18.01.08 The arrival of £5 a gallon diesel

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Do you think £5 a gallon is too expensive for diesel?


When petrol prices hit the £1 a litre mark last year motorists and hauliers were understandably outraged. However, the price of diesel went through the £1 a litre mark a long time ago, and has showed no sign of falling since. The national average price diesel currently stands at 109.3p per litre, less than 1p away from £5 a gallon. This time last year these pump prices were unthinkable, but today 43% of petrol stations nationwide are selling at, or above, £5 a gallon - we are fast approaching an era where this is the norm. How has this happened?

As little as 10 years ago, diesel and unleaded petrol were the same price – 63.3p per litre. Thanks to a combination of inflation, exorbitant tax and rising world oil prices, we can only dream of the days when fuel was that cheap, but it raises an important question – why is diesel more expensive than petrol today? Also, in the majority of European countries diesel is cheaper than petrol, so why do UK motorists have to pay more?

Graph of Diesel and Petrol Prices 1988-2008
Diesel cars became popular in the 1970s thanks to their economical and environmental benefits, but with diesel headed towards £5 a gallon, perhaps diesel users will be forced to rethink the switch, and consider whether or not they really are saving money. 10 years ago a diesel car doing an average of 40mpg, driving 9000 miles a year, would have cost £647.55 to run. Today the cost is a whopping £1125 – leaving a typical diesel motorist £477.45 out of pocket per year, compared to 10 years ago.

For haulage companies, who use much more fuel, the continually rising diesel prices leave them with an even bigger financial gap to bridge. Many are left with no choice but to pass the extra costs on to their customers, so as the price of diesel goes up, the cost of transporting food and other essential goods goes up too. Any further increases in the price of diesel could trigger the end of cheap food in the UK.

For once, government tax is not to blame for making diesel more expensive than petrol. Both types of fuel are subject to a fixed rate duty of around 50p per litre, plus another 17.5% VAT on top of the price of the fuel and the duty added together. Although it explains why the government collects extra tax from motorists when the price of oil forces increases at the pump, it doesn't help to explain why diesel is more expensive than petrol.

There are two main explanations for high diesel prices, aside from instability in the oil markets. Firstly, diesel prices in particular often peak over the winter because it is very similar to the fuel used in a lot of British central heating systems. As demand goes up, the oil companies can charge more, and the cost gets passed down the supply chain, to drivers. This happens every year, but with an extra 983,000 diesel cars sold in the UK's in 2007 alone, relying on diesel to oil our infrastructure could leave us in a very vulnerable position.

The second reason is only exacerbated by our dual reliance on diesel. The UK used to get a lot of its diesel from refineries in the Gulf of Mexico, but as production has slowed, the demand for the available diesel has shot up. In short, there is less diesel available from the UK's traditional supplies to fuel more cars and more central heating systems than ever before. Could this be a taste of what is to come when the last drop of oil finally dries up?

The government can't be held responsible for supply and demand in the energy markets, but they do have the power to ease the financial burden on those who use diesel by cutting tax on fuel. We rely on diesel lorries to transport essential goods around the country, and the world, so surely a tax cut for diesel vehicles would be good for the economy? Tax on both petrol and diesel in the UK is extortionate, and as world markets change it becomes clear that policies that might have made economic sense 10 years ago are in desperate need of an overhaul.

We allowed petrol prices to break through the £1 a litre barrier, and they have continued to rise ever since. The arrival of £5 a gallon diesel should be ringing alarm bells for motorists, but instead of standing up and using our democratic power to force Gordon Brown to address the situation, we close our eyes at the pumps and blindly hand over our credit cards. And if this cowardly behaviour continues we'll be approaching £6 a gallon before we know it.

Is diesel too expensive? Should there be a tax cut for diesel? Or should we be trying to reduce our dependence on diesel altogether?

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Well the £5 diesel gallon has arrived in this part of Pembrokeshire Our local garage has it posted at 110.0p/litre. I suppose they have to raise the money for Northern Rock somehow.

Posted by Ken Dalziel, 21st January 2008 3:21pm

Everyone is talking about the rising costs of our fuels and when it will start having effect on what we buy. It's already taking effect but no-one is paying attention. The whole country has its head in the sand with Brown and his buddies pushing us more and more towards another ECONOMIC DEPRESSION.

This has to be addressed and no-one seems to care, it's all just taken for granted

Posted by James Morrissey, 21st January 2008 3:21pm

I visted France before Christmas and filled up at the Supermarkets and noticed that the price of diesel was a lot less than petrol and much less than we pay here in the UK. If the French can do this than why can they not do it here.A simple answer really we are a placid race and this leaves ourselves wide open to to be plundered by companies who put their investers before the customer. Will we ever have the guts to stand up and be counted.

Posted by Jamie Cafe, 21st January 2008 3:22pm

I am disabled and get a Mobility car, but I am having to use it less as living on disability benifit find it harder to afford petrol now .The reason they give you a Motability car is to give you freedom.where is the freedom when you cannot afford to use your car

Posted by Raymond Keen, 21st January 2008 3:23pm

Thanks for your article. At last someone has told me why the increase in diesel price has far outstripped that of petrol. You have analised the extra cost of running a diesel fuelled car compared with 10 years ago, perhaps if you were to publish the actual figure of increased revenue actually being put into the Chancellor's bag every time there is an increase in fuel price it would wake people up even more.

Posted by Bruce Matthews, 21st January 2008 3:27pm

The suggestion by Alan Smith in note 22 is not new and has worked before. I remember when hints were being dropped by "informed Sources" of petrol prices rising to over 80p per litre and a letter very similar to this one was circulated. The oil Companies suddenly found that they could peg the petrol prices and even reduced them slightly. This could work again as the refining process generates petrol whether it is wanted or not. The oil companies need to sell it to keep on refining other oil and chemical products.

Posted by Robert Jaconelli, 21st January 2008 3:29pm

Drive at or below the speed limit and save yourself 20p per litre. The price of fuel will only be too high when the 4x4 drivers think twice about roaring around urban roads in their 15mpg insecurity blankets.
Don't get me wrong, the higher cost of fuel hits me as much as anyone else but rather than whingeing about something I can't control (global oil prices) I'm changing my driving habits instead.

Posted by Kevin Partner, 21st January 2008 3:29pm

I would like to see you dislpay the cost of fuel in the rest of the eu countries and what tax ( in money terms ) not percentages that are imposed.That would give transparency to all uk motorists and give a good base for argument and to all write to our MP's if uk prices plus tax are exorbitant.

Posted by William Maurice Lutley, 21st January 2008 3:30pm

I currently travel over 500 mile a week to and from work, the petrol prices are starting to hit hard, I now think twice about going out of a weekend wasting fuel that could be used for work. If we all stop going out to visit places of intrest, the economy will slow and the country will start to go into melt down no one spending any of are well earned money.
Can't this goverment and the oil companies see what they are doing in forcing the price of fuel both in the car and in the home, they need to address this issue quickly.
Bring back the blockades and voice are opinions.

Posted by Brian Baker, 21st January 2008 3:31pm

The only answer I am afraid lies in the ballot box to vote out the worst, the most inept and the most corrupt government that this country has ever seen. The people who put them there are now the ones who are shouting the loudest about the rises. Do not forget that fuel tax is set to rise by ANOTHER 2P PER LITRE. in April!

Posted by Brian Roberts, 21st January 2008 3:32pm

With road fuel at about £5 per gallon, regardless if its diesel or petrol, and other driver costs like insurance, tyres and servicing soaring as well, isn't it about time that the Chancellor increased the 40p per mile "tax free" mileage rates? They have been fixed at 40p for first 10,000 business miles for years now. No way does that cover the true cost of motoring. A lot of companies fix their milage rates at the Inland Revenue tax free limit to cut down on the admin, so drivers end up subsidising their employers, or if employers pay more than that it becomes a taxable "benefit". So this is just another one of Gordon Browns stealth taxes.

Posted by Peter Crawford, 21st January 2008 3:33pm

If we have a blockade,just blockade the main ports like the french do,i give it about 3 days and this lot will be offering to do something about the price of deisel/petrol.at the moment one days bad weather in the channel and the trucks are stacked up from Dover to Ashford, so you could imagine what 3 days will do.The M25,M20,M2 would become lorry parks and once that happens they would have to do something.So lets not talk about it lets do it.

Posted by Christopher Ryan, 21st January 2008 3:33pm

As someone thats self employed and travels a minimum 500 miles/week to and from my primary source of work I resent the continual drip from MY pockets to the Treasury in fuel taxation. I say MY pockets because my regular employers are not interested in me making frequent demands for increases in my charges to cover the cost of fuel, the costs therfore come directly from my resources and result in a lower standard of living!
I suspect that many are in the same situation.

If this Government was spending the extra revenue in research in alternatives to reduce our dependance on what is a finite resource then I would not mind so much, instead they leave us vunerable to hugh profits by the Oil Companies and reap the benefit of extra Tax as a consequence!

With 21 million motorists, I should think they might dread the next election, but meantime we need to be more vocal to our MP's etc about this. ALL of us should be writing and bothering our representitives - We don't want to continue to polute the atmosphere, we want REAL alternatives and goverment to provide PROPER incentives for research and use of them when they are made available. There is too much vested interest in the status quo with the oil companies/taxation, we also have an opportunity to do something positive about perceived Global Warming and provide THE WORLD with a solution if research/development is acted on!

Meantime we need to protest vigorously that the percentage taxation is too much and WE will punish the Political Parties that are not committed to fairness in taxation that we the motorist have no choice but to pay.
I am sorry if this seems a rant, but some things need to be said - AND ACTED ON!!!

Posted by David Smyth, 21st January 2008 3:35pm

Diesel at £5 gallon is bad enough but what about the price of a pint?
My local went through the £4 barrier a while back and by my reckoning this equates to over £30 per gallon!!! How about that then, Mr. Brown??

Posted by Peter Copsey, 21st January 2008 3:36pm

This Govn't is on a bit of a win win where company car drivers are concerned. The revenue set the reimbursment rates for fuel at a rate that used to just about keep pace with pump prices. Now they have decided that from Jan 1 a price review will only take place on Jan1 and July 1. So as prices rise faster than the reimbursment rate..guess who foots the bill and essentially contributes to their own business mileage costs. My company moved to this form of 'robbery' sorry reimbursment last year and for the last 6 months most if not all drivers in cars under 2 ltrs lost money. If you have a car over 2 ltrs then you are laughing all the way to the bank as the reimbursment rate increases by around 30% but of course there is not a 30% difference in fuel economy in engines on either side of the 2 litre barrier.

Posted by David Ridley, 21st January 2008 3:39pm

It is getting silly now, for ages the petrol stations wavered under the £1 a litre mark (and interestingly petrol AND diesel were the same price in many locations), scared of what will happen when they again break the barrier that causes such upset a few years ago.

Since then the prices have just kept rising.

I drive a company car for work and the viability of owning the car is partly dependant on the money my company pays for my business miles. My company pays me the government recommended 40p a mile for first 10,000 miles then 10p after.

Shouldn't this be increased relative to the fuel increases?

Posted by David Scammell, 21st January 2008 3:39pm

Petrol is hitting 107p a litre in some areas now; soon we will be faced
> >>> with paying £1.50+ a ltr. How about this good idea: This
makes MUCH MORE SENSE than the 'don't buy petrol on a certain day'
campaign that was going around last April or May! The oil companies just
laughed at that because they knew we wouldn't continue to hurt ourselves
by refusing to buy petrol. It was more of an inconvenience to us than it
was a problem for them. BUT, whoever thought of this idea, has come up
with a plan that can really work. Please read it and join in!Now that
the oil companies and the OPEC nations have conditioned us to think that
the cost of a litre is CHEAP, we need to take an aggressive action to
teach them that BUYERS, not sellers, control the market place. With the
price of petrol going up more each day, we consumers need to take
action. The only way we are going to see the price of petrol come down
is if we hit someone in the pocket by not purchasing their Petrol! And
we can do that WITHOUT hurting ourselves. Here's the idea:
For the rest of this year DON'T purchase ANY petrol from the two biggest oil companies (which now are one), ESSO and BP.
If they are not selling any petrol, they will be inclined to reduce
their prices. If they reduce their prices, the other companies will have
to follow suit. But to have an impact we need to reach literally
millions of Esso and BP petrol buyers. It's really simple to do!! Now,
don't wimp out on me at this point... Keep reading and I'll explain how
simple it is to reach millions of people!! I am sending this note to a
lot of people. If each of you send I t to at least ten more (30 x 10 =
300)... And those 300 send it to at least ten more (300 x 10 = 3,000)
... And so on, by the time the Message reaches the sixth generation of
people, we will have reached over THREE MILLION consumers! If those
three million get excited and pass this on to ten friends each, then 30
million people will have Been contacted! If it goes one level further,
you guessed it... .. THREE HUNDRED MILLION PEOPLE!!!Again, all You have
to do is send this to 10 people. That's all. (and not buy at ESSO/BP)
How long would all that take? If each of us sends this email out to ten
more people within one day of receipt, all 300 MILLION people could
conceivably be contacted within the next 8 days!!! Acting together we
can make a difference If this makes sense to you, please pass this
message on.PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE 69p a LITRE RANGEIt's easy to make this happen. Just forward this email, and
buy your petrol at Shell, Asda,Tesco, Sainsburys, Morrisons, Jet etc. I.e. Boycott BP and Esso.

ITS GOT TO BE WORTH A TRY!!

Posted by Geoff Makepeace, 21st January 2008 3:40pm

I havent trawled through the comments but the question I would ask, are Diesel drivers getting penalised by the government unfairly as it is becoming the fuel of choice for many new car buyers?

Or is there a valid technical reason for the greater price? Also why is this government and the fuel companies in the UK not pushing the sale of alternative fuel e.g. BIO diesel.

It also begs the question coul we not find ways of planting more types of tree that could potentially provide cleaner fuel as well as add benefits to the environment. I know this mean same wishful thinking, however if you start somewhere and the demand for BIO fuels grow, then this we create the need to grow trees/plants in large quantities to sustain this alternative and if agreemtns are put in place that only so much is "harvested/cultivated" for fuel use, it could sloe down the reliance on standard fuels etc...

Whilst items such as electric power and hydrogen fuel cells are a great idea the take up isnt there duel to cost and technical limitations. Most modern vehicles can already run on BIO fuels etc... That is not to say we should stop development on the more technical alternatives.

To be fair some of the lack of take up on alternatives thus far is down to us drivers belief that the alternative technology will not offer the same driving experience etc...That said I recently saw a program where a 6 plus litre American V8 running on a BIO fuel and pushing out over 500HP still returned nearly 30MPG, so the capability to be greener whilst not dulling the driving experience is there. The question is why the lack of take up, the most obvious answer is this country use the car driver as a cash cow for everything even if it's not car related.

As I have said on a previous forum if you count the ways you are taxed and charged for everything you do as a car driver, you could all probably afford a much bigger mortgage if it wasn't for the car ;0)

If only we could all work at home and drive when the mood took us rather than commuting and sitting in goverment sponsored traffic jams.

Posted by Brian Fraser, 21st January 2008 3:40pm

petrol and desil are far too expensive, the government ignore this road blocks do little other than disrupt us. why not have a go use trucks to stop in the centre of london around downing street, the house of commons and bbc tv studios. then the polititians can't go any where, and the tv will have to report on it they can't go any where either. fuel should have only 17.5% vat and no other tax.

Posted by Matthew Goundry, 21st January 2008 3:41pm

motoring is not a right it is a privilege and roads are a scarce resource. we have all become slaves to our cars and we need to snap out of it. i drive and my girlfriend drives for her job but we both accept we have to use it sensibly.

we are not France - roughly 4 x the size and nicely square for road planning. there are many other ways to transport goods than by road and many other ways to get to school, the office, the gym etc. There will always be someone who says they cannot do it any other way and no one is pretending that no one is disadvantaged by higher fuel prices. What everyone must accept is that there is a problem and people wont seek alternatives until its right for them economically

Posted by Antony Obrien, 21st January 2008 3:43pm

Some confusions here, or perhaps it's me. Contrary to one of the comments posted, the Government does extort more tax on diesel on company cars - a couple of percent I believe. This dates back to when Brown was Chancellor and the so-called 'dirty' nature of diesel was the excuse to tax it higher. I recently contacted Shell to ask why diesel was more expensive than petrol - since I understood diesel to require less processing. Got a very whitewash 'PR-style' answer that effectively side-stepped the question. One excuse I have read is that there is insufficient capacity in the world to process diesel. In which case, the oil companies are a bit slow on the uptake, since - I think I am correct - diesel vehicles as whole - passed the 50% mark YEARS ago. I believe this is just another incarnation of the British consumer being considered a soft touch. Which sadly we are. Do you think the French would put up with this for one moment? Mais non! They'd riot in the streets. It's more than time for British motorists to start deploying their combined voting power to get what we want, rather than being treated as a cash cow to be controlled, penalised, punished and squeezed out on a continuous basis. And perhaps if police and local authorities were less obsessed with the Motorist and little more concerned about crime, a better balance might be achieved.

Posted by Nick Da Costa, 21st January 2008 3:44pm

time for the govenment to help transporters with less burdon on their fuel costs. Before half the country barley servive with food prices risingso high.

Posted by Derek Wennington, 21st January 2008 3:44pm

Yes I think the prices should be reduced for both petrol and diesel because the ongoing charges affect to many aspects such as more expensive food
and charges past on by transport companies. This can also affect employment as many companies may have to lay of employees due to
rising costs.

Posted by Jan Davidson, 21st January 2008 3:45pm

As a nation I think that we deserve to get taxed to death. We are so apathetic when it comes to protesting. If you people are really that unhappy, then do something about it.

Posted by Stewart Brownrigg, 21st January 2008 3:48pm

The heavy burden imposed on motorists spirals endlessly upwards, with each increase in fuel swelling the treasury so that Gordon and his cronies can throw it away elswhere, whilst our roads remain decrepid and the worst in Europe. Why do Brits put up with such shabby treatment?
Without question it is about time that fuel duty was drastically cut and Gordon found some other means of raising revenue, i,e by cutting wasteful spending.

Posted by Alun Meecham, 21st January 2008 3:48pm

Passing on something I was shown:- There is something called the Iranian Oil Bourse. I am not politically minded myself, but I understand from reading on internet about it, that it is all to do with Iraq/Iran etc.,(oil producers) wanting to change from US$ to the euro, this has caused no end of worry for the US. This has effect on prices & all sorts of things. See what you make of it, it is certainly food for thought.

Posted by Nicola Gilbert, 21st January 2008 3:51pm

Now that petrol companies & the government have got us use to paying above the £1 per litre barrier, even if production costs of petrol/desil came down, we would be still paying the same retail price.

Britian seems to hate the french for taking direct action when protecting their rights as farmers and citizens etc whilst we let our governments walk over us.

Posted by Stuart Harrison, 21st January 2008 3:51pm

Me thinks it's time for a BIG fuel protest, block the fuel depots, stop the motorways, create mayhem, I know we all don't want to be stuck in this traffic, but if it's the only bloody way the government will listen, let's do it!!

Posted by Steven Hill, 21st January 2008 3:52pm

I strongly support many comments as the road haulage industry is vital to the operation of UK and in Europe fuel prices are significantly lower than UK particularly for diesel - even as far away as Ireland. It is regrettable that the current administration has never learned to listen and never will - so look forward to the next two stealth rises put in place by Brown before he replaced Blair . Unfortunately apathy reigns but even this government must realise that they can not jail protesters as the jails are full. In France you would have action direct to close the system down until grievances were remedied - not UK. We will keep on paying and the green lobby can campaign for the return of the horse.

Posted by Tony Kelly, 21st January 2008 3:53pm

The only way to combat this is to stop buying from Esso and BP.
They are the companies that dictate prices and if we stop using them they will have to lower the cost.
All the other companies will follow suit.

Blockades do nothing, as Dictator Brown will just sit laughing for a couple of days until we all need petrol and go and panic buy.

We need to have a big campaign to get the whole country to boycott BP and ESSO until we achieve a suitable price level.

Tell all your friends and families..trust me it'll work.

Posted by Jamie Stanborough, 21st January 2008 3:53pm

I'm one of the people who said diesel isn't too expensive, and no, I don't think I'm mad. I am a car owner, and I probably do about 5-6,000 miles a year, mainly on the motorway visiting friends and family. All of my travel around Bristol I do either by bike or Shanks's pony. If fuel is too much, then look at ways of reducing your car use. Simple as. If high fuel costs mean that people think twice about driving to the shop to get the newspaper, or driving uneconimically (unnecessary accelerating and braking, revving of engines etc) then I'm all for it. Cheap car travel is not a right, and the sooner people realise that the better. Petrol costs barely more than milk, and a lot less than beer!

Posted by John Rooney, 21st January 2008 3:54pm

i am up for demonstarting, i live in the highlands and run my own business from home i do not use a lot of petrol, but am with you guys , ready to be counted, BUT, who is going to be first to take action, and it only needs one, i have even thought of starting my own little protest, but as i go about my daily work tend to forget about it, why did it stop the last time?

Posted by Shirley Ross, 21st January 2008 3:55pm

RE:Alan Smith, 21st January 2008 1:56pm

The problem with boycotting companies like ESSO or BP is that they supply the rest of the market anyway so whether we buy from Tesco, Asda, Sainsbury's or ESSO/BP we are still giving the money to the same people and most of that isn't the fuel companies. At least they supply something for the money we pay them. It's the tax that is the problem and what do you see for all the tax, roads that still need repairing. When they get round to fixing the roads we get hold up's causing more fuel usage and then repairs take twice as long as expected. The costs need to be spead around move evenly rather than the present idea of tax drivers and tax them again! Time for a General Election and we can then see what all the parties offer on this problem, the only problem there is will any actually do as the say when it comes down to it!!!!!!!

Posted by A. Motorist, 21st January 2008 3:55pm

Will biodiesel work in my Jeep Grand Chrokee 2.7 dieasel and can we compile a list of garages supplying biodiesel? Assuming it is the same mpg then at 95p per litre biodiesel looks a better bet,

Posted by Barry Horsman, 21st January 2008 3:57pm

This will force motorists off the roads as £5.00 a gallon will act as a social tax pushing hard up families to give up their vehicles. I run a diesel fuelled vehicle and got caught by the car license increase to £300 a year. My vehicle despite an annual milage of 6k a year is now uneconomical to use and I will have to sell it meaning a significant loss for a one year old vehicle that few people will want.

Posted by Tony Jackson, 21st January 2008 3:58pm

I am actually quite happy to see the cost of oil based fuel rise to the point where journeys need to become essential ... the petrol engine car industry collapses and alternative power sources are developed. By the end of the decade some think that it will be the £10 gallon. Also I would begin to tax the gas guzzlers off the road [and not onto the fields but into the scrap yard.

Interesting thought ... has the combustion engine effected the end of life as we know it?

Posted by Malcolm Rooney, 21st January 2008 3:58pm

Oil production is slowing down and demand is increasing. It's a seller's market! Petrol and diesel are going to continue to rise in price and Britain is going to be hit worst by the shortages because of our poor relations with the oil producing nations. This is the strat of things to come, everything that depends on oil is going to increase in price and all manufacturing will be affected eventually.
Just start getting used to using less fuel and let's all stop wasting resources.

Posted by Susie Parkinson, 21st January 2008 3:58pm

Everyone's driving up the wrong tree. Tax is tax whether it is petrol pump or income tax. Increasing fuel tax reduces congestion and stops wealth transfer to oil exporting countries (net loss for UK). Reducing income taxes/corporate taxes increases employment and gives you more money to buy the more expensive petrol. You are wasting your mental energy with this crusade. You are better off trying to get house prices down - this is a bigger slice out of your wallet AND a drag on the economy.

Posted by Saleem Sajad, 21st January 2008 3:59pm

Where is all the money the government makes from fuel taxation being spent? Pulling the Northern Rock out of a mess?

I really haven't seen the benefits of all this money on our roads or health service.

Absolutely no reason at all why fuel can't be reduced to 60p a litre or less.

Posted by William Murphy, 21st January 2008 3:59pm

This comment has been removed as it was found to be in breach of our Blog Policies.

Sod the eco friendly bragade.

I'ts un eccomical to invest in a car and then not to use it! We all work hard to have that prevaledge of driving a car, don't let any eco worrier or government take that away from us. I know losts of people that blab on about the impact cars have on the environment. However, I don't see them refusing a lift in bad weather, infact their greatful of a 10 year old, fuel guzzelling, comfortable BMW that I have worked hard for.

Don't let anyone take away your luxurys in life, that is why we work so dam hard!

Posted by Stuart Harrison, 21st January 2008 4:03pm

Diesel has a lot going for it, cheaper to produce than petrol, less Co2 emmited and more mpg for your avg car, a winner all round. However as we all can see at the pumps its much more expensive than petrol, there needs to be an incentive to continue with diesel such as reduce the tax burden so that diesel becomes approx 10% cheaper than petrol. I,m all for a blockade the government needs to understand that these price hikes are unacceptable. Go nfor it.

Posted by Chris Burt, 21st January 2008 4:06pm

We have to blockade - Italy can do it why can't we, as for the people saying fuel is cheap fine - but what about the tax I suppose you think that's cheap to! People need to work to live. For once I would love to see this country unite together. Let's start the revolution here!

Posted by Nigel Driver, 21st January 2008 4:06pm

The government is stangling the country slowly but surely. They are basically taxing us for working. Should we all sit at home and get welfare benefits? seems that is what they want. They are taxing us so high for fuel and cars, for road use, for income tax, and now they are trying to strangle the very heart of our society by taxing hauliers so they can no longer afford to provide the vital services needed to feed us all. Have they taken a look at their books and seen how much this diesel taxation is costing the emergency services? They need diesel too. What about trains, do they get discounted fuels?

It's that old line again........ You cant' do right for doing wrong. They tell us to buy vehicles that use less fuel, so we buy diesels. Then they make diesel more expensive than petrol, so we lose again.

Maybe we should take a leaf out of the americans book. When a president upsets them they shoot him. Don't know what it will solve but it is tempting at times.

I feel a major protest is needed now!

Posted by Gwen Kirby, 21st January 2008 4:10pm

The goverment can do what they like now, i was one of a few at Fawley in December,we had no support from the public or hauliers so im afraid its just pay up and shut up.

Posted by Mick, 21st January 2008 4:10pm

why is diesel cheaper than unleaded in most european countries, can anyone expain, I've read that 40% of uk cars now sold are diesel, nigel

Posted by Nigel Sutcliffe, 21st January 2008 4:12pm

How can you say Diesel is 1p away from £5. per gallon ???, there are 4.546 litres to a gallon, & 4.546 x 109.3 equals ....£04968778. per gallon, which is MORE the 3 pence away from £5.00 per gallon, I rest my case.

Ross.Lillicrap. Emsworth. Hant's.

Posted by Ross.lillicrap., 21st January 2008 4:12pm

We all knew that Labour is a party of high taxation, it has not changed since the 70s, remember that famous speech, "squeeze them till the pips squeek" from Jim Callaghan.

We welcomed them in 10 years ago and now we cant shut the door for another 2 years.

What the hell are we going to do?

Posted by Stephen Slight, 21st January 2008 4:13pm

I think the total price of fuel here is very bad , its the goverments way of raking in money as well as retsricting the peoples movments . with road atx as well its now becoming harder for the man in the street an families to travel , rail prices are up if you can find a train that is running ! Please let the people stand and fight this stupid tax

Posted by Roger |smith, 21st January 2008 4:14pm

Its not jest business being affected now it the whole of the community every single person is now seeing how the prices are affecting I've noticed how much less fuel you the last few weeks I really think its time for us all to make a stand and do something about it, time to fight back and stick together

Posted by Tina Lewis, 21st January 2008 4:14pm

RE John Rooney

How fortunate for you that you live in a part of the country where the public transport infastructure is such that you only have to drive 5/6,000 miles per year.

Sadly the majority of the population are not able to avail of the idyllic proximity of amenities whereby travelling by bike or walking is a realistic option.

Whilst I agree wholeheartedly that we should all try to drive as economically as possible for the sake of the environment, I do not believe that the tax on fuel should be such that only the wealthy can afford to drive.

I never thought I would find myself despising a Labour Government for a tax policy which so unfairly discriminates against those on low incomes.

Posted by Andrew Smyth, 21st January 2008 4:14pm

What a great idea. Increase the prices....reduce the number of cars on the road. Brilliant......all those middle to lower class people will have to quit driving, where as the rich can keep their luxuries because they deserve them.

The rich are better than us, and we should respect their need to drive is far greater.

Like ***** they are.

I don't recall voting Brown in anyway....what is the UK like now...China? You get the leader they give you....

I saw one hugely supported e-petition had a reply from the PM regarding new taxes: "I can see that a majority don't like this idea of new road taxing - but we are going ahead with it anyway." So much for the peoples vote.

The whole country is going down the tubes - and we're all paying for it.

Posted by Lucas Black, 21st January 2008 4:15pm

Traveling about a bit I find petrol prices in Europe are nearly has expensive as ours appart from Spain were it is a lot cheaper and the USA is only just over a £1 a gallon its time we did something about it but what I dont know.

Posted by Peter Rowley, 21st January 2008 4:15pm

Brendan the price of diesel in my area IPSWICH is £108.9 and £1.10p a litre so that makes it £5.50 per gallon
What is the answer to this piracy ?
Regards aye
od

Posted by Rod Spinks, 21st January 2008 4:16pm

Yes the prices for diesel seem to increase day by day, always by at least 1p per litre or 5p per gallon, all great news for this incompetent government which is enjoying not only the recent 2p per litre additional fuel duty but the additional revenue that recent price rises have delivered to the chancellor, this explains how Gordon Brown can wander the far east and asia handing out millions of pounds of tax payers money.

Posted by David Hudsmith, 21st January 2008 4:16pm

Petrolprices is a great site and provides a great service to motorists. However, I do not think that lobbying or any kind of protests will do any good. This morning I got an email with a different idea. This email suggested that we all boycott buying petrol from the 'big two', BP and Esso for a period of about 3 months. They would then be forced to reduce their prices to attract our custom and the other oil companies would then have to follow suit.

Posted by Brent Skuse, 21st January 2008 4:18pm

Well Don Gonsalves what's the idea? Call me 01908 275271, cheers,

theo

Posted by Theo Chalmers, 21st January 2008 4:19pm

We need to make the members of the commons aware they are on their way out.If every sitting member is aware they will be voted out at the earliest opportunity they may start to act .
It will not matter who you vote for at the next Local council or parliamentary election just ensure it is not the sitting member.
The work is done by the civil servants in any case so it matters not a jot which colour or wing of person you vote for except that we make it clear to the people who think they are the given ruling class a lesson they will not forget.
Vote only for change and get out the Cliques and old boys who have bought us to this state.

Posted by Robert Farnsworth, 21st January 2008 4:20pm

I think there should be a tax cut on petrol & deisel. I am finding it incredibly hard to find money for fuel. I am on a very low wage. Living in a village with 3 children at 3 different schools I need a car. I am increasingly finding myself having to make the choice between food or fuel. The cost of food has also gone up dramatically over the past few months.

I think there have been some good ideas posted here, like red deisel available for hauliers etc. That would help with the cost of food too. If I had a deisel I would switch to biodeisel & I think that was a very good idea to make a list of places where it's available.

If we did all unite with one voice then I'm sure the govenment would take us seriously - but it needs a lot of people to stand up & be counted - that means advertising widely any action to be taken & making sure it is something that the majority can be involved in easily. While everyone sits back & waits for everyone else to take action the government will just sit on their hands & do nothing. If they see we are all concerned enough to take action then they are more likely to take notice.

Always choosing the cheapest place to buy petrol & deisel is voting with our pockets too. Maybe a bit of complaining to some of these big places like Tesco etc when their prices are higher than elsewhere might make a difference as well.

Posted by Paula Tozer, 21st January 2008 4:21pm

Let's face it Lad's this Goverment ,especially Brown arn't interested about how much a litre of petrol or diesel costs as they live in a different world to us mortals.The British people should call for a General Election ASAP,as I have just filled up and it was £1.10 per litre or £5.50 a gallon
When will this piracy end,as I'm an OAP and can't afford to run my diesel motor???????????????????????
We need something to happen or before long wel'l all be walking!!
Take care
Regards aye
Rod

Posted by Rod Spinks, 21st January 2008 4:24pm

I drive a diesel car because, when I first purchased it, diesel was supposed to be better for the earth and because of the fuel economy and longer lasting engine than a petrol car. Unfortunately just after I purchased my car, they decided it wasn't so and the price went up and up.

I need my car for work and, because of where I live, I cannot rely on public transport as it would take me all day just to get to work - nearest train station being 3 miles away, public transport going in totally wrong direction to be feasible and no inter-linking buses/trains.

I have no choice but to pay the price at the pumps. I don't mind paying the price as long as the rest of Europe pay similar prices - unfortunately this doesn't happen and we are really being ripped off by the government and the big named petrol stations, ie Esso and BP.

I've just had an Email from a friend that has been forwarded on to others suggesting that we all boycott Esso and BP garages for the foreseeable future to force them to put the prices down. If thousands of people do this, Esso and BP won't have any choice but to lower their prices.

If you think this is a good idea and might possibly work, please get on to all your friends, colleagues, neighbours, etc to see what we can do to this grossly unfair tax on ordinary people who are trying to go to work to earn a living

Posted by Sue Brown, 21st January 2008 4:25pm

I also work for the NHS and although I am paying higher fuel prices the NHS are not compensating for this price and we are currently being paid the same amount per mileage as we were 5+ years ago

Posted by Jacquie A Evans, 21st January 2008 4:26pm

I have previously advocated using the power of the consumer and boycotting BP .If every body stops buying from them and uses anothersupplierthey will soon whinge to the Government and the financial institutions will run to their masters who will be forced to act .
Try it do not buy from BP in any form

Posted by Robert Farnsworth, 21st January 2008 4:27pm

Brendan, in my mathamatical innocence it strikes me that all oil prices are in dollars and with the exchange at roughly 2:1 why are we still being charged the exorbitant prices of today. Why does the Chancellor not reduce his 'take' from the current high levels to try and offset this a little. His take is some 50% more today than 10 years ago.

Posted by John O'reilly, 21st January 2008 4:27pm

I live in Northern Ireland, reasonably close to the border with the Republic of Ireland, where the price of diesel is 20p cheaper - happy days!
When I drove a Citroen Xantia I was able to use Biodiesel which was much cheaper that ordinary diesel at the time. However, I changed to a Saab, received some duff advice and ended up spending over a grand to fix the damage, so be VERY sure your vehicle is FULLY compatable with Bio! If you e-mail the technical dept. of your vehicle manufacturer they are usually very good at supplying advice.
Prices, generally, of all comodities work on the basis of supply and demand but fuel suppliers in the UK are limited, and this in turn means a reduction in the ability of the user to influence in any way the price.
We also have a government that is financially on the rack, so any form of additional revenue from oil companies is an absolute godsend.
We also have a government that is very near the limit in terms of taxation in general.

I see from very many other messages that the consumer, particularly the English consumer, is beginning to squeal! This is good, because as the vast majority of consumers are in England, even if they acted on their own, they are the group who will influence the supply companies AND the chauffer-driven hanger-ons in this "stuff you" Labour government. Go to it lads and lasses!!!!
Must go now as I'm off to fill up in Donegal!!

Posted by Bob Hedley, 21st January 2008 4:27pm

The price of fuel is false because the goverment is just puting layers of taxes on.This then makes the cost of materials and products high.The end result being we are not spending our own money.The so called goverment and its vast army of civil servants are merrily spending it for us.

Posted by Bob Millinson, 21st January 2008 4:27pm

This comment has been removed as it was found to be in breach of our Blog Policies.

How do we compare with other European countries. F I remember rightly not long ago the Goverment was saying we should switch to diesel as it would be cheaper. How strange that now it is more expensive than petrol. Rip off time yet again in this country. We all put up with it as well!!!!

Posted by Paul Finch, 21st January 2008 4:29pm

Surely the government should be encouraging us to use more environmentally sound fuel such as diesel by reducing the tax on it. When we originally switched to a diesel car, this fuel was cheaper than unleaded - now it's the other way around. Where's the incentive to be good to the environment?

Posted by Philip Caveney, 21st January 2008 4:31pm

What has the price per gallon got to do with anything? We haven't bought petrol by the gallon for decades. What is a gallon anyway - the only petrol sold by the gallon is in the USA, and a gallon there is different from anything the British ever called a gallon? Why didn't you make this fuss about the £1/litre. At least that would be relevant to the way petrol is currently sold.

Posted by Dave Brown, 21st January 2008 4:31pm

I do a lot of miles (about 1,000 a week) and have the large (85 litre) tank fitted to my Mercedes. On motorway driving I can get as much as 44 MPG, but it still means I have to fill up at £100/week. I have no choice but to pass this cost onto my clients, who pass it on to their customers and so it hits your pocket, having been hit with tax and VAT at every juncture on the way.

If someone is planning some sort of action, let's hear about it. Otherwise we will not be able to register our disquiet until 2010 at the earliest and we don't need a crystal ball to see that there will be a momentary fall in fuel prices just before the election!

Posted by Chris Casselden, 21st January 2008 4:31pm

Yes, it's pretty disgusting the amount of tax levied on our fuels and good old Mr. Darling is trying to tell us it's all in the name of cutting down on our carbon footprint.
I've tried using a bio fuel produced by a local outfit processed from used cooking oil. Not only is it replacing fossil fuel it's also using a waste product, and it costs 83p per litre, a lot less than the average fuel station price.

Posted by Neil, 21st January 2008 4:32pm

Hi

I am old enough to remember when diesel was approx half the price of petrol.

What happened to economy of scale equation. i.e. the more you make of a

similar item the lower the unit cost.

I can only assume someone is getting greedy.

I don't vote for greedy people

Posted by Geoff Wakeling, 21st January 2008 4:33pm

Tax Tax Tax - It is very simple. If our gov reduce the Tax on fuel then they will have to increase it elsewhere. They are losing millions from people giving up cigs and will now be looking at where else then can recoup.

I say let the haulers and such reclaim a good percentage of this tax via their returns and keep the tax the same for all others. Also allow companies to pay their employee's a decent rate for using their own vehicles without it becoming a taxable perk.

We should also introduce a road/pollution tax on all foreign visitors/drivers so they like us pay. This should be done before entrance to the UK. If we travel to another country we pay for the fuel and road tolls whereas in this country foreigners get away with it to easily.

The best idea so far although not a solution is to vote out our Government and hope the next leaders do a better job.

Posted by Edward Bank, 21st January 2008 4:34pm

Whatever happens with the pricing and tax - at present, diesel cars are so much moreeconomical than petrol vehicles that no one would want to switch from diesel to petrol.

Posted by Chris Rastin, 21st January 2008 4:36pm
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