[andrewll]

Not sure that this is the correct area of the Forum to post this but can anyone explain to me why there is such a big differential between the price of Diesel and Petrol, when just over a year ago there was only a difference of a penny or two. I had put it down to the massive increases that we saw in the cost of crude oil but as that has now dropped well below the price when we had the 1p difference, it sort of rules that theory out??

 

[Neillbro]

Hi Andrew,
It is a very good question. One that I think Gordon Brown needs to be taken to task over!!!

 

[pekem]

Tax and Green politics have a great deal to do with it. For an interesting explanation, and there are plenty of those, read this:

http://www.thisismoney.co.uk/news/artic ... _page_id=2

 

[andrewll]

Read the article and while it confirms the effect the cause is still confusing. Can increased demand from China really be at the root of it and has that demand risen so dramatically over the past twelve months?
Does anyone know what has happened to diesel prices in say France where 70% of the cars are diesel?

 

[pekem]

I suspect that demand has decreased in China, as it has done here by manufacturing industry. Now it might just be the need to maintain revenues where possible. Tax revenue generally will surely fall as the "credit crunch" bites. If you were Chancellor, what would you do :?: Reduce it and other the side will jump on you; don't and Greenpeace certainly will

 

[andrewll]

Yes sort of follow that logic Pekem, but Diesels are (allegedly) less polluting than petrol (see DPF threads !!! ) so why no fuel tax benefit for diesels? I still dont get the fact that the differential is now so big when 12 months ago it was couple of pence.

I will try to find out what the fuel prices are like in France and what sort of movement they have seen.

 

[pekem]

Whatever the cause, your post has, when I last viewed it at least, provoked the sellers of Red Diesel to promote their business with a big colour banner :lol:

 

[andrewll]

Had time to do a little research this afternoon and I reckon at the current (terrible) exchange rate diesel is around 93p a litre in France and unleaded seems to be around 10p a litre more expensive. If we were back to proper rates of exchange, say 1.4 euro = £1 then diesel would be 68p a litre !!!

Havent yet been able to find any historical data though. I do remember reading a long time ago that france actually had lower rates of duty on diesel compared to Unleaded as allegedly diesel requires less refining and less crude oil per litre so is more environmentally friendly I guess.

I still dont understand why, in the UK, the differential between Diesel and unleaded has gone from a 2/3 pence to 10p plus?

 

[pekem]

It may be that the EU will not achieve its objective of avoiding commercial "market distortions" caused by huge differences in diesel fuel tax rates among European nations within their timetable, but the article linked below shows which way the wind is blowing. Also the current tax rates (Aug 08) for different countries is shown.

http://findarticles.com/p/articles/mi_m ... i_90331869

 

[B3NN L]

As requested by pekem, I've had a shifty at the average fuel prices over here in North Germany.
All prices in Euros

Diesel is 1.08 Per Ltr
Unleaded is 1.14 Per ltr
Super unleaded is 1.24 Per Ltr

Being in the forces over here we get fuel coupons which we purchase in 10Ltr Coupons, at present they are:

Diesel 6.60
Unleaded 3.70
Super Unleaded 9.80

Even though its cheap as chips for the Diesel, I still find it odd that its almost twice as much as the Petrol!

 

[pekem]

Thank you zx10ben,
That is interesting.
Since, I think, we have almost Euro / Pound parity at present in the real world, it seems that we are unlikely to see any government inspired reduction in the price of diesel here, even though the tax take is different in the two countries.
I am sure we can all feel for you personally having to suffer a near 100% premium for your diesel in relation to petrol