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Why has the price of Diesel just shot up?

OK, so what's going on with Diesel prices round here (West Dorset) then?! I am amazed to see tonight that its 87.9 or 88.9p whilst unleaded is still 79.9 - heck even super unleaded and bp ultimate petrol are Cheaper than bloomin Diesel! That's at both the local towns across a number of stations, including supermarkets! How can they justify it? Go just 30 miles or so either east or west from here and its way cheaper - even in East Dorset (Ringwood/Wimborne etc) diesel is only 81.9 - a couple of pence dearer than petrol at the most. It's rubbish! :confused:

Comments

  • westernpromise
    westernpromise Posts: 4,833 Forumite
    hibitdat wrote:
    OK, so what's going on with Diesel prices round here (West Dorset) then?! I am amazed to see tonight that its 87.9 or 88.9p whilst unleaded is still 79.9 - heck even super unleaded and bp ultimate petrol are Cheaper than bloomin Diesel! That's at both the local towns across a number of stations, including supermarkets! How can they justify it? Go just 30 miles or so either east or west from here and its way cheaper - even in East Dorset (Ringwood/Wimborne etc) diesel is only 81.9 - a couple of pence dearer than petrol at the most. It's rubbish! :confused:

    It's been snowing, which causes increased demand for heating oil, which causes the price of heating oil to rise, which reduces the amount of diesel available because diesel is heating oil with higher cetane and lower sulphur, which causes the price of diesel to rise.
  • paulie558
    paulie558 Posts: 763 Forumite
    Most of it is just tax anyway.
    A few years back diesel was cheaper than petrol,then a round of tax increases pushed it up about level.But the 2-3 p difference now seems to be oil firms greed.I just laugh,and carry on when I see forcourts charging 8p upwards difference.I'd rather run out and walk.
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I've previously posted University research suggesting that it actually costs 2p/litre more to make diesel than petrol, so a limited price difference IS justifiable.

    And the supply/demand thing re heating oil definitely enlarges the differential each winter.

    It's about 4p different to petrol all around this area. 8p is a bit of a joke!
  • vansboy
    vansboy Posts: 6,483 Forumite
    Part of the Furniture 1,000 Posts
    This 'it's got colder - so demand is up = the price is up too' is a con!

    It's not like it's a surprise, that winter is colder than other times in the year.

    Or that the snow stops the oil from growing & the farmer can't get it out of the ground!!!

    We'll believe ANYTHING that THEY tell us!!

    Whover THEY really are!!

    VB
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