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Stop the Insanity!

Take Diesel off the Commodities Market

Posted May 19 2008 10:30 AM by esanchez 
Filed under: Editorials, Diesel Opinions, Diesel News

I know the Europeans and foreigners laugh at how much we're whining about our fuel prices, when they've been paying roughly double what we have for more than a decade.


But North America and Europe have vastly different cultures, histories and geography, so I find the continental comparison somewhat amusing sometimes. But what's not so amusing is how quickly diesel fuel prices have increased in a relatively short time. Just the other day, I saw #2 diesel prices at over $5.00 a gallon in south Orange County, California. While these prices may be an annoyance for recreational diesel enthusiasts and pickup drivers, they're positively devastating for truckers and others that rely on diesel for their livelihood, which means just about everyone connected with commercial transportation.

I read recently that the "natural" market value of crude oil is about $70 a barrel. Sure, that's a lot higher than it used to be, but nowhere near the approximately $120 a barrel it's trading for now on the commodities exchange. Taking the "froth" of commodities trading out of the equation, we'd probably be paying a little over $2 a gallon for fuel.

Although I don't see this happening for the forseeable future, if ever, I believe for the interest of national and economic security, over-the-highway diesel should be de-listed from the domestic commodities exchange. Now, I'm no economist, and I'm sure the powerful financial sector lobby would quickly kill any legislation or action, but the ripple effects of high diesel prices are being felt throughout the economy, from higher food prices, to higher prices on just about everything, because just about everything in this country is transported by truck.

Certainly, this Fall's elections may have some bearing on what direction this country's energy policy will go. Regardless of who is elected, I hope they have the foresight and wisdom to see that energy independence is more than just a political buzzword to pander to voters. It's something that needed to happen decades ago. Enough talk. It's time for action now. 

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