

VW wants more incentives









Source: The Detroit News

Comments     Threshold


RE: Whole 6 cents?
By Monkey's Uncle on 8/23/2013 4:42:32 PM , Rating: 2
You can only tweak supply just so much before you have undesired consequences.

When you consider that both gasoline and diesel from the same barrel of crude, attempting to reduce the supply of gas will also have an undesired effect of reducing the supply of diesel. They are tightly interrelated. Yes, refiners can tweak the amounts of each produced during crude distillation, but the fact is that they are both produced at the same time. So if you want to reduce the supply of gas, but not diesel, what do you do with the gas that will be produced anyway? Selling it would be the smart thing to do and to sell it, you will need to price it lower to attract demand.

Economics 101.

