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Core 2 Duo

Why is the price of jet fuel lower than gasoline?

I am new to this but correct me if I am wrong, a barrel of crude can be used to create 19 gallons of gasoline, as well as 4 gallons of jet fuel, among other products, so common sense would say that there is less jet fuel available in the country than there is gasoline, but then why is the price of jet fuel about $2.12 a gallon, and gasoline near my house is $3.25?
Know_it_All:

It is taxed differently

It is less refined, although it is more highly filtered and tested.

It is delivered via pipeline, rail, or large trucks to far fewer locations than demanded by auto fuel.

It is sold in larger quantities.

There is less theft.
Much less total is used, planes are counted in 1000's per day, cars in the millions.

Core 2 Duo:

I am pretty sure jet fuel is much more refined than gasoline, and the demand for jet fuel is about 1.7 billion gallons a month, and gasoline is about 400 million gallons a day, which is a large difference, except that we produce 4.5 times more gasoline than jet fuel, so the supply and demand is the same for each, look up the use of jet fuel on 1 trip from new york to california, there may be alot more cars but planes use more fuel.

Know_it_All:

Jet fuel is kerosene. It is above diesel and below gasoline in the refinery distillation tower, thus less refined. It is kerosene with very specific traits such as smoke and freeze points, so it my be more processed (filtered, additives, etc), but it is much less refined.

I have not looked up the usage, but with your figures 1.7 Billion gallons demand for Jet, and 12.0 Billion gallons for gas (400 million a day * 30 days). This makes the demand for gas a little more than 7 times that for Jet fuel (12/1.7). If we produce 4.5 times more gas than Jet fuel, yet the demand is 7 times greater, the adjusted market ratio is a little more than 155%. You said Jet-A was $2.12 right? $2.12 * 155%= $3.29
WHADYA KNOW! Thats about what you said gas cost near you!
(at $3.25, you are a little ahead of the market, according to your numbers).

Last time I flew, the plane was packed. I have also driven my Durango from coast to coast. The Durango with 4 people got about 60 people miles to the gallon. A fully loaded 737 caries 150 people and burns 2 gallons to the mile, or about 75 people miles to the gallon...So a 737 is a little more efficient than a Durango, much less than a Honda or Subaru counting fuel only and assuming at least two people in each car cited (4 in the Dodge).

Even on Motorcycles, 150 people can not drive seperate vehicles long distances as effeciently as they can fly.

Core 2 Duo:

I thank you for the response very good !!

Core 2 Duo:

Now I just need to find something to run on A1 LOL

Know_it_All:

How about this??? http://www.ronpatrickstuff.com/

ROFLMAO

Core 2 Duo:

OMG that is what we need in life, and what is better than a beetle with 1,350 horsepower, a scooter with 100 horsepower !!!

Patrice:

I think that it's because jet fuel has more inexpensive gasses such as octane and kerosene. They are both inexpensive, i think but i think that its because its easier to get and less expensive.

Big_preditor:

Gasoline is more refined, therefore costs more to produce.jet fuel is like a mix of gasoline and kerosene(used for cooling and lubricating properties).Also if you look at the demand for gasoline...there are alot more cars than planes in the world !!! demand = profit

Big_preditor:

your right planes do use more fuel than cars...they travel farther. jet fuel has to have no moisture content at all ! the way they make shure that doesnt happen is by draining the water out of the bottom of the tank after it has settled to the bottom of the tank (water ways more than fuel) i wouldn't call that more refined.if you multiply 400 million by 30(days) you get 12 billion gallons of auto fuel a month to what you said is 1.7 billion gallons of jet fuel a month....big difference !!!

Pennywise:

It's a matter of supply and demand. There is more demand for the 19 gallons of gasoline than the 4 gallons of jet fuel.

Jet fuel is actually more like home heating oil and kerosene than gasoline and generally fluctuates with the price of home heating oil

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