Diesel demand vs supply

[bb150297]

Weighing up petrol v diesel for my next car and probably going diesel for the 1st time (esp if I go for a Fabia).

Slight concern over diesel price hikes or even shortages over the next few years as increased diesel demand relative to petrol is not met by production (refining capacity constraints and the nature of crude oil and simple supply vs demand).

Anyone have any thoughts on whether this is likely to be a major issue for UK drivers in the next 5 years or so (the length of time I'd budget to keep this car).

This is not meant to be a thread about absolute prices, taxation etc. btw

[Nathanio]

Don't know about around you but diesel round me has been realitvely static of late in regards to price changes as petrol has been going up. This time last year derv was nearly 14p difference round me and on average 12p. Now it is down to between 5-7p difference.

It seems more people are downsizing to smaller petrol cars (such as the Fiat 500) or go from the v6's to more economical 1.8Ts (for instance). With more people moving back to petrol I think means we might see it level back out again.

No longer do you need to stellar mileages to make derv work for you.

[WW_VRS]

Supply vs demand, or more the 'tax cr*p out of popular fuel as the govt can' - personally the second part is a LARGE element of the derv cost in the UK.

90 Eurocents/liter on continent, 1GBP/liter in UK at same time.. Tax is the reason.

[Matt Bodycombe]

Buying new I would steer clear of Diesel for cost reasons unless you do big mileages. Many people prefer the relaxed torque of Diesel though and buy them new regardless. The cost issue becomes less of a factor second hand. I still read that Diesel cars have better residuals but don't know if this is true.

Diesel is pretty static my end too although about 9p a litre more than unleaded.

[Kandy]

Wouldn't worry either way - as soon as the Global economy looks like it's picking up, oil will go back through the roof again - £2/litre before too long no doubt. I think that diesel will always be priced to just offset any extra mpg. They are have/created more diesel refining capacity - that's what the industrial action 'jobs for British workers' a while back was about.

[Matt Bodycombe]

Fair point Kandy but what people don't realise is that most modern petrols especially direct injection engines run better on Super Unleaded.