Price of Diesel fuel

chris_page

Am I the only one who is scandalized by the recent hike in price differential between Diesel and petrol. A few months ago, diesel fuel was between 1 and 3 p per litre more than petrol. Since the great fuel price increases in the past year because of the world fuel shortage, diesel is now between 6 and 10p per litre more. When I complained to the Trading Standards through my MP, I was told that it was because there had been an increase in demand for diesel. The whole thing stikes me as a profiteering racket, and no-one else is interested, or has noticed! Any ideas?

Chris Page

Allan87

There is no world fuel shortage, any increase in output from opec would probably saturate the market. Opec are blaming the weak dollar.

Lakeuk

it's strange the way prices are going - I was speaking with one of our contractors from india and for them back home diesel is actually cheap to buy than petrol

vikingaero

chris_page wrote: »

When I complained to the Trading Standards through my MP

I hope toothless Trading Standards will prosecute OPEC. :rolleyes::D

OK seriously now.

The UK generally has a finite capacity to refine oil. Each barrel of oil can only be refined into certain quantities of diesel oil, petroleum etc. With the price of oil being so high, diesel cars are more sought after and more diesel cars are purchased, all being fuelled by a finite supply mechanism.

In winter diesel oil competes with heating oil and the price of diesel will rise. Additionally we make more car journeys in the winter so demand is greater. When it rains fuel consumption increases too with increased drag. Cars are less economic during the winter months as the warm up cycle is longer.

All of which conspire to increase the price of diesel.

chris_page

Vikingaero,

Thanks for this commonsense, and I go along with it part of the way. What is not explained is the fact that for many months, even years, before, the price of diesel was only about 2p different from that of petrol, winter and summer, rain or shine. I saw a Texaco station today with a price differential of 11P. Diesel is cheaper to refine anyway than gasoline. The inescapable conclusion is that the oil companies are charging more for diesel bacause they can. it's a minority market still, although the cost of the fuel will eventually add to our cost of living as it is used by lorries. Do you think that there would have been so muted a response if petrol was 1120p per litre, and diesel 118.9?

Chris Page

thescouselander

chris_page wrote: »

Vikingaero,

Thanks for this commonsense, and I go along with it part of the way. What is not explained is the fact that for many months, even years, before, the price of diesel was only about 2p different from that of petrol, winter and summer, rain or shine. I saw a Texaco station today with a price differential of 11P. Diesel is cheaper to refine anyway than gasoline. The inescapable conclusion is that the oil companies are charging more for diesel bacause they can. it's a minority market still, although the cost of the fuel will eventually add to our cost of living as it is used by lorries. Do you think that there would have been so muted a response if petrol was 1120p per litre, and diesel 118.9?

Chris Page

This has been in the news for some time now - just google "diesel shortage europe" and you'll see. Basically the rise in popularity of diesel is causing a shortage within Europe. Steps are being taken to sort the problem out but for the time being it looks like the gap could get even wider.

Big_Al51

thescouselander wrote: »

This has been in the news for some time now - just google "diesel shortage europe" and you'll see. Basically the rise in popularity of diesel is causing a shortage within Europe. Steps are being taken to sort the problem out but for the time being it looks like the gap could get even wider.

So it's not just the oil companies profiteering then!

As it seems they can charge whatever they like for their product, what incentive is there for them to make up this shortfall in production?

Big_Al51

Hintza

What are the percentages from each barrel of oil does anyone know?

Pew_Pew_Pew_Lasers!

Good God, do none of you realise that the majority of the price of fuel is duty and VAT?

AdrianHi

Pew_Pew_Pew_Lasers! wrote: »

Good God, do none of you realise that the majority of the price of fuel is duty and VAT?

Of course many do, but the above are explanations of why diesel costs more than petrol in Europe.
I've also heard that there is pressure for ships to switch to diesel from whatever oil based fuel they are using now as it's cleaner / more environmentally friendly which will put more pressure on diesel prices.

About 10% of the crude is refined to the "parafins" and "aramatics" which make up diesel and heating oil. 19.6% is gasoline (petrol). When 60% of cars sold in Europe are diesel you can see why there is a problem.
http://www.eia.doe.gov/kids/energyfacts/sources/non-renewable/oil.html