Why is diesel so much more expensive than unleaded?
Why is diesel so much more expensive than unleaded?
Author
Discussion

Mike400

Original Poster:

1,026 posts

261 months

Tuesday 16th September 2008
quotequote all
well?

Yertis

19,734 posts

296 months

Tuesday 16th September 2008
quotequote all
To offset the range advantage diesels confer, therefore minimising HMG revenue loss that would otherwise occur as more motorists migrant to diesel.

xiphias

5,889 posts

257 months

Tuesday 16th September 2008
quotequote all
Higher production costs due to differing chemistry?

LeoZwalf

2,802 posts

260 months

Tuesday 16th September 2008
quotequote all
It's harder to make?

It's cheaper here in Germany, as it's taxed less AFAIK. It's around 135.9€c/litre IIRC. Was in Luxembourg a couple of weekends ago and it was around 111.9€c/litre!!!

Pigeon

18,535 posts

276 months

Tuesday 16th September 2008
quotequote all
Diesel is naturally more expensive because overall there is more demand for diesel than petrol. Diesel was only ever cheaper because they fiddled the tax to encourage people to drive diesel cars.

ALawson

8,055 posts

281 months

Tuesday 16th September 2008
quotequote all
Supply vs demand?

Nobby Diesel

2,117 posts

281 months

Tuesday 16th September 2008
quotequote all
Because, about 10 or 12 years ago, when hardly anyone drove a diesel car, diesel was considerably cheaper than petrol. The thieving government changed the levy on diesel, as the number of diesel cars grew.
It's just a revenue con trick. Simple.
Diesel is cheaper than petrol everywhere else you go in the world, isn't it?

bobthemonkey

4,211 posts

246 months

Tuesday 16th September 2008
quotequote all
Higher demand for a start. Very little other than cars uses the fractions of crude that constitute unleaded. Diesel, and its constituent fractions are used much more widely.

paulmurr

4,203 posts

242 months

Tuesday 16th September 2008
quotequote all
ALawson said:
Supply vs demand?
I believe the above is true.

Timmy35

13,014 posts

228 months

Tuesday 16th September 2008
quotequote all
It could be supply and demand, the fact that we have only a certain refining capacity in Europe for diesel, and alot of demand for it as a result of dieselisation, meaning there's a transatlantic trade with petrol going one way and diesel the other. The additional costs of this are reflected in the price.

But the truth is that it's the Greedy oil companies that are infact run by the Lizard men who are hoarding the diesel under the ice caps to run their planet eating invasion space-craft on. They use diesel because the petrol spaceship ran out just past Jupiter and there isn't a filling station for miles.

off_again

13,917 posts

264 months

Tuesday 16th September 2008
quotequote all
It takes more oil to produce a gallon of diesel than it does a gallon of unleaded petrol.

Though its not quite as simple as that. For example, its possible to refine lower quality crude into diesel, while petrol needs higher quality. So the difference should be outweighed here. I am also not sure if there is a taxation / revenue difference between petrol and diesel, but there is still a big difference between the volumes sold though. A few years ago it used to be 2 to 1, but I suspect this is different these days.

Given that oil costs much more than it did, this does explain some of the differences these days as they are amplified by the current higher crude costs.

Mike400

Original Poster:

1,026 posts

261 months

Tuesday 16th September 2008
quotequote all
lol clear as mud then

Ill just blame Mr Brown, seems to be the done thing nowadays lol

mybrainhurts

90,809 posts

285 months

Tuesday 16th September 2008
quotequote all
paulmurr said:
ALawson said:
Supply vs demand?
I believe the above is true.
So do I...

They can't make enough to satisfy demand, so the price rises.

The Ben

1,623 posts

247 months

Tuesday 16th September 2008
quotequote all
mybrainhurts said:
paulmurr said:
ALawson said:
Supply vs demand?
I believe the above is true.
So do I...

They DONT make enough to satisfy demand, so the price rises.
EFA

Baby Huey

4,881 posts

229 months

Tuesday 16th September 2008
quotequote all
The Chinese are using ever inceasing amounts of diesel as their economy grows, so you will soon be able to buy a plasma TV for less than a gallon of diesel.

Timmy35

13,014 posts

228 months

Tuesday 16th September 2008
quotequote all
The Ben said:
mybrainhurts said:
paulmurr said:
ALawson said:
Supply vs demand?
I believe the above is true.
So do I...

They DONT make enough to satisfy demand, so the price rises.
EFA
Yeah? You try getting planning permission past the Greenies to build any more refining capacity in Western Europe.

Mojocvh

16,837 posts

292 months

Tuesday 16th September 2008
quotequote all

blueyes

4,799 posts

282 months

Tuesday 16th September 2008
quotequote all
LeoZwalf said:
It's cheaper here in Germany, as it's taxed less AFAIK. It's around 135.9€c/litre IIRC. Was in Luxembourg a couple of weekends ago and it was around 111.9€c/litre!!!
The UK is the only country in the EU/EEC where diesel is more expensive than petrol.

Outside Europia I think there's one other scandie country that's in the same situation.


Gordon is a .

Simpo Two

92,955 posts

295 months

Tuesday 16th September 2008
quotequote all
Pigeon said:
Diesel is naturally more expensive because overall there is more demand for diesel than petrol. Diesel was only ever cheaper because they fiddled the tax to encourage people to drive diesel cars.
And when they were hooked, whacked it back uu again.

If we all used LPG, that would have to be £1.12 a litre as well to replace lost revenue.

Anyway, if there is such demand for diesel, why isn't the industry gearing up to cope? When there's high demand for, say, plasma screens, they build more factories to punt them out cheaper.

Pigeon

18,535 posts

276 months

Wednesday 17th September 2008
quotequote all
Simpo Two said:
Pigeon said:
Diesel is naturally more expensive because overall there is more demand for diesel than petrol. Diesel was only ever cheaper because they fiddled the tax to encourage people to drive diesel cars.
And when they were hooked, whacked it back uu again.

If we all used LPG, that would have to be £1.12 a litre as well to replace lost revenue.

Anyway, if there is such demand for diesel, why isn't the industry gearing up to cope? When there's high demand for, say, plasma screens, they build more factories to punt them out cheaper.
It's because it comes down to what proportions of different products you can get out of a given amount of crude oil versus what demand there is for those products.