So another week goes by and the price craze continues. First its prices rising to levels unseen then the news on Nigeria comes out to make the oil markets react with a $2/barrel drop - If there is a lesson to be learned, we think it is that the wild swings in prices and the drastic changes from week to week are probably here to stay for the unforseen future - Interestingly - and this is something we think readers should keep a close eye on, is whether or not the Nigeria news will have as great an impact on Gasoline prices as it has had on Oil prices or are we in a place right now where the Gasoline supply-demand picture is independent of its Oil brethren…

Some people ask us what the difference is between Diesel Fuel and Gasoline and why the Cap offers are different for the 2 fuels. A short answer on the differences is 2 fold -

1. how they are made
2. the types of engines they are used in.

From a price perspective - Diesel Fuel is priced similar to heating oil because the refining process is nearly identical, thereby making the supply/demand curves react in tandem. That being said, when we quote customers for Cap rates on Diesel or Unleaded the Cap level and up front fees might be very different because we must take these factors into consideration. For more information on Diesel fuel, please check out the Wikipedia definition by clicking here.

So I’m sure we are all familiar with the recent headlines about rising gasoline prices - CNN Money for example and it is a real concern. People could be spending hundreds of dollars more a month just because prices at the pump are rising. What is even scarier is the great unknown as to how high these prices can go and for how long they can do so. Consumers (businesses and people) spend thousands of dollars a year on gasoline, as a percentage of income, thats pretty significant - so now we have GasLimit. Please feel free to email us at sales@gaslimit.com to find out how we can help you.