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Author: Subject: Why not diesel
DarrenW

posted on 19/11/08 at 10:18 PM Reply With Quote
Why not diesel

I know Diesel is taxed more than unleaded, but this doesnt explain why unleaded can drop significantly whilst diesel stays high. Anyone know why? It bugs me that Asda can drop unleaded to £0.909 today and Diesel delta grows to £0.16 per litre higher.






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mookaloid

posted on 19/11/08 at 10:22 PM Reply With Quote
is it cos it's smelly?





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smart51

posted on 19/11/08 at 10:24 PM Reply With Quote
Demand for diesel has risen steadily over the last 20 years as people switch from petrol. Perhaps its supply and demand.

Maybe their turn over of diesel is slow and they're still using up a lorry load of expensive stuff from a few weeks ago. next time they have a delivery, the price might go down.

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DarrenW

posted on 19/11/08 at 10:28 PM Reply With Quote
I dont buy that at all. We have got used to Diesel being 5 or 6p more per litre, however as unleaded has been dropping a lot, Diesel hasnt. Im sure it has been said that Diesel doesnt cost more to produce, and i dont recall a tax hike recently so why is the gap getting so big. Surely Diesel should be down to £0.96 ish by now.






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mark chandler

posted on 19/11/08 at 10:29 PM Reply With Quote
When I started driving diesel was cheaper than petrol, it was only once diesel cars started to proliferate that it became expensive.

The government felt it was losing out on tax revenue so tweaked the tax on diesel up to keep the coffers full.

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coozer

posted on 19/11/08 at 10:32 PM Reply With Quote
Europeans use diesel as heating oil, keeps the price artificially high. Thats my take on it anyway.

The grey box used to say as demand went down in the summer (warm) so does the price, but thats clearly not the case this year at least.

Anyway still a derv fan so picking me 'new' 45 up Friday

Steve





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1980 Z750

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coozer

posted on 19/11/08 at 10:32 PM Reply With Quote
Europeans use diesel as heating oil, keeps the price artificially high. Thats my take on it anyway.

The grey box used to say as demand went down in the summer (warm) so does the price, but thats clearly not the case this year at least.

Anyway still a derv fan so pick me 'new' 45 up Friday

Steve





1972 V8 Jago

1980 Z750

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Mark G

posted on 19/11/08 at 10:41 PM Reply With Quote
You still go further per penny than a petrol car equivilant any way so I'd be happy if I were you. If I could afford to buy a new car at the mo I'd still buy a diesel.






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hobbsy

posted on 19/11/08 at 11:34 PM Reply With Quote
Its all down to supply and demand, it always used to be cheaper and as a lot of people know the diesel engine was original designed to run on peanut oil or similar. It was only the petrochemical companies that pressured the necessary changes to make it run on dino diesel.

Anyway its mostly down to new car sales (in the UK at least) going from something like 15 / 20% in 1998 to over 50% in 2008 plus India and China wanting loads to do their industrial sh1t etc...

Its a PITA I know as the gap seems to be getting bigger and bigger.

Its almost at the point where the newer tech petrol engines (eg combined 35 to 40mpg) are now approx equiv to the 50mpg diesels due to the price differential.

Although that said I'd still rather have a modern turbo diesel as the daily tin top as i like ~350ft/lb or torque at about 2krpm

Although there is more expensive bits to go wrong (extreme pressure injection systems - pumps / injectors etc, turbos - had one go on my Bimmer etc).

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Ben_Copeland

posted on 20/11/08 at 07:05 AM Reply With Quote
Sat near a petrol station right now. Petrol 93.9
Diesel 107.9 !!

F***ers!
Good job I don't pay for my everyday fuel (diesel)....





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JoelP

posted on 20/11/08 at 07:27 AM Reply With Quote
i thought that yesterday too darren, when asda petrol dropped 2p to 90.0 but the diesel only dropped a penny to 105.9. Pretty annoying!
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iank

posted on 20/11/08 at 07:31 AM Reply With Quote
It can't be simple supply and demand since the change is only in the last 6 months and all car sales have been flat in that time. Fuel oil has been around forever.

Before the massive increases earlier in the year they were 5-6p different, now after the prices have dropped back again, as Darren says, the differential has been kept up at 12-16p.

The only thing I can think of is that the petrol companies have taken the opportunity to reprice, either they felt they were making a 'loss' on diesel before, or they are taking advantage as the press were bringing pressure to bring down petrol prices and were ignoring diesel.

I've not run the figures, but I suspect petrol and diesel cars are now very close in price per mile on average. If when I do the maths that's true then I'm back to petrol at the next car change.





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scootz

posted on 20/11/08 at 07:53 AM Reply With Quote
I read a report that stated it was all America's fault (again! ).

Apparently, more and more are turning to the smelly-stuff over the pond and this demand is keeping the prices high.

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dogwood

posted on 20/11/08 at 08:33 AM Reply With Quote
Diesel here is 1.05€ ltre = 88p





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procomp

posted on 20/11/08 at 08:44 AM Reply With Quote
Hi

World wide demand for diesel went up when the shipping industry switched to low sulphur diesel rather than high sulphur. Or somthing along those lines.
That's what i was told by some one in the industry. Oh and that diesel will never again be as cheap as petrol.

Cheers Matt






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maartenromijn

posted on 20/11/08 at 08:53 AM Reply With Quote
Netherlands:
Petrol: € 1,22
Diesel: € 1,05

Came from €1,60 resp. 1,40 or so. Diesel Seems to stay relatively more expensive.


I think the oil companies just want to increase their profit, by making use of the ever evoluting diesel engine. Diesel cars are more and more popular these days. Given the mpg rate, why isn't everybody running diesel engines in their tintops? (including particle filter of course)

Coozer:
quote:

Europeans use diesel as heating oil, keeps the price artificially high. Thats my take on it anyway. The grey box used to say as demand went down in the summer (warm) so does the price, but thats clearly not the case this year at least. Anyway still a derv fan so pick me 'new' 45 up Friday Steve



I don't know anybody who has heating systems running on diesel in the Netherlands, Finland (have lived there), Letvia, Switzerland (family), Germany, France, etc.

Maarten





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mikeb

posted on 20/11/08 at 09:46 AM Reply With Quote
I believe I read it as stated the demand for diesel remains high due to the increasing number of diesel vehicles on the road along with some of the other reasons mentioned, so they havent been overproducing it like petrol.

So in theory it is just supply and demand. damn annoying though.

I did the calcs 2 weeks ago.
Petrol would need to drop to 83p a litre comparted to the current price of diesel assuming 36ish mpg for petrol and 50ish for diesel, I've got a spreadsheet somewhere that works it out.

Mike

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BenB

posted on 20/11/08 at 09:46 AM Reply With Quote
Well my little Megane diesel is putting out 68mpg on the motorway so even accounting for diesel more expensive it's a win-win situation......
... and I only pay £35 road tax per year....

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DarrenW

posted on 20/11/08 at 09:52 AM Reply With Quote
With no clear facts on the table all i can summise is that the Supermarkets are on a major credit busting offensive to lead us to believe they care and offer the best value whilst subsidising the reduction in unleaded price with the now seemingly overpriced diesel.

Ive never liked paying a touch more for diesel but swallowed it on the basis that i can do more mpg for the same type of car.

Basic maths - Taking my car as example. Average BMW 320D tourer. Compare it to a petrol version. Cars doing about the same mileage on motorway and round the doors, assume light right foot.

Petrol version. Lets assume 40mpg average. 1 gallon = 4.54litres. 40mpg therefore = 8.8 mpl = £0.11 per mile fuel only.

Diesel tintops. Lets assume 50mpg average. 50mpg = 11mpl = £0.095 per mile fuel only

So the diesel does 20% more miles, but costs 15% more. Still better off but not by a lot. And if you factor in purchase cost differential it makes a case for buying a more efficient petrol car at the moment. Only problem is i like to keep a car for a while and you can never second guess what the government or oil magnates are going to do next.


And to make the sums even worse, ive worked for current company for nearly 6 years. Fuel claim started at 20p per mile. Still the same today yet fuel has risen from about £0.85 to £1.08 in that time. Why doesnt the government raise their 40p for first 10K miles allowance so companies can follow suit.


So now i have 2 rants.






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DarrenW

posted on 20/11/08 at 09:56 AM Reply With Quote
Does anyone else play the 'how high can i get the mpg figure' game when on a long run. The good news for my car is that i can get high 50's if i drive steady (at least on the computer).






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splitrivet

posted on 20/11/08 at 11:39 AM Reply With Quote
If you weigh up higher purchase price, servicing costs and the price of the fuel of a diesel motor theres very little in it.
Ive found if you keep a very light foot on both my diesel cars they are fine on economy, give em some welly and they really drink the stuff.
Cheers,
Bob





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sickbag

posted on 20/11/08 at 11:56 AM Reply With Quote
I thought it was due to the quantities each each barrel yields - 52% petrol and only 25 - 30% diesel.





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iank

posted on 20/11/08 at 12:13 PM Reply With Quote
quote:
Originally posted by sickbag
I thought it was due to the quantities each each barrel yields - 52% petrol and only 25 - 30% diesel.


Yes, but that hasn't changed in the last year (or indeed since we started making the stuff).

The question is really why the differential between petrol/diesel a year ago was much less than it is now at the same price point of petrol.

Of the above suggestions only the possibility of ships now sharing the same diesel supply as cars could explain that as nothing else has changed significantly in the year. Anyone know for sure if when that happened?

I'm still thinking it's a cynical ploy by the oil companies to make more profit.





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Agriv8

posted on 20/11/08 at 12:31 PM Reply With Quote
quote:
Originally posted by sickbag
I thought it was due to the quantities each each barrel yields - 52% petrol and only 25 - 30% diesel.

I was just about to say that [per barrel ] you get more petrol than derv ( somting i remeber from chemistry ) so goes some way to explain the difference.

Re the how high MPG figgure yup just got a new Passot ( 130 bhp ) and its thirstier than my old Passot ( 110 bhp ) I can get the new one a low as 8 on the MPG reading .

Record on the 110 ( 150 mile run from telford to home - M6 ) was 61mpg ( traveled all the way at 58 mpg following the wife in a derv corsa !!! ).

yet to do the telford run so cant comment but crusie control should help





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Agriv8

posted on 20/11/08 at 12:42 PM Reply With Quote
just found this quote

Date: February 2, 2006

Sales of new diesel cars in Europe continue to rise as consumers switch from less expensive petrol cars in search of fuel cost savings. The latest quarterly pricing survey by PricewaterhouseCoopers and eurocarprice.com shows that diesels accounted for 49% of the total European car market at the end of 2005. Diesel is now set to overtake petrol as the primary fuel for new passenger vehicles in Europe during 2006.


so that was 2 years ago before the latest price hike. So more derv cars less Petrol cars but still the same 50% 25 Splir per barrel of oil. So i would say petrol over produces ( cheep price ) derv in demand therfore high price .

Thinking back ( only a few years ) Derv uses to be 1 or 2 pumps on a large forcort now all have derv.

I still blame gordon though

regards

Agriv8





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Management is like a tree of monkeys. - Those at the top look down and see a tree full of smiling faces. BUT Those at the bottom look up and see a tree full of a*seholes .............


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