1.       Why is diesel fuel so much more expensive in the US? In MA, it
costs at least 10% more, reducing its advantage.

John, two quick comments:

a) over the course of a year, diesel is NOT more expensive than gasoline. Diesel is more in the winter (when demand for home heating oil is high) but much lower in the summer. Averaged over the year, diesel and gas are within a penny of each other per gallon.

b) Even if diesel were more, it would have to be a *lot* more to negate the advantage. Consider two VWs; if the gasoline version gets 30 mpg and the diesel gets 45 mpg, and gas were $2/gal, then the diesel would come out ahead until diesel exceeded $3/gal. Even if diesel were $.50 more all year round, you'd still be saving money. Unfortunately, 'Merkins ain't so good at math.

jh
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