The price of diesel

don_don
don_don Posts: 1,007
edited June 2008 in Campaign
Slightly 'off-topic' for a cycling forum, but since many of us own cars as well...

I was wondering why diesel fuel is more expensive than petrol, apparently now enough so to eliminate the fuel-efficiency advantage over petrol. I can't imagine that, in the quantities they make, that its to do with being more difficult to process.

The cynic in me thinks that its because diesel cars are generally more economical, they sell less diesel, so hike the price up to make it as profitable as petrol overall.

Any oil-industry insiders here shed any light :?:

BTW, I'm not a car lover. If the price of fuel encourages more cycling I'm all for it :)

Comments

  • LangerDan
    LangerDan Posts: 6,132
    There has been a massive increase in demand for diesel and other similar distillates such as aviation fuel over the past decade - EU diesel demand is over twice the gasoline demand- but diesel production from the refineries has not kept pace. Distillates aren't more difficult to produce but refineries tend to be focussed around production of certain categories of petroleum products and you can't switch from, say, optimised production of gasoline to diesel overnight. There is also the issue of ever tightening fuel specs for diesel e.g. sulphur content, which further reduces the available refining capacity.

    More demand, less available supply = sellers market.

    Not to mention the undoubted gouging that goes on.
    'This week I 'ave been mostly been climbing like Basso - Shirley Basso.'
  • OffTheBackAdam
    OffTheBackAdam Posts: 1,869
    There's also, naturally, the question of taxation.
    Diesel, in the UK, used to attract a lower level of excise duty, as Governments attracted motorists away from petrol, now so many have switched to diesel, it doesn't.
    Doubtless a similar boom in vehicles fueled by LPG would lead in turn to an increase in duty there too.
    Remember that you are an Englishman and thus have won first prize in the lottery of life.
  • don_don
    don_don Posts: 1,007
    Good points guys, many thanks :D

    I had completely forgotten about the road haulage industry for some reason. I do wonder how we will keep the wheels turning, as it were, if prices go up quickly enough to put more transport companies out of business. Presumably the big supermarkets will be protected by their size, so food deliveries won't be too much of an issue. Everything else will get that much more expensive I guess :(

    I am torn between the thought that we drive and pollute too much anyway, and knowing that everyone will suffer from the price increases, regardless of whether they drive or not.

    Then you've got the cost of gas and electricity and all that, but maybe that's another topic altogether :!:
  • pyro_maniac
    pyro_maniac Posts: 232
    deliveries to supermarkets will still go ahead, but as most supermarket deliveries are subbed out to other companies the shops will increase their prices to cover the transportation costs, i think it will get worse before there is any chance of it getting better
  • OffTheBackAdam
    OffTheBackAdam Posts: 1,869
    don_don wrote:
    I am torn between the thought that we drive and pollute too much anyway, and knowing that everyone will suffer from the price increases, regardless of whether they drive or not.
    Then you've got the cost of gas and electricity and all that, but maybe that's another topic altogether :!:
    Drive a modern car with a catalytic converter in a big city and what comes out of your exhaust is of better quality than what goes in via your air inlet!
    The cost of electricity is not entirely another topic, as the majority is produced by burning fossil fuel of one sort or another.
    Remember that you are an Englishman and thus have won first prize in the lottery of life.
  • grayo59
    grayo59 Posts: 722
    On an mpg basis the 10% difference in petrol and diesel prices is quite small compared with the approximate 25/30% difference in economy between similar sized petrol/diesel cars.

    My Pug 406 2.0 diesel estate is a heavy old lump but does 40mpg on Mrs Grayo's local kid running/commuting work and did 52 mpg, 5 up with camping gear at a largely cruise controlled 70/75mph 700 mile motorway run to the lake district and back.

    My 1.3 turbo diesel Fiat doblo van averages similar figures with a 400L/kg tank of water in the back.

    My Rover 600 2.0 Honda engined manual petrol car did 26mpg local and 35 mpg on runs.
    My Honda Accord 2.2 Estate automatic did 22mpg local and 33mpg on runs.

    I'm quids in! (and still looking at making my own legal bio diesel too)
    Still appreciable savings IMO.
    __________________
    ......heading for the box, but not too soon I hope!
  • LingfieldXC
    LingfieldXC Posts: 134
    a lot of fuel efficiency can be down to the driver. My dad can get 40mpg in our diesel fiat punto, mum can get 52mpg and I can do 60! (on a trip to devon) When trying mum can get 60 on our dicovery which is diesel too, but that is only on motorways, as soon as you hit country lanes it is down to 40.
    Your'e never alone with schizophrenia.
  • nwallace
    nwallace Posts: 1,465
    The mpg is the flaw in the carbon per km calculations.

    A few days ago there was a report on a local to Tiree buying a vehicle in Band A, so achieving the 0 VED rate. This is of course based on a combination of the vehicles claimed ECE of 80mpg and emissions per gallon of fuel burnt.
    He gets 66mpg out of it on Tirees roads, he could drive it in such a manner that its emissions are worse than a band F vehicle.

    Any how. I reckon my current commuting transport gets around 10mpg of diesel, it does have a seating capacity of 45 though.
    Do Nellyphants count?

    Commuter: FCN 9
    Cheapo Roadie: FCN 5
    Off Road: FCN 11

    +1 when I don't get round to shaving for x days
  • beverick
    beverick Posts: 3,461
    a lot of fuel efficiency can be down to the driver. My dad can get 40mpg in our diesel fiat punto, mum can get 52mpg and I can do 60! (on a trip to devon) When trying mum can get 60 on our dicovery which is diesel too, but that is only on motorways, as soon as you hit country lanes it is down to 40.

    Agreed. A colleague of mine has the identical vehicle to me other than the fact I have a 2.0l petrol and he has a 2.0l diesel.

    We measured the economy of the cars earlier this year and I can get 41/43 mpg on a motorway run (especially if I ignore cruise control) and 34/36 around town. My colleage gets 51-53mpg on a run and 38-40 around town.

    Basically, I make up the 10% premium on diesel by driving more economically.

    Mind you, he took delivery of a 2.0l petrol on Monday although, as he drives like a nutter, I expect his mpg to fall to something like 38 and 28mpg respectively.

    His wallet's in for a shock me thinks!

    Bob
  • pjm-84
    pjm-84 Posts: 819
    On an mpg basis the 10% difference in petrol and diesel prices is quite small compared with the approximate 25/30% difference in economy between similar sized petrol/diesel cars.

    The wife is picking up her new car on Saturday and we've gone for the petrol model. Offical consumption figures for the petrol model are 34.9mpg whilst the diesel model is 39.2mpg. Price difference at the pumps equates to around 11 to 12% so like for like fuel costs will be near enough equal. The benefit of the petrol model is the rather large discount available on the vehicle
    Paul