The current hike in the price of oil is due mainly to speculation based on increased demand rather than on demand itself. Medium terms most analysts tend to think it will drop back to around $80 per barrel.

The reason Diesel has shot up is due to shortage of supply for raffineries. From what I have read that is not expected to last more than a few months when it should start drifting back towards petrol prices + 5p/L.

Finally another consideration is that green taxes are here to stay and are only likely to increase over the next few years regardles sof who is in power. And that means that Petrol owners will pay more and more...

The current hike in the price of oil is due mainly to speculation based on increased demand rather than on demand itself. Medium terms most analysts tend to think it will drop back to around $80 per barrel.

The reason Diesel has shot up is due to shortage of supply for raffineries. From what I have read that is not expected to last more than a few months when it should start drifting back towards petrol prices + 5p/L.

Finally another consideration is that green taxes are here to stay and are only likely to increase over the next few years regardles sof who is in power. And that means that Petrol owners will pay more and more...

Was doing a bit of research recently and came across a quote from a very respected oil industry analyst in July 2006, went along the line of - "current crude price of $80/barrel is unsustainable and we should expect to see a fairly rapid back track to around £70 by the end of the year and expect $56 by summer 2007" - just goes to show that the only predictable thing about predicting is that it is unpredictable:rolleyes:

This debate could rage for ages. I have worked out some facts for my own circumstances.

I get 53 mpg average out of mine which is handily the book mpg too so it makes for a good comparison to the same petrol variant which gets 40mpg according to the same book.

Over 1000 miles the fuel costs are;

Diesel £111.51 @£1.30

Petrol £130.70 @£1.15

Over a year this represents a saving over petrol of £767.9. On top of this, my road tax is £55 a year cheaper (After 2010 it's £135 cheaper). The performance is near identical and I can run it on WVO. Servicing and insurance are identical and it's a lot more tuneable The deal that was done on the car meant that it cost no more than the petrol although it is £1200 up on the book price so for Joe Public it will be about 18 - 20 months before it's worth running a derv over a petrol. At current prices the neutral point is 62k (Just based on fuel) or 58.3k (Fuel and tax) and so anyone not going to be doing that mileage would be better off with a petrol at current pump prices. My circumstances dictate that I am still far better off running a Derv especially as I don't really pay £1.30 for a litre of fuel (More like £1.22 with the bio I use).

Obviously this isn't going to be the same for everyone and I am sure that the same discussion raged a few years ago the other way. You can work out what's best for you as an individual just like I did and that probably what you should do. You might surprise yourself!

Something else to think about. No-one can honestly predict what will happen in a months time or a years time with the price of fuel. One thing is sure, there are too many cars on the road and the way we use our cars will have to change sooner rather than later. It's not going to be pleasant for anyone but it will have to happen.

Oil is on borrowed time...