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NO DEALS ON DIESEL; Even as gas prices slip, oil burners continue to pay.(News)
Byline: ROGER HART
Hurricanes Katrina and Rita dealt a double blow to Gulf oil production and consumers slammed hard in the wallet in the days and weeks following the storms. While gasoline prices have retreated somewhat, diesel prices remain at all-time highs, with diesel running about $1 more per gallon than mid-grade unleaded in some areas.
While Katrina and Rita are to blame, so is the old saw of supply and demand-especially in 10 Midwest states that consume more than 30 percent of the country's diesel fuel due to agriculture operations. With the fall harvest one of the peak diesel fuel usage times, the supply of diesel is just barely keeping up with demand.
"After the hurricanes hit, we were able to see some gas supplies come to the States from Europe to help make up for the loss,'' said Scott Dean, a spokesman for oil giant BP. "But with Europe's high demand for diesel fuel, we ...
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