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Why is diesel so expensive

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Old Nov 28, 2008 | 04:54 AM
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Default Why is diesel so expensive

Ok fuel is supposed to be getting cheaper - its actually 98.9 for super near me now - so why is diesel still 112.9 !!!

im sure when i learnt to drive diesel was 'CHEAPER' than unleadded ??
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Old Nov 28, 2008 | 04:57 AM
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I'm no expert but probably to keep the tax/profits rolling in while everyone switches to diesel.
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Old Nov 28, 2008 | 05:01 AM
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Supply and demand and demand is high.
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Old Nov 28, 2008 | 05:06 AM
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Supply/demand, simple.

More people are buying diesel than petrol.

However, the proportion of petrol/diesel made hasn't reflected customer shift so petrol is that much cheaper.

I expect this to change over time although I'm sure there are other factors, i.e. does a gallon of diesel cost more to produce and get to the forecourt than diesel?
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Old Nov 28, 2008 | 05:07 AM
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road tax is cheaper for a diesel.

plus it can cause cancer and it chucks out loads of dust.which isnt very good for you either.
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Old Nov 28, 2008 | 05:16 AM
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Diesel is less refined so it's far cheaper to produce.

Also, more diesel is refined than petrol as more of the world's consumption is diesel.

So there's no reason other than duty levied by the government and the simple law of supply and demand - more demand for a product, higher prices - lower demand, lower prices (ref. UK housing crash, 2008/9).
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Old Nov 28, 2008 | 05:19 AM
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It's more in demand, but it's also
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Old Nov 28, 2008 | 05:24 AM
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I remember Nick Graves mentioning something about the source of oil. North Sea oil doesn't refine as much diesel as the Arabian stuff, so there is less capacity for it here, whereas in France, who are best chums with the Arabs, they have lots of diesel.
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Old Nov 28, 2008 | 05:43 AM
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info here, i think it's broadly accurate as i seem to recall from Chemistry refinement was easier for the heavier hydrocarbons?? I think.. that was a long time ago. a very long time <goes off for a cry>

the difference is down to duty according to this
http://www.petrolprices.com/why-diesel-cos...han-petrol.html

it's 104 at morrisons, you should sign up to their email alerts if you use a lot.
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Old Nov 28, 2008 | 05:54 AM
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Tax is a culprit, but also Supply - of Petrol - Europe produces too much of it as a by-product of producing the Diesel for Europe. So much so that surplus Petrol is shipped to the US - one of the factors why UK petrol didn't go up as much as Diesel in the summer was that the US didn't want the Petrol. Differential around here is around 14p (unleaded @ 90p)
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