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When Petrol prices went over £1 per litre 12-13 months ago there was a 2p differential. That increased to around 15p when prices were at their peak. Now Petrol has reduced to under £1 there is still around a 10p differential, with Diesel still around £1.10.
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1There are a number of factors.
To some extent, I think it is supply and demand.
[working from memory here] Raw oil is split into grades. Petrol comes from one grade, Diesel comes from the next heaviest grade.
Petrol is rapidly being overtaken by diesel as the fuel of choice. Don't forget, it is used in jets, lorries, cars, diesel trains and oil-fired power stations.
I think the Government tax it a little higher than petrol because they think it is "less green".
Also the filling stations and their suppliers want to maximise profit. "Petrol prices" are what makes the newspapers. Diesel prices slip under the radar. So the pressure is on low petrol prices rather than the more popular diesel.
I think basically we are getting scr*w*d because Government/Suppliers can get away with it.
Posted on 17 October 2008 |
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212I think it's more to do with stealth road tax ... diesels go further than petrol for the same volume so diesels wear the roads out more ... also think there is higher pollution on diesels even though CO2 emission is lower than petrol for same volume ... also that £500bn has to come from somewhere ... why they couldn't afford to buy Land Rover and Jaguar I don't know ...
Posted on 17 October 2008 | Love 0 loves
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0I suspect GrahamMiller is close.
Although there are somethings that you can do on a refinery to influence the relative production of petrol and diesel from a given amount of crude oil but there are limits..
The UK (driven by high taxation) now has a very high demand for diesel so we have to import diesel from e.g. the USA were is a low demand for diesel and they make more than they consume. The additional costs of shipping and are at least part of the differential.
I guess the limit in the price differential will be when the increased mpg you get from diesel is equal to the percentage price differential - I'd guess around 20%.
Posted on 17 October 2008 | Love 0 loves
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0If it is driven by high taxation and we need to import from the USA, I suggest we look at where France is buying their Diesel from everytime I visit (around 5 times a year) their Desiel is cheaper than their Unleaded! Its a topsy turvey world!!!
Posted on 17 October 2008 | Love 0 loves
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0the taxes are higher on diesel because it is not considered to be as 'green' as petrol.
but generally it is more efficient.
Posted on 17 October 2008 | Love 0 loves
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1My understanding is that Diesel is cheaper in Europe because the European governments believe diesel to be *greener* than petrol. Therefore they tax it less to encourage its use.
Also (being smarter than the UK government) EU governments realise that taxing diesel adds an inflationary pressure to the economy, because all goods are delivered using diesel powered vehicles.
There is a lot of argument about which is greener. Petrol produces more poisonous gases and more CO2, diesel produces more particulates.
A lot of the "which is greener" confusion revolves around the unit of measurement. If you measure per gallon, the figures look better for petrol. If you measure by *distance*, diesel figures get much better.
An important consideration is that diesel particulates are large (compared to say, air molecules) and are easy to trap. We don't trap them because disposal of all the soot becomes a problem. But if we really wanted to clean up our act, this problem could be solved.
End of green lecture:-)
Posted on 18 October 2008 | Love 0 loves
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1I don't want to sound rude here.
But I fail to see how the first question posted has been answered?
How can the difference suddenly shoot up by 15p a litre and then fall to 10p a litre. Surely demand didn't go up by 15% over night for this to occur.
Is it just a case of the government trying to screw as much money out of people that have paid a premium in the first place for a more fuel efficient mode of transport, because it will cost them less in the long run, or so they thought (before the government took a cheap shot at them)
Posted on 22 October 2008 | Love 0 loves
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0If you have an old fashioned type of diesel engine, ie non-common rail, you will be able to use plenty of alternatives to forecourt diesel. Cars such as Peugeot and Mercedes used these engines until well into the last decade so your choice of wheels is vast and cheap.
One alternative fuel I see a lot in rural areas is biodiesel which is usually at a price similar to that for unleaded petrol. Even central heating oil will do albeit at the cost of a fine from the VAT man. Getting the engine re-chipped (if it has an ECU) will help. Or running it on clarified chip fat.
Sadly, modern diesels have far more rarified tastes in fuel, needing a less acidic type (AFAIK).
Posted on 03 November 2008 | Love 0 loves
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