02.02.07 Why does diesel cost more than petrol? (even though it costs less to make)

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It will come as no surprise to inhabitants of the UK that we pay more for our fuel than most. In a time when uncertainties over crude oil supply, particularly in the Middle East, have caused record price highs at the pumps, it is all too hard not to come to this depressing realisation. What may be surprising though, is that within the league rankings of over-priced fuels, diesel is more expensive than petrol.

Just why is this then? If you are a diesel car driver and are wondering why this once more economical fuel option is now pricier than standard petrol, read our full article here.

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I do not drive a diesel car I drive a petrol car but I feel never the less that the diesel situation is a JOKE!! The MASSIVE difference is because many many people(and company fleets) run a diesel car in this country and even though you get better MPG you are badly stung at the pump(91.9/diesel at my local esso and 87.9/unleaded) THAT IS A MASSIVE DIFFERENCE. I do feel sorry for people who drive diesel cars, although I am sure a certain Mr Brown
loves you!!**VOTE OUT LABOUR AT THE NEXT ELECTION**!!And also I wish to declare that the recent S*** about global warming and climate change is just that-S***, the earth is going through warm-cold-warm-cold peroid's,we are in a warm peroid NOW thats all!!I love to fly and drive and simply dont buy it one bit!!The alternative fuel industry is worth BILLONS thats why we 'NEED' to switch. Great website site petrolprice keep up the good work and long live the british motorist!!Paul Ponchaud

Posted by Paul Ponchaud, 4th February 2007 1:05pm

I drive a petrol car hence I am glad diesel is more expensive than petrol. If Mr Brown made diesel cheaper he would put the loss on to petrol so please
*** MAKE SURE YOU VOTE LABOUR AT THE NEXT ELECTION***! and keep these conservative bigots out.

The previous writer hasn't been listening to the news the last few day about global warming where all the experts from around the world agree it is a problem?

Posted by Rod Bradford, 5th February 2007 8:01pm

Our local Tesco have put all grades of fuel up 1p last night. Does this mean everyone will follow?

Posted by Alistair, 7th February 2007 11:36am

Retail Fuel Prices, will start to move up. Crude has come off recent lows.

As for Fuel differentials between Unleaded and Diesel, get used to it. Its been this way for a couple of years, and will continue.

The Government of the day, no matter which Party, with the Automobile Industry, will push the cost of motoring to the limit. Based on "Green" motivation and principle.

Posted by Learjet, 8th February 2007 10:02am

Paul Ponchaud, just because you don't want something to be true, doesn't mean it isn't.

Posted by Steven Burns, 8th February 2007 10:38am

I have driven diesel cars for many years.
At one time (many years ago) diesel was in fact cheaper but I think the big differential now is that diesel is deemed by the government to be more polluting and detrimental so attracts more tax.
As with flying, I don't see how increasing tax will help the environment - It only serves to make people poorer.
The fact that diesel prices remain higher also means that transportation costs remain higher (most lorries are diesel) so in the end even petrol drivers pay more with the prices they pay for goods in the supermarkets.

Posted by Aides T, 8th February 2007 1:19pm

OK Smart arses howcome this about the only country in the world that dirsel prices are higher than gas gussling petrol.
Remember one fact diesel takes a lot less refiening than petrol therefore uses a lott less carbon fuels = less polution and greenhouse gasses.

Posted by Ian Mayo, 9th February 2007 9:50am

The previous statements are just a little off the mark.

In the USA, Petrol costs avg $2.19cts/Gal. Diesel costs avg $2.43cts/Gal.
Diesel pays a higher Federal and State Tax than Petrol.
In Canada, Diesel is higher priced by 3/4cts/litre.

Refining Diesel, is more expensive than Petrol. Petrol comes off the refining process at between 32-93 degrees Cel. Diesel comes off at between 232-343 degrees Cel. It takes more energy to get Diesel. This will only give you "Conventional" Diesel at above 2000ppm. To get to "Ultra low" and "Sulpher Free" Diesel, it must be reprocessed to acheive 10ppm. This makes it expensive to produce.

Most people want it both ways, "cheap green fuel" chemistry does not allow this to happen. Even the "alternate fuels", when brought to market, and established, will be taxed and subject to demand, just the same as the present "Fossil Fuels". Its a never ending story.

Posted by Learjet, 9th February 2007 11:51am

Most of europe pays far less for diesel at the pump because their govts believe this fuel to be less polluting than petrol. it also makes sense to keep the price of the fuel down as virtually all commercial haulage uses diesel.Why our govt cant see that i cannot fathom-i think they relish being entirly different to Europe for its own sake and bloody mindedness!!

Posted by Brian Gouldthorp, 9th February 2007 6:28pm

hello brian.
first, let me say that i agree 100% with your evaluation of global warming. it's a load of ***p. the earth has gone through so many warm/cold periods,they cann't be counted.the so called medit'rn sea ,has been a sea/desert/sea seven times.of course it was all according to when you lived, as to what it was.the problem with global warming ,is that some big name companies that are "soaking" us at the moment for heating (electric/gas/oil"
will all be worse off if it warms upwith regards to your comment to the pro/con of diesel/petrol,it must be supply and demand,must it not?
in other words, we now buy more diesel than petrol,so the oil companies have the excuse to put up the price of diesel to compensate for the loss in petrol.
the government ,on the other hand, listen to the b******t given to them by every body but the people who put them in,think its a good idea,more money for them to give away to the people who least deserve it.
last, but not least;it was the conservatives who put the escalator rise on fuel not labour, so dont think by changing the government you will make it any better,far from it ,you will make it worse all round putting that shower in.

Posted by David Coxson, 10th February 2007 4:35pm

In reply to #10, David Coxson,

"the government ,on the other hand, listen to the b******t given to them by every body but the people who put them in,think its a good idea,more money for them to give away to the people who least deserve it."
So those people with disabilities who struggle through life day by date "least deserve" government money? Why are you calling people with disabilities "b@stards"

Global warming is not a myth. I'd prefer to believe the top scientists than some nasty bigot.
Why are you keeping your head placed firmly in the sand when it comes to global warming? Is it because you're selfish and you would be reluctant to change your lifestyle for the benefit of humanity as a whole?

I'm afraid it's you and your ilk who voted Thatcher into power. Now you moan about the electric, oil and gas companies "soaking us". The precise reason they are "soaking us" is because they are private companies that exist to make a profit. When you take away the profit you'd see a reduction in prices, as a government entity designed to serve the people, not to make a profit.

You're one of only a few people I've ever come across who have slandered the most needy and vulnerable in society as "ba$tards".

Lets hope you never acquire a disability, because I'm sure you won't be needing extra help from the state in order to cope with the disabling symptoms of a heart attack or a brain tumour, etc.

Ciao!


Posted by Mathew, 10th February 2007 6:59pm

Only the "Private" motorist pays the full amount of Duty/Vat.

Haulage Companies, and Company Car's are exempt from the Vat portion, as they claim it back from the Government.

At the moment Companies running car fleets only pay 73.30p/litre on avg for Unleaded 95r. Haulage Companies only pay 76.80p/litre on avg for diesel.

Most "Haulage Companies" have their own tanks, and receive discounts for bulk and forward buying. This brings their cost down even more.

The "private" motorist bears the full brunt of Government taxes, as always.

Posted by Learjet, 11th February 2007 8:30am

Quote:- "The previous writer hasn't been listening to the news the last few day about global warming where all the experts from around the world agree it is a problem?"

Ok then, so when are we seeing the same high fuel prices in all of the other countries, as we see in the UK then?. Actions speak louder than words.

The twelfth of never thats when!.

And if the global warming is such an issue where is the huge tax relief for bio fuel producers, and the investment and massive rolling out of alternative fuels then??.



Posted by Diggity, 15th February 2007 1:25pm

I think Mathew writer of message on 10th Feb should read David Coxson's entry a little more closely. I think that the asteriscs are hiding the word "bulldust" or something a little less polite. I wonder what fuel the dinosaurs used to power their transport that caused global cooling and warming of that era?

Posted by Lance Skinner, 16th February 2007 12:26am

Diesel is more expensive because its also used as a fuel for firing power stations, and for heating homes. Thats why diesel is more expensive in the winter. Or hadn't you noticed?
Its supply and demand at its simplest.

You cant blame the (bloody awful Labour) Chancellor because the fuel duties just now are:
Ultra low sulphur petrol (ULSP) 48.35 pence per litre
Ultra low sulphur diesel (ULSD) 48.35 pence per litre

They've been at this level for a couple of years now, and incredibly we've slipped and become the second highest taxed nation on earth for fuel instead of the first and highest taxed nation. This is a key reason why this government is looking to change the way we pay to use our roads. by charging us independently of our fuel use, ie road tolls, and the orwellian pence per mile charges using satellites to track us, they can lower the fuel duty further still, but still take our hard earned cash!

anyway, i've answered the question and more...

Posted by Ian Dickson, 21st February 2007 12:38am

Erm... so what is the real reason diesel costs more than unleaded in this country? I mean everybody is conflicting each other and I don't know who to believe! >:P

Posted by Mathew, 21st February 2007 1:35am

I drive a small diesel car and i dont understand why it costs more at the pumps to buy diesel. I always thought that getting more mpg and that diesel engines having a lower co2 rate, would be a better choice and would help the environment better than petrol engines.

Posted by Kevin Sanghera, 21st February 2007 9:31pm

I've read all your opinions on why diesel is more expensive, but the real reason is much simpler.
Diesel cars have a better fuel economy than petrol cars and as so many of us have switched to diesel for this reason the government have to increase the duty in order to avoid losing too much tax.
So despite diesel being a cleaner and cheaper fuel, the government are just interested in the cash thank you very much.
Saying that it's still oil based and so we're still stupidly burning out our natural fossil fuels. The quicker we change to sustainable vegetable diesel the better.

Anyone know the rare fact that the diesel engine was designed to run on vegetable based diesel?
Car companies won't warranty their engines to run on vegetable based diesel as it's all the components attached to the engines that are designed to use oil based diesel!

grumble grumble.....

Posted by Marky D, 28th February 2007 1:26pm

I'm convinced your right , MarkD it is simply because the sales of diesel cut down the sales of petrol so the Government ( probably of either colour ) will put up the cost to dissuade us from using it, If LPG becomes popular how long do you think before the duty gets raised to bring the price in line with the other fuels. Politicians have only one priority - Themselves staying or getting into power .

Posted by Ian Scott, 28th February 2007 6:28pm

Back in the 70s (Yawn!) Diesel was half the price of petrol because probably >90% of the average domestic cars ran on petrol, and also the fact that very few available models ran on diesel. However, since Diesel technology has vastly improved since then, and people started realising that Diesels did more MPG and petrol models, the sales of Diesel fuel went up proportionally. The Greedy government realised "whoar, Diesel sales are up Big Time! Lets tax it more!" Simple answer! The next victim will be LPG. At the moment, very few cars run on LPG, thats why it costs around 32p per litre at present. If 30 - 50% of the average population converted their cars to run on LPG, the Greedy goverment will realise this and raise duty on LPG to bring it in line with petrol/Diesel prices. It doesn't matter who you vote for, the (Greedy) government always get in!

Posted by Paul Burnett, 28th February 2007 8:29pm

Incidentally, At present, if you apply and obtain an ASDA store card, and buy your petrol/Diesel with it, you get your petrol/Diesel 2p per litre cheaper. Fine, if you make sure you pay it all at once at the end of the month! Im using mine and getting Diesel for 84.9 ppl.

Posted by Paul Burnett, 28th February 2007 8:40pm

OOOps! I have accidentally reported my own comment No.20. Sorry!

Posted by Paul Burnett, 28th February 2007 8:42pm

My Diesel runs fine on a 25/75% mix of veg oil/Diesel. Veg oil is only 35p per litre! The original engine designed/built by Rudolph Diesel ran on peanut oil!!!

Posted by Bert, 28th February 2007 8:49pm

I drive a Diesel because it has better torque for pulling a caravan, the Government takes a slice of the additional tax paid for the fuel I buy, plus the tax on the increased price I have to pay for the vechicle not to mention the road fund license. As most of the other comments have said it's all about money, when I tour abroard the savings are substantial and because of that this countries resorts lose out, as does the Goverment. (short sighted Gordon)

Posted by Phil Humphreys, 28th February 2007 8:59pm

I thought the reason for the increased retail price in diesel was due to the amount of tax the government charged over unleaded fuel.

Some yrs back diesel went up 2ppl, tax and unleaded was 1ppl

Can someone tell me if im wrong

Posted by J D, 28th February 2007 10:55pm

In France the price of diesel is less than the price of petrol. In the UK when it was found that more and more people were purchasing diesel engined vehicles because they were more economical to run, it was realised that less tax was being gleaned. This addition to tax hits us all because it is deisel engined transport that moves goods from manufacturer to seller, the manufacturer passes the extra cost to the seller and the seller passes it on to us, the buyers. Lesson --- It does not pay to be economical, unless of course, it is with the truth.

Posted by George Mahoney, 28th February 2007 11:25pm

Just been for a week to France. Diesel there is 99.9 euro = approx 70ppl, Petrol is 1.20 euro = approx 84ppl.

Posted by Joe Wiklo, 1st March 2007 8:33am

I have just come back from the Philippines, Diesel is 23p per litre. They import about 90% of their oil. The Diesel probably costs the same to refine anywhere, but probably the handling costs are not as great as here. ie. a average worker get less than £2 per day wherehas here, your looking at £80+ but the main culprit is the tax.

Posted by Tony Frank, 1st March 2007 8:52am

Surely the nub of the matter is that both petrol and diesel are overpriced. If there was a reasonable amount of tax on each it would not matter too much which was the most expensive. I have lived through about a dozen different governments and I have always believed that the general mass of people have been neither better off or worse off than a couple of pounds per week. They tended to give with one hand (say married couples allowance - now defunct) and take with the other (dare I say petrol tax) This has now changed with this government. All Gordon Brown thinks about is TAX TAX TAX oh and little foxy woxy. This is without doubt the worse government in history and the poor sods that follow them will have a lot of clearing up to do.

Posted by Ron Merrett, 1st March 2007 9:59am

Diesel consists of hydrocarbons with between 10 and 19 carbon atoms per molecule, while Petrol consists of hydrocarbons with between 5 and 12 carbon atoms per molecule.

So, one barrel of diesel could potentially make two barrels of petrol.

Now do you see why it costs more?

Posted by Jason, 1st March 2007 7:35pm

Can anyone please tell me why we should be at the mercy of these oil producing countries and why we should pay such a high tax on fuel?
Why is there not more being done to produce fuel from for example rape seed? or sugar (as they do somewhere in South America) using sugar incidentally for fuel might reduce the amount of sugar put into foodstuffs which would ultimately improve the nation's fitness

Posted by Brian Hillyer, 1st March 2007 9:23pm

Unleaded does I believe more damage as the BENZINE contents is higher.

Posted by Philby1, 2nd March 2007 8:16pm

IN REPLY TO 30:
Quote *So, one barrel of diesel could potentially make two barrels of petrol*

25 Gallons is 25 Gallons so the only way you can compare is the weight and not the amount!

Posted by Danny, 10th March 2007 11:17am

There are 42 US gallons in a US Bbl, and 35 Imp UK Gallons in the same Bbl.

In a metric tonne, there are 7.46 Bbl's of UK Diesel, as opposed to 8.45 Bbl's of UK Petrol. This comes about, because of the difference in the specific gravity, of each fuel.

Diesel is heavier than Petrol, and Petrol is heavier than Jet Fuel.

Posted by Learjet, 12th March 2007 3:05am

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

The writer of the article is incorrect when saying that duty is higher on diesel then unleaded petrol, as it's the same, and has been for many years. Also, the extra cost of diesel, as compared to unleaded, is not due to increasing prices of crude oil, because that would impact equally on both fuels.
There seems to be a built-in extra cost of 3-4p per litre for diesel, and I wouldn't be surprised if this fuel has now become a "nice little extra earner " for the fuel companies/retailers.

Posted by David Underwood, 28th March 2007 6:15pm

Welcome to rip off Britian.

If ever there was proof that the oil industry is out to fleece the consumer for every penny, just look at the price of LPG. this product, at the moment is the only freely available envioromentaly friendly fuel thats easy to use and distribute. Owneres go to all the trouble to convert thier vehicle to run on this product, and what happens the OIL COMPANIES not the Goverment rips them off. WE HAVE the LOWEST duty rates on LPG in Europe only 6.5 pence per litre, but guess what we have the most expensive LPG, no suprise there then...but can anyone explain why they don't do this abroad???

Posted by Stuart Grey, 3rd April 2007 11:33am


**** Dont Belive the HYPE! ****

Global warming is bull, its all a ploy for the government to tax us on every green issue going, to restrict our movement and make billions in the process, not that i dont agree with being more environmentally friendly.

Paul hit the nail on the head, the earth goes through phases of warm and cold periods over thousands of years, wake up and dont buy Global warming spin!

Posted by Diamond-geezers@hotmail.co.uk, 11th April 2007 8:37am

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

You think you blokes are in strife...$1.35 for standard unleaded in Australia, $1.40 for premium. We're trying to get the government to reduce the tax on petrol, and so should you. If you put 30 litres of petrol in your car, pay 15 pounds, then go. They can't prosecute everyone. Kill OPEC!!!

Posted by Vincent, 14th April 2007 12:50am

I couldn't agree more, Diamond-g ,I wonder if all the people who believe the "experts" ,know that 30 years ago these so called experts were telling us that a new mini ice age was comming.

Posted by Gwyn, 14th April 2007 9:49pm

vincent we are paying double what you qouted.Your $1.35 is about .58pence.

Posted by Ciaran, 17th April 2007 5:29pm

As this is the only fuel price story in the menu I shall place this comment here now. Though few will read it, many ought to be considering this issue just now:

Why, oh why are fuel retailers raising prices now?
The small tax increase from the Budget is already discounted (or counted in).
The wholesale oil price is steady at around $62 or $63 a barrel.
The pound sterling is way up at $2.01 to the Pound - which makes the price of oil signifcantly CHEAPER to UK-based divisions of the oil companies.

So why isn't the pump price of petrol just now in the low 80s pence per litre, or even lower?

Or are the oil companies, wholesalers and retailers right now just increasing their margin per litre on sales?

Posted by Dave, 19th April 2007 4:11pm

Not quite sure, where you are getting your Oil Price from, but it's a little off. The two weeks prior to Monday 16th, Crude in NW/Europe averaged $68.00/Bbl. Since Monday it has dropped slightly, to an average of $66.20/Bbl.

The Exchange Rate only reached 2.0051 on Tuesday 17th April, from an avg rate of 1.9750, but it must maintain it, to have any great impact on prices at the pump.

On the Products Market, Petrol is on a roll, and increasing faster than Diesel. This is because, the demand is beginning to outstrip Production, and the Price Differential between Petrol and Diesel is starting to shrink because of this fact.

Retailer's make between 3 to 4% of the pump price, prior to deducting their Station Costs, this doesn't leave a lot.

The Base Commodity, Crude Oil is still commanding a high price. To get to a price of 80p/litre, the price of Crude would have to be around $50.00/Bbl, and that isn't about happen anytime soon.

Posted by Learjet, 20th April 2007 1:46am

Having moved over to diesel four years ago i will never go back to driving petrol because the petrol engine is far more complicated and inefficient compared to diesel.
Everything on a diesel car lasts so much longer,the exhaust system especially can last up to well over 100,000 miles because the system never generates the kind of heat a petrol engine does.

Diesel is a lubricant which means every time you start your engine the diesel oil or fuel lubricates the cylinders,petrol on the other hand is a solvent and everytime you start a petrol engine the engine is experiencing far more wear than its diesel cousin.

With a diesel engine you have no spark plugs,ignition leads or much elecrical cabling that a petrol engine has.The days when you had dirty petrol fouling your spark plugs and leading to misfiring and goodness knows what else are a thing of the past.

The big benefit of diesel over petrol is economy.I drive a Citroen 1.4 Hdi and i can easily obtain 70+ mpg.There is no petrol driven vehicle that will approach this kind of economy.

At present the Toyota Aygo,Pegeot 107 and Citroen C1 petrol engines are the most fuel efficient petrol vehicles and yet their best economy figures are around 64mpg,not bad but hardly brilliant when the diesel equifflent of all three cars will exceed 80mpg and this has been verified under tests in vorious car magazines.

If you have never driven a diesel car like myself four years ago you willnot realise how differently they drive to a petrol vehicle.
All the power is low down usually under 3000rpm and is more driver frienndly around town where most driving is done.

A diesel car may cost more to purchase but they retain a great deal more of their value on the secondhand market all because of their desirability for longlevity and reliabillaty.Since diesel works at much higher compression rates than petrol engines everything is more robust and built to withstand the extra strains of daily use.

If you can forget the small difference in fuel price,2p in my local garage then when you become a diesel convert you usually remain a convert and realise how tempremental petrol engines are especially in hot weather.

The fact that diesel is usually cheaper on the continent is because it is far less harmfull to the environment than petrol.Compare the CO2 of petrol vehicles to diesel ones.
Also over the past three years diesel cars are taking a greater share of the new car market because people are realising the benefits of the diesel engine.

Look at every mode of transport from Buses,Trains,Taxis,Large Haulage Lorries ,massive container ships and possibly everything else connected to haulage,they are all Diesel operated,petrol is just too inefficient to cope in business terms.

Some of the massive Haulage ships have engines that are nearly 70% efficient ie 70% of every gallon of diesel is used to power the ship forward.

The average diesel powered car is 55% efficient compared to the 30-40% efficiency of petrol.That means for every gallon of petrol you pour into your car atleast half of it is going to waste and is not used in the combustion process.

Currently the mot fuel efficient car in the world is the Volkswagen Lupo 3L 1.2Tdi which achived an amazind 116mpg on its round Britain fuel efficiency run in 2005.It also holds the record of travelling around the world averaging constantly more than 100mpg.
No matter what people say a petrol car would never achieve that level of economy because the petrol engine is so inefficient in comparisson.

Gordon Brown taxes diesel so heavily because all his revenue from transport vehicles which is massive comes from diesel fuel.
If we all suddenly turned to driving petrol vehicles then the cost of diesel would fall because there was less demand for it.
The more demand there is for a product the more we will be charged by the Government to use it.

Posted by Peter Jr Lewis, 21st April 2007 10:19pm

Petrol Prices and transport infrastructure are one thing, but whilst pillocks like Paul Ponchaud still exist spouting absolute rubbish the world will never change.

'We are just going thorugh a warm phase, that all' You talk about it like it is some 5 year period.

17 of the last 20 years have been the warmest in history, noramally climatic changes occur over hundred if not thousands of years, not 20.

Temperature and carbon levels correlate closely, inconvenient for the world but true. Face the facts and live with them.

Posted by Michael Cooper, 25th April 2007 1:15pm

Quote " Posted by Lance Skinner I wonder what fuel the dinosaurs used to power their transport that caused global cooling and warming of that era?"

Quote "Posted by Diamond-geezers **** Dont Belive the HYPE! ****
Global warming is bull, its all a ploy for the government to tax us on every green issue going, to restrict our movement and make billions in the process, not that i dont agree with being more environmentally friendly.

Paul hit the nail on the head, the earth goes through phases of warm and cold periods over thousands of years, wake up and don't buy the Global warming spin!"

The above posts say it all. "Global warming is bull", I watched a programme by some TOP Scientists, it was called "The Great Global Warming Scandal" in the programme they said it was all a myth and the earth has been heating and cooling like this for 1000's of years. As Diamond-geezers say it is just a ploy for the government to rip us off with TAX, TAX, TAX and more.

I drive a diesel car and because it is far less harmful to the environment than petrol so I pay less road tax, it has just gone down to £35 as has been said you get more miles to the gal my car gets around 64 MPG. I noticed today the cost of diesel in my town has gone up to 95.9/ltr I am going to Liverpool tomorrow and have found a service station selling diesel for 89.9/ltr so I will be filling my tank. All this saving thanks to Petrol Prices.Com.

Bob W

Posted by Bob W, 25th April 2007 10:37pm

Yet again Diesel car drivers in the UK seem to be paying more for their fuel unlike our counterparts abroad. Perhaps we all ought to boycott the pumps a few times to force the government to lower our fuel prices in line with the rest of Europe. Everytime another country gets into difficulty they look at Great Britain to bail them out, has anybody ever thought where this money comes from to give away? TRY THE MOTIRISTS who always bear the brunt!! Anybody agree?

Posted by Paul Johnson, 30th April 2007 7:15pm

Diesel is barely more expensive than petrol at the moment. It should cost more because it is more energy and carbon dense than petrol. The price per litre should purely be based on the energy per litre. Even then burning 1litre of petrol produces less co2 than 1 litre of diesel. I don't even view petrol as oil, its more of a solvent waste product. Don't buy it and it goes down the drain anyway - worthless. I'm on the verge of buying a £300 diesel and running it on veg oil.

Posted by Chevron Corp, 30th April 2007 7:31pm

Hi- can anyone one point me to the governments recommended price per mile for business- FOr example- my company payed 40p per mile- the new comapny is 24p!!!!
I have been told there is a figure recommended by the govt. but where on their many sites is it??

Any help appreciated folks

Posted by Iainmacintyre, 3rd May 2007 12:22pm

Hi Iain,

The max approved rate is 40p/mile, up to 10,000 miles per tax year. Thereafter 25p/mile above 10,000 miles per tax year.

The website "HM Revenue and Customs" gives you all the information.

Posted by Learjet, 3rd May 2007 6:00pm

Thanks for that response, is there a lower limit up to 10K miles??

Posted by Iai Macintyre, 4th May 2007 8:14am

If your employer, pays less than 40p/mile. The difference is claimed using "Mileage Allowance Relief". There is no lower limit.

This will bring it back to 40p/mile or £4000 per year "Tax Free" for the first 10,000 miles. Different companies do it, different ways, depending on the actual mileage, rather than the "expected" mileage.

Posted by Learjet, 4th May 2007 10:53am

carbon particulaly co2 is a green gas it is part of a complicated earth formular that without it we would not have trees grass seaweed and many other organic life forms consequently in 10000+ years time we will have no fuel then.solution keep on at current levels plant more carbon locking plants/life forms.

Posted by John Heppell, 10th May 2007 11:27pm

As of yesterday evening (friday) it seems that in the East Midlands petrol costs the same as diesel. What a rip-off not only is burning a litre of petrol always going to be cleaner than burning a litre of diesel, it will release less co2. It has LESS ENERGY in it per litre so we ARE BEING RIPPED OFF by the oil companies who think they can getting away with overpricing an inferior good.
The government should realise that petrol is more eco-friendly than diesel and maintain the gap by cutting petrol duty.
Diesel has over 10% more energy per litre so if diesel costs 95p/litre then petrol should cost 87p/litre.
I WILL NOT BUY FROM ANY GARAGE CHARGING THE SAME FOR BOTH IF I CAN AVOID IT - OTHER PETROL OWNERS JOIN ME IN THIS. Especially tesco who sell dodgy petrol that either lacks additives or are flooded in them (silicone incident) and charge the same as elsewhere.

Posted by Ripped-off, 12th May 2007 1:19am

I agree with the above comment. If the government don't reduce duty on petrol to maintain at least a 4p gap, I am going to stop recycling my newspapers and burn them instead. Fobbing us petrol owners off will be worse for the environment than treating us fairly ie. taxing us proportiantely to how we pollute.
A part of me thinks this is a deal between car makers and the government:
"Squeeze the petrol owners and force them to buy exactly the same car with a diesel engine costing £2000 more."
The car makers get £1600 more for an engine that costed £90 more to make. (I know they deal with higher pressures and are stronger but how much does an extra 20kgs of aluminium alloy cost - there are cheapo Al-alloy bikes selling for £55 new and they (both makers and sellers) are still making a profit.
The government gets £400 in VAT.
I know diesels are more economical but what you save at the pumps is taken by the car makers instead so it's pointless.

Posted by Diesel-sux-and-stinx, 12th May 2007 1:40am

The reason for the shrinking gap, between the retail price of Petrol and Diesel is quite simple. European Refineries produce more Diesel from a Bbl of Crude Oil than Petrol, and have done for a number of years.

Their American counterparts, produce more Petrol from a Bbl of Crude Oil, than Diesel. American's don't have much time for Diesel Fuelled cars.

Over the past weeks, the demand for Petrol has jumped worldwide. On the Products Market for NW/Europe, Petrol closed at 29.02p/litre, Diesel closed at 26.58p/litre Friday 11th May.

Both prices at the pumps are moving upward, just that petrol is moving the faster of the two. European refineries cannot keep up with "Demand" for Petrol, this creates a "shortage", this in turn creates high prices for the product.

In the USA, where Diesel is normally priced higher than Petrol, a gallon of Diesel is actually 25 cts/Gal cheaper than Petrol. Again, this is refineries not keeping up with demand for the product.

The annual surge in Petrol consumption, during the summer driving season, has begun a little earlier this year. Mainly, because carmakers are flooding the "new" markets with their products.

While this situation remains, the price of both fuels will climb, regardless of the price of Crude Oil. Pump Prices, are being controlled by the Products Market at the moment. Welcome to the world of Global Markets, and their ilk.

Posted by Learjet, 12th May 2007 7:05am

We are rapidly reaching the £1 per litre fuel costs. With prices of oil going down diesel and petrol are still going up. Our local Tesco supermarket has been increasing its prices by 1p on an almost daily basis. We have passed on three occasions this week and each time the prices has been increased. Unless motorists do something to hit these greedy suppliers very soon, we are going to be paying very highly for our fuel. I live in a very rural area which I love, but I need my vehicle and the distances between main towns are quite considerable, so any increase in fuel hits me very hard in the pocket. I dont drive a gas guzzling car - mine averages 43 to the gallon so is very economical. These petrol companies and outlets have us over the proverbial barrel and will continue to do so until we find a way of making them reduce their prices.

Posted by Patricia Wilson, 14th May 2007 8:55pm

The Retail price of Petrol is just shy, of what it was a year ago. The Retail price of Diesel is 2p/litre cheaper, than a year ago.

The price of Crude Oil has started to move upward. On the Products Market Petrol and Diesel, continue their climb. It doesn't look good for motorist's.

The only way to bring prices down, is to curtail the use of cars. This can be difficult for many people, but as our favourite Supermarket claims " Every little helps".

Posted by Learjet, 15th May 2007 1:19am

ALL OTHER COUNTRIES IN EUROPE DIESEL IS CHEAPER THAN UNLEADED PETROL AND SUBSTANTIALLY CHEAPER THAN UK.WE LIVE IN RIP OFF U.K. AND WHAT IS SUPRIZING WE ALL ACCEPT IT. OIL PRICES ARE DOWN AND THE DOLLAR IN WHICH CURRENCY OIL IS PURCHASED IS IN OUR FAVOUR SO HOW DOES PETROL KEEP GOING UP. GREED?

Posted by Allan Groden, 15th May 2007 9:59am

As of Monday 14th May, the avg pump price for Reg(95r) across the UK, was 95.84p/litre. Diesel stood at 96.79p/litre.

Crude Oil (NW/Europe) closed at $66.03/Bbl (up). The exchange rate was 1.9805 (down) for that days business.

On the Products Market, Raw Petrol closed at 29.20p/litre. Diesel closed at 26.28p/litre. This is before the inclusion of additives or delivery to stations.

The tax burden, carried by both fuels is the highest in the world. Oil companies do not set tax levels, Governments do.

At the moment, minus all taxes. Petrol is cheaper in the UK, than the USA.

Posted by Learjet, 15th May 2007 2:15pm

Well if petrol is cheaper in the UK and we are still paying more the government needs to drop the tax. The environment tax trick has turned the environment into an enemy. Green taxes (petrol duty) mean I have to work longer to have thew same disposable income. SO I no longer have time to deal with sorting rubbish for recycling. It now all gets put in the rubbish bin that goes to landfill: glass, newspaper, plastic the whole lot.
Pissing us off in the uk with tax whilst everyone else in the world drives around cheap will lead to more of this.

Posted by Nulabour-sux, 15th May 2007 8:16pm

Fuel Duty on both Petrol, and Diesel is set to rise by 2p/litre plus Vat, on October 1st 2007. Then, by the same amount on April 1st 2008, in other words twice in six months.

Now add, the proposed "Road Charges" pilot schemes in certain area's, due for rollout in 2008. The "Freedom of the Road" is turning into an expensive "sentence", based on enviromental concerns.

Most people's "disposable" income is shrinking, faster than they can earn it. Due mainly, to increased taxes, and charges they are required to pay. Coupled with, the increasing number of ban's being put in place. At some point the general public, may say "enough is enough".

Posted by Learjet, 16th May 2007 6:28am

Diesel is more expensive than petrol because there is more tax on it. Diesel which was 5 p dearer than petrol in my area, is now 1 p cheaper, effectively an increase of 6 p in the cost of petrol! Can anyone explain why?

Posted by Richard M Wells, 16th May 2007 9:35am

Ultra Low Sulphur Petrol, and Ultra Low Sulpher Diesel, along with Sulphur Free Petrol and Sulphur Free Diesel are all taxed at the same rate . 48.35p/litre Fuel Duty plus Vat. Most car's use this fuel n the UK.

"Conventional Diesel" at 2000ppm/Sulphur and above, carries a Fuel Duty of 54.68p/litre plus Vat. This is mostly used by commercial ventures, not car's.

Most private car's are still petrol driven, the demand for petrol worldwide, far exceeds the demand for diesel worldwide. This accounts for Petrol's rapid price rise, compared to Diesel. Both fuels are on the rise, but the price gap has virtually disappeared.

European refineries produce more Diesel than Petrol, thus when Petrol Demand is high, so are the prices. This situation may not last too long, after the "summer driving season" ends.

Posted by Learjet, 16th May 2007 10:24am

FHJFSDKFHEHFJS

Posted by Bob, 17th May 2007 12:32pm

I have been a diesel car owner for nearly two years, and finally the cost between unleaded and diesel has levelled off. I have paid up to 7 pence per litre difference, when achieving 65mpg on normal driving, comparing to mid 40s mpg for an efficient petrol engined car. Why should I pay 7ppl more when I'm using so much less fuel?

Posted by Matt, 18th May 2007 8:45am

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

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

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

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

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

Just my luck that when I finally get a diesel car (Mondeo), the price has gone up higher than petrol!! But I still find it more economical - 40 - 50 mpg average, not bad?

Posted by Penny, 22nd May 2007 12:48am

this is the most silliest thing that is happening with petrol now...no matter how mjuch petrol uk and usa take for the lives of muslims in iraq...you would think that petrol would go down by 10p or less...every summer the petrol goes up....its now 97.9 in my area.....this is BS...VOTE OUT LABOUR.....get rid of them......i have a rover 214 si that gives me 215 miles for £30,.....thats expensive for me being a student....i would rather shift to diesel tho...

Posted by K, 22nd May 2007 2:56pm

The price of fuel in south wales has gone silly why is it that petrol is now more expensive than diesel??

Can anyone tell me??

Posted by Marc Thomas, 9th June 2007 10:55am
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