Question why diesel dearer than petrol ???

imperial21 · Post by **imperial21** » 20 Mar 2011, 19:58

In these days of expensive fuels, why is diesel so much more expensive than petrol ? when i had my first diesel a bx, diesel was cheaper roughly 5p a ltr less than petrol, now i am seeing it averagly 7p ltr dearer than petrol???? Yet diesel is less refined than petrol hence why the V5 calls it heavy oil.
I want to do my bit to sticking two fingers up to the fuel comapanys and go the veggie root once i have bought a good old xud xantia as i would nt run my hdi on veg !
I am off my soap box what do you think ?

HDI · Post by **HDI** » 20 Mar 2011, 20:02

Simple, tax !! Diesel powered vehicles are more economical than petrol so use less fuel and would pay less tax on equal prices. So Diesel is priced higher to compensate ! Only in the UK, what a sh1t hole !

Toby_HDi · Post by **Toby_HDi** » 20 Mar 2011, 20:08

^^^

That and the fact that as fuel prices have increased in the past, and continue to do so, more and more people switch to diesel for the economy.

Simple market force - Supply and Demand.

Post by **myglaren** » 20 Mar 2011, 20:47

As soon as I had bought my first diesel, a BX 19 RD, they put the annual road fund licence up and started pushing the price per Litre up too

Xaccers · Post by **Xaccers** » 20 Mar 2011, 21:26

HDI wrote:Simple, tax !! Diesel powered vehicles are more economical than petrol so use less fuel and would pay less tax on equal prices. So Diesel is priced higher to compensate ! Only in the UK, what a sh1t hole !

Diesel has the same rate of fuel duty as petrol
The price is down to the fuel companies.

Post by **myglaren** » 20 Mar 2011, 21:31

Xac wrote:
HDI wrote:Simple, tax !! Diesel powered vehicles are more economical than petrol so use less fuel and would pay less tax on equal prices. So Diesel is priced higher to compensate ! Only in the UK, what a sh1t hole !
Diesel has the same rate of fuel duty as petrol
The price is down to the fuel companies.

But it did used to be lower (the fuel duty) to encourage people to buy and use diesel vehicles as they were considered more fuel efficient (undeniable) and friendlier to the environment.

As they were perceived as noisy, smelly, sluggish and more expensive to buy, some incentive was required

Xaccers · Post by **Xaccers** » 20 Mar 2011, 21:43

Diesel used to be considerably cheaper than petrol as there was no real demand for it, but in the 80s diesel cars were improved and became popular because it was cheaper, the demand went up and so the price went up, and very quickly the duty on derv became higher than on petrol due to the smog it produced but only by a few pence, then ULSD was introduced which narrowed the gap and then they applied the same duty to each as they still do today.
There's more demand globally for diesel and that is why it is more expensive.
Nothing to do with tax, it's all about demand.

andmcit · Post by **andmcit** » 20 Mar 2011, 21:50

The match of DERV to Unleaded was a Budget slight of hand to 'standardise'
the duty on all fuels by the last mob in Government - one of Gord's great
weazes among the many stealth taxes. The markets dictate the noticeable
differences in the two rates as Xac says.

They weren't going to reduce Unleaded to match now were they?

I wouldn't trust a single politician whatever their persuasion; there are more
honorable estate agents and equities bankers and that's stretching things
somewhat.

Notice how LPG is getting so damned expensive now folk have been driven to
convert their unleaded cars; about 1-2 years back it was half it's current rate.