Why is diesel suddenly 5p to 12p (depending on garage) dearer than unleaded? To do with the hurricanes affecting refineries?

Ask a certain Scottish (rymes with blunt) called Brown.

Chris

To my mind, it's clearly because the Treasury have noticed more people are buying diesel cars. It never used to be more expensive than unleaded.

I haven't seen another country where this is the case either. When I was in Canada over the summer, it was 2/3 the price of petrol. This was the same when I was in France, although that was a few years ago.

And also, correct me if I'm wrong, but isn't it cheaper to produce than petrol, because it isn't as refined? This is bringing GCSE Chemistry from the back of my head, so it might be a little fuzzy

Steve

The duty on diesel is 2p more than petrol...so even allowing for vat on that 2p I would say the the Garages and fuel industry are cashing in again

Answer to the question about Hurricanes- Yes they do, as the oil companies shut the platforms down till the hurricane has passed therby there is no production, which means a demand on the available resources driving up prices, all be it temp till the platform gets back up and running.

I am sure that about 6 years ago that the chancellor, said that the price difference between diesel & petrol would be approx 2 p per liter, but whenever he puts prices up he does NOT differentaite between the 2 he just hikes FUEL, so Where has the difference gone ?

The demand for diesel has risen significantly in the last few years but there are no new refineries yet so thats why it's gone up more than unleaded.

Duty on diesel has been a constant 2p more than unleaded for several years. Any greater difference between the two fuels is nothing to do with the government

Demand is outstripping supply. Simple economics, which everyone convieniently blames on the Government instead of the oil companies.

the demand for diesel will be likely to fall .

IMHO the biggest CAR use for it is from fleet and as from the new year ALL diesel fleet cars will have an additional 3% on the company car tax bill - they will still be good for the companies but I can see that any drivers that have the sense to work out the tax bill will start to want petrol again

Dammit - should have gone for the cheaper V6 Mondy!

Chris

Dammit - should have gone for the cheaper V6 Mondy!

Chris

I suspect it wont make THAT much differance

Demand is outstripping supply. Simple economics, which everyone convieniently blames on the Government instead of the oil companies.

I am sure the government are cashing in somewhere but what you say is true. The oil refineries are mostly set up for refining petrol as the oil companies have been taken off guard with the diesel demand so there ain't enough. Also, the demand for petrol has gone down because of this but they need the refineries running full tilt to remain economic so they end up with too much petrol and prices are hence lower. This is only short term though because petrol prices rise again by a little once the reserve runs out if the platforms are still down.

Also, the demand for petrol has gone down because of this

Are you sure about this? With the number of new cars appearing on our roads each day I'd be surprised if demand had gone down .... stabilised maybe

Chris

Surely it can't be supply and demand - diesel is easier (less refined) to make than petrol. Could it be that it's just so that the petrol companies and the government can say "PETROL prices haven't gone up" which is strictly true, but diesel prices have.

It was only 3/4 years ago that diesel was 5p/litre cheaper than petrol :( Mind you if that were still the case what with the improvements in diesel refinement and power I don't suppose anyone would ever buy a petrol!

When you bear in mind just which forms of transport use diesel, it's mostly trucks and trains. Train diesel usage must have dropped as their are more powered by electric now and when you consider the mileage of a truck and how much fuel they use, plus the fact that we have a lot more foreign trucks on the road who don't fill up in this country, I'm not convinced that the increased car diesel usage would actually make an impression. It sounds like a treasury con to me. Or am I being cynical?

Demand is outstripping supply. Simple economics, which everyone convieniently blames on the Government instead of the oil companies.

It's got very little to do with the oil companies, despite their huge profits fuel costs less than 30p a litre, it's the governmrnt who add a 300% tax on it. I'd say it's the fault of the governent with everyone conveniently blaming the oil companies, the British are too meak, dumb or generally stupid to do anything than just whinge about it into their beer. Yes Brown is a man who in my mind definately rhymes with blunt.

Diesel also more expensive than unleaded in the U.S

Demand is outstripping supply. Simple economics, which everyone convieniently blames on the Government instead of the oil companies.

Diesel was always much cheaper than petrol in Europe. Cyprus is an example. And now it's more expensive. In the UAE, diesel is MUCH more expensive than unleaded, simply because there is just so much more construction going on here than anywhere else in the world, and this country is just overloaded with trailer trucks, trucks & tractors.

Of course the Government is to blame. Diesel was originally produced just for use by farmers who had their tractors to do their job in the primary industry. They (the Government) have noticed the increased popularity in diesel cars since they started turbo-charging them, mainly because you get that low-end torque and you don't burn so much. When demand goes up, so does the price you pay, regardless of supply.

I feel though the price of diesel will go up much higher than it is now, and much higher than petrol. By then, it will be so high the MPG figures of a diesel won't justify the cost of it.

Are you sure about this? With the number of new cars appearing on our roads each day I'd be surprised if demand had gone down .... stabilised maybe

Chris

The number of diesel cars being purchased has sky rocketed over the last couple of years. Over 1/3 of all new cars are now diesel. The rate of change over to diesel is higher than the rate of increase of new cars going onto the road each year. Petrol stations have also changed so that diesel is available at every pump whereas before it wasn't the case. Petrol demand must be going down to some extent. Also diesels typically last longer than their petrol counterparts so petrol cars dissapear from the roads before diesel cars do.

I'm not convinced that the increased car diesel usage would actually make an impression. It sounds like a treasury con to me. Or am I being cynical?

The treasury HAS NOT changed the relative levels of duty between unleaded and diesel for several years.

The increasing gap between the two is entirely down to fuel companies choosing to try more. They say it is because demand has increased above supply.

The UK now has around a 30% diesel new car share, whereas France has 50-55%, Germany 45%, and the rest of Europe around 45-50% market share.

Oil companies have not increased production to counter this, and although petrol stations have increased pumps numbers diesel is still under supported.

Diesel is the way forward for emmisions and technological advances and will continue to grow its market share...even the US is waking up to its benefits and advantages. Only when the oil companies build new refineries will diesel drop in price as the demand is outstripping supply, and no blaming the Governments can change that.

Welcome to winter. Diesel always goes up in price as it gets colder as it's a heavy oil also used for heating. The 2p more tax on diesel is all relative you pay the same as a petrol car as your using less litres per mile!

Also an interesting point is that the higher fuel prices this year has seen a drop in congestion levels around the country- it's not consistant but in gerneral a percentage drop... Read into that what you will!

I'm not sure why zoidberg (and others?) blame the Government for "higher duty" on diesel. It isn't true! http://www.hm-treasury.gov.uk/budget/budget_05/press_notices/bud_bud05_press02.cfm shows that the duty on ULSP and ULSD is exactly the same. And it has been the same for a good length of time.

The difference in price is due to the oil companies and supply/demand, not due to Government interference.

With the North Sea production falling the UK now imports more crude, as well as that, Oil companies don't have enough refining capacity for ULSD, we now import a high percentage of ULSD ( To meet EU legislation ) as our N.S crude is very high in H2S.

This won't improve in the medium term.

I'm not sure why zoidberg (and others?) blame the Government for "higher duty" on diesel. It isn't true! http://www.hm-treasury.gov.uk/budget/budget_05/press_notices/bud_bud05_press02.cfm shows that the duty on ULSP and ULSD is exactly the same. And it has been the same for a good length of time.

The difference in price is due to the oil companies and supply/demand' date=' not due to Government interference.[/quote']

agreed

I'm also confused why so many people think the good old game of shaft the motorist was invented by the current lot - its been a government game for many many years , certainly not just the last 8.

As always it any old excuse to make a political whinge.

We all get shafted by every government what ever type they are - its just the HOW we get shafted that changes - they're all in it for number one and we dont matter a bit...all the time the old labour / tory fight continues they make the most of the bunch of mugs called the british public not noticing reality :(

after the exertion of all that - scroot shuffles off to bed - muttering darkly to himself :(

As relevant as the refinery question is, it's the treasury who intercept the vast majority of the cost. If cars ran predominaently on sea water IT would be the most expensive fuel, the goverment (cons or Lab) would see to it.

Exactly!

It matters hardly a bit that there isn't enough refining capacity for Diesel etc. Fuel is expensive because about 60p of the cost a litre of fuel is tax, the increases by the oil companies are almost insignificant. As the tax is by far the largest element in the cost it is indeed the government who are robbing us, the oil companies are the least of the problem. Nothing else in this country has that rate of taxation.