Fuel Price Differences

[JohnM20]

Hi All

Apart from the obvious, that we are being taken for mugs by the rip off government and / or the oil companies, can anyone explain why there is a £0.15 per litre difference between the price of petrol and diesel.

Only a few years ago diesel was cheaper than petrol and we were told of the benefits of using diesel. I believe there was even a tax benefit if you had a diesel car as a company vehicle. Then for a long time both fuels were the same price. Now there is this vast difference. It can't be due to 'production costs' as I cannot see how they could have changed so vastly in such a short time, and transport costs would remain the same whether it was for petrol or diesel.

The other important question is 'what can we do about it' other than consider just how cynical government ministers are when they boast that "petrol prices are coming down" hoping that we might construe this to mean 'fuel' prices and think what a jolly good government they are. The fact that this reduction is nothing to do with them is beside the point.

John M

 

[JoannaLesley]

I agree with you John. What is often overlooked is that almost all of our goods and services are brought to us using diesel transport and the economy won't improve whilst the cost of transporting everything remains so high.

Jo

(PS I also drive a diesel vehicle, so I'm with you on this)

 

[ScouseIan]

In europe its usually the opposite way round. I have been desperate to know the answer to this for a long time.

Don't forget also that over the past 10-15 years governments have been more and more anti-diesel. They even put extra tax on diesel company cars and road tax (I think) blaming it on emissions, then cars started meeting the euro-iv emissions directives and it was dropped. I wonder if its extra tax by the government?

I do have a bit of a conspirational theory on this. If you recall the event a number of years ago when the country ground to a halt when the refineries where blockaded by lorry drivers. I may be completely wrong about this but I seem to recall that the gap between petrol and diesel opened up after that event. In that way, petrol (therefore private car) drivers would then be less supportive of lorry drivers if another similar event were to happen in the future.

Now shoot me down in flames if I'm wrong.

If you never hear from me again on this forum, remember The Pelican Brief............

 

[Gumbo]

Diesel is just a supply an demand issue. Demand excedes Supply so it just can't be refined quick enough with the capacity we have at present. This is going to be quite long term issue so don't expect any respite in the near future. Don't forget to refine diesel you also need to take the Petrol Cut. With no Storage to put the Petrol you can't have the Diesel.

 

[Chrisbee]

In europe its usually the opposite way round. I have been desperate to know the answer to this for a long time.

Don't forget also that over the past 10-15 years governments have been more and more anti-diesel. They even put extra tax on diesel company cars and road tax (I think) blaming it on emissions, then cars started meeting the euro-iv emissions directives and it was dropped. I wonder if its extra tax by the government?

I do have a bit of a conspirational theory on this. If you recall the event a number of years ago when the country ground to a halt when the refineries where blockaded by lorry drivers. I may be completely wrong about this but I seem to recall that the gap between petrol and diesel opened up after that event. In that way, petrol (therefore private car) drivers would then be less supportive of lorry drivers if another similar event were to happen in the future.

Now shoot me down in flames if I'm wrong.

If you never hear from me again on this forum, remember The Pelican Brief............

Just because you're paranoid doesn't mean you aren't being followed.

 

[GeorgeB]

The reason for the disparity in price is simply because the goverment imposes higher fuel duty on diesel than it does on petrol, hence diesel is much more expensive in the UK than it is on the continent.

I normally drive an Audi A4 2 litre TDi auto and average 48.7 mpg solo, currently I'm driving an Audi A4 2 litre FSI petrol auto and am averaging 33.8mpg

The cost logistics are as follows:-

Diesel @ 109.9 per litre = 501.14 per gal @ 48.7 mpg = 10.29 pence per mile.

Petrol 96.9 per litre = 441.86 per gal @ 33.8 mpg = 13.07 pence per mile

So even though diesel is more expensive its cost per mile is cheaper than petrol

 

[ProfJohnL]

Hello George,

You have taken purely the fuel costs comparison, and that gives an indication but the running cost differential when you take all costs into consideration is not so large. Initial purchase cost of diesel cars of equivalent specification are higher, as are the servicing costs, and the service intervals are generally smaller on diesels.

So over all the actual running costs are now much closer. It is still just a bit cheaper to run a diesel, but the break even point is now much closer and is affected by the annual mileage. Low mileages might make petrol more economical, higher mileages favour diesels.

 

[emmerson2]

When petrol was about 75ppl, my LPG was 28ppl. Now petrol is around 95ppl, why is LPG still over 50ppl in some places? When Gordy was chancellor he said that LPG would always remain at or below 50% of petrol. Guess, he lied, huh?

PS,Q. how do you know when a polition is lying?

A.He's breathing!

 

[JTS]

Emmerson

Gordon does not tell lies, he just has an extremely bad memory, I think it is caused by spinning.

Good luck. JTS.

 

[grahamgreatbarr]

I wonder why we are being asked to fit water meters to our houses? Will we be charged extra for water on a camp site?

 

[rob_jax]

Why is diesel more expensive that petrol?

The duty on petrol and diesel is identical at 50.35p per litre and the VAT rate is the same. The difference of 10p or more is down to the pre-tax price of the two fuels.

Before the crude oil price peaked at over $140, the pre-tax price of diesel and petrol in the UK and Europe was pretty much even - this resulted in the UK having petrol and diesel at roughly the same forecourt price. In Europe diesel had been subject to a much lower tax regime, which resulted in the price difference between petrol and diesel.

Crude oil prices are back down near $60, but Chinese and Indian demand for diesel remains very strong - so the pre-tax price of petrol and diesel are vastly different now. This has added 10p or more to the UK price of diesel and brought the price of diesel in Europe almost up to the same price as petrol.

Robert

 

[ScouseIan]

Don't start on water.

We've all been brainwashed into think of Water as a valuable commodity just like gas, oil, etc. The infrastructure to supply it is expensive yes, but the actual product has zero cost. Its all around us, bloody raining all year round, more than ever we are told. So why are 'they' trying to convince us to save it? Just store some more. Storing more water can't be that difficult. Pick an area where there is coal, open mine it, then fill it in a few years later with water (ie rain) and we have a new reservoir.

I know i've exaggerated a bit but this water meter crap really gets my goat. I'm all for charging more for fuel as it makes us conserve a dwindling resource, but only if the whole world is on a level playing field

 

[ProfJohnL]

Hello Ian,

I am not defending the water companies, who continue to have major leak issues, and yet put up prices to fund increased share dividends, In my view Water along with oil, Gas and Electricity supplies are so fundamental to everyone's needs, that the governments policy of privatisation was wrong.

However, whilst water as a resource arrives free, it does cost money to collect, filter and pump it where we want it.

Also we are now paying for the lack of proper investment in the supply structure to keep it efficient.

 

[GeorgeB]

John L,

Sorry to ruin your argument but with Audi vehicles that is not the case.

Audi A4 2 litre TDi (Diesel) Avant Sline Multitronic (Auto) retail on the road,