Petrol vs diesel

[Uncle C]

For years diesel has been dearer, but now they are becoming the same price. Whats that all about?

 

[sashnash]

Its only in the UK, just drove back from Greece and in all the countries I drove through diesel was around 10p cheaper than unleaded.

 

[skipper734]

Less business, less delivery's = surplus of diesel, leading to relatively cheaper prices.
Oh. And I have a diesel motor!

 

[Deano's Right Foot]

Someone on the radio once explained that diesel cars quite quickly became very popular, at a time when diesel was cheaper than unleaded, and also because diesel engines lasted longer and they finally managed to get diesel engines to have a bit of whumph etc. but production of diesel could not catch up with this. Supply and demand then ruled that diesel became more expensive. Now that oil refineries are catching up with demand the price is dropping.

Does that help?

 

[ezzoud]

Someone on the radio once explained that diesel cars quite quickly became very popular, at a time when diesel was cheaper than unleaded, and also because diesel engines lasted longer and they finally managed to get diesel engines to have a bit of whumph etc. but production of diesel could not catch up with this. Supply and demand then ruled that diesel became more expensive. Now that oil refineries are catching up with demand the price is dropping.

Sounds about right. I bought my first diesel car on the same day as the first match at Withdean (friendly v Forest) and at that time diesel was quite a bit cheaper than unleaded , 5p a litre perhaps.

Within months it had become the same price and then got more expensive so it seems I'm to blame - sorry about that.

 

[beorhthelm]

whoever that was on the radio missed some basic details. diesel is cheaper to refine and the reason it became more expensive was years ago they found that it burns alot dirtier than petrol so they used that as an excuse to ramp up the tax. car usage of diesel is probably infintesimal compared to commercial vans, lorry transport and sea shipping use, so i doubt "supply and demand" from domestic cars had any meaningfull impact on price.

 

[scooter1]

whoever that was on the radio missed some basic details. diesel is cheaper to refine and the reason it became more expensive was years ago they found that it burns alot dirtier than petrol so they used that as an excuse to ramp up the tax. car usage of diesel is probably infintesimal compared to commercial vans, lorry transport and sea shipping use, so i doubt "supply and demand" from domestic cars had any meaningfull impact on price.

but that begs the question, why are new diesel cars cheaper to tax than most new petrol cars, as its now based on CO2 emissions. My diesel is £120 per year, whereas the equivalent petrol model is £210

 

[beorhthelm]

because the "dirtiness" of diesel isnt CO2 but other pollutants (sulphur dioxide? basic soot). the focus is all on CO2 now but a while ago it was quality of air in towns/cities near roads.

 

[Bozza]

whoever that was on the radio missed some basic details. diesel is cheaper to refine and the reason it became more expensive was years ago they found that it burns alot dirtier than petrol so they used that as an excuse to ramp up the tax. car usage of diesel is probably infintesimal compared to commercial vans, lorry transport and sea shipping use, so i doubt "supply and demand" from domestic cars had any meaningfull impact on price.

So why has price parity of the two fuels returned recently? Taxation certainly hasn't changed.

 

[beorhthelm]

that i cant answer. possibly petrol refining cost have gone up (capacity was taken off line as the oil price slumped) or the producers/forecourts have just put it up more as oil price increases. you'd need to look at a bunch of graphs comparing petrol/diesel/oil and tax etc to see where the difference is coming from.

 

[supaseagull]

Diesal looks more expensive. However, in the long run litre by litre, it's cheaper as a diesel car uses less fuel than a petrol car does which is why all HGV's use diesel because they get more mileage per litre.

 

[Smythe]

Someone on the radio once explained that diesel cars quite quickly became very popular, at a time when diesel was cheaper than unleaded, and also because diesel engines lasted longer and they finally managed to get diesel engines to have a bit of whumph etc. but production of diesel could not catch up with this. Supply and demand then ruled that diesel became more expensive. Now that oil refineries are catching up with demand the price is dropping.

Does that help?

I think this is correct......refineries were well behind with diesel production particularly a year or so ago, hence the high price, same as when OPEC cut production to raise the price again.

 

[seagullsovergrimsby]

In Grimsby , the petrol station at Morrisons is being refurbished which means all the retailers have put their prices up by 4p a litre , even Tesco. When the work is finished at Morrisons the price will drop back to match each other.

 

[scooter1]

In Grimsby , the petrol station at Morrisons is being refurbished which means all the retailers have put their prices up by 4p a litre , even Tesco. When the work is finished at Morrisons the price will drop back to match each other.

See, I think thats just f***ing cheeky...

 

[seagullsovergrimsby]

See, I think thats just f***ing cheeky...

especially as the refinery is only a few miles away but it still costs more than in Scunny , Lincoln or Hull which are further away.

 

[Papak]

Diesal looks more expensive. However, in the long run litre by litre, it's cheaper as a diesel car uses less fuel than a petrol car does which is why all HGV's use diesel because they get more mileage per litre.

I read a report recently saying you need to drive high mileage (>30,000 per annum) or keep your car for nearly 10 years to get any benefit in owning a diesel car due to higher purchase price and higher fuel costs.