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Why is the price difference between Diesel and unleaded getting bigger?

I am sure that we all remember the days when Diesel was actually cheaper than unleaded but that seems to be long gone and we have all sort of accepted that. What is going on though with the price difference getting bigger and bigger?

Before the prices started getting cut the gap was 10p, although it had been lower for quite a while before that, but with the lastest cuts announced by Asda the gap is up to 15p!! Every cut seems to be 2 or 3p for unleaded and 1p for Diesel if any.

I honestly don't understand it so maybe someone could explain it to me?
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Comments

  • anewman
    anewman Posts: 9,200 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Supply, demand, cost of production and transportation.
  • BDZ
    BDZ Posts: 6 Forumite
    There is less refining capacity for diesel than for petrol and so supply levels cannot be made high enough for the price to come down as much as we'd like :)
  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    In saying all that I suspect they are taking the mick. The headline is always the cost of petrol and I suspect that diesel is subsidising petrol a bit at the moment. I would be interested in knowing what the differential was when petrol was last at this price which must be within the last 18 months.

    Any websites give historical data?

    Just found one the average price of petrol in 2007 was 95p whilst diesel was 97p. 2p difference whilst it is now 14p!!

    Someone is taking the mickey somewhere, need Martin on the case!!
  • spaceman5
    spaceman5 Posts: 2,716 Forumite
    Hintza wrote: »
    In saying all that I suspect they are taking the mick. The headline is always the cost of petrol and I suspect that diesel is subsidising petrol a bit at the moment. I would be interested in knowing what the differential was when petrol was last at this price which must be within the last 18 months.

    Any websites give historical data?

    Just found one the average price of petrol in 2007 was 95p whilst diesel was 97p. 2p difference whilst it is now 14p!!

    Someone is taking the mickey somewhere, need Martin on the case!!

    :eek: 14p difference, it is only 5p where i come from
    Take every day as it comes!!
  • Yes know what you mean I have had diesel cars for some while and can't believe how dear it became.



    In France diesel is cheaper than unleaded - or was last time I was there.
  • London05 wrote: »

    In France diesel is cheaper than unleaded - or was last time I was there.

    That doesn't mean it's cheaper to produce or buy on the world market.
  • anewman wrote: »
    Supply, demand, cost of production and transportation.

    ....and the highest diesel tax in the world doesn't help.
  • When I switched to a diesel car just over a year ago, the better MPG offset the more expensive cost per litre. As some people like me switched to diesel so they had a more economical car it's quite possible as already said demand is too close to supply for the cost to drop compared to petrol.

    But as the prices diverge it's eating into the benefit I saw which made me decide to switch.

    2 weeks ago Unleaded was 96.6 and Diesel 106.9, now Unleaded is 91.9 and Diesel is STILL 106.9!
  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    Also to take into consideration is that heating oil is in fact diesel and that at this time of year, there's a massive demand from consumers for heating oil to heat their homes and businesses which reduces the amount available for road use.
  • wdyw
    wdyw Posts: 962 Forumite
    Conor wrote: »
    Also to take into consideration is that heating oil is in fact diesel and that at this time of year, there's a massive demand from consumers for heating oil to heat their homes and businesses which reduces the amount available for road use.

    28sec home heating oil has fallen by approx 30% since May. Down from over £500 for 900ltrs to below £370.

    Remember back a few months ago people when the refinery up in Scotland closed for a few days...... we had to get tankers from the continent to bring in diesel to the country as our diesel production facilities are becomming few and far between.

    As someone posted at the top of the thread ...supply and demand.....
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