm SW of Detroit in a semi-rural area. Bio is about 25 cents MORE per gallon. To date On-Road diesel is 2.11/gal. and suppose to go up 15 to 20 cents this week.






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 03-07-2005, 20:41 Post: 107484
Iowafun

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 Diesel Prices--When do you stop operating???

My diesel CUT with a 72" mower is still more efficient than the regular gas lawn tractor. Won't be giving up the tractor.

Running a diesel pickup. Still gets better mileage than gas trucks. I may switch it out to the motorcycle for regular runs back and forth to work. Can't beat 45 mpg for the bike.






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 03-07-2005, 21:03 Post: 107487
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 Diesel Prices--When do you stop operating???

I'm just a small scale tree farmer and don't go through enough diesel for the high prices to have much of an impact. But we were in the market for a Jeep Liberty Diesel for my wife and those plans are on hold.






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 03-07-2005, 22:06 Post: 107495
metastable



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 Diesel Prices--When do you stop operating???

I guess in small quantities, it probably isn't that noticeable. However, for larger consumers of diesel (like large farms, truck drivers, loggers, etc), it seems that already-thin margins are disappearing. If these consumers start losing money and stop operating, what will the ripple effects be in the economy? At what price would you park your equipment?






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 03-08-2005, 07:52 Post: 107516
earthwrks

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 Diesel Prices--When do you stop operating???

From my perspective as a small excavating business owner, the work I do is in demand, that is, consumers cannot do without it. Just like high-priced cars, and entertainment---"big-biz" knows people can--but won't--go without it. Ultimately those costs get passed on to the consumer. Just like the "steel surcharge" we see whenever we commercial guys have to buy something made of steel from a stupid valve to a peice of heavy equipment. UPS and FedEx have a "fuel surcharge" which, again, gets passed onto the consumer. We businessmen cannot just put down our tools as no matter what it takes, no matter what it costs, the job has to be done. Why? Simple. We have mouths to feed and equipment to pay for. Why? Because people need it and so the cycle continues.






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 03-08-2005, 07:54 Post: 107517
Murf

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 Diesel Prices--When do you stop operating???

The short answer is "never".

Parked equipment = retirement.

IMHO what you are going to see is one of 2 things; a 'fuel surcharge' just like couriers, airlines, and trucking companies, just to name a few, have implemented, or a government scheme, God help us, where the 'ag. fuel' is either subsidized, or rebated in some form.

There is already talk up here about the federal government making the production of Bio-Diesel for Ag. use to be totally tax free. Big incentives for the manufacturers.

More likely is just an increase in commoditiy prices to reflect the increased costs of production.

For contractors and builders, the decision is simple, raise prices, same as when a union demands higher wages, or when the price of supplies goes up.

Best of luck.






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 03-08-2005, 08:04 Post: 107519
Chief



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 Diesel Prices--When do you stop operating???

For the most part my Dodge Cummins truck and my 4410 are neccessities. The work they do will still be required to be completed. What would be available to take their place??? As already mentioned, when diesel prices get high enough; biodiesel will be cost effective to manufacture. The added competition might do the oil companies some good. I imagine that Archer Daniels Midland could them a good run for the money. The farmers will hopefully benefit from the higher prices for soy beans and rape seed. (currently around $5 a bushel) Best of all, much more of the money spent for fuel would stay here in the States.






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 03-08-2005, 16:08 Post: 107547
brokenarrow



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 Diesel Prices--When do you stop operating???

If you own a plat truck or pleasure truck that is diesel you (in my area) have been paying more than reg unlead for along time. All you owners of company's can pass on the added cost if you want. MANY MANY contractors have already includeing ALL the cement company's around me. In fact they raised it in 2002 and just raised it again . ALL of us will feel the effect of just about EVREYTHING we buy. it WILL be passed down the porcelin tube and right into the consumers lap. I would not expect a owner to take a loss, it is an operating expense that needs to be addressed. I thought I heard Ill. has a refinery for bio also. MAN this could end up being a good deal for our much needed farm owners if it get to much out of hand.






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Discussion Boards > Active Subjects > Messages as Posted > Diesel Fuel Lubrication Engine Additives Forum

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brokenarrow 2 | Chief 1 | earthwrks 3 | hardwood 1 | Iowafun 1 | kwschumm 1 | metastable 2 | Murf 2 | shortmagnum 1 |




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