Why is Petrol getting cheaper, but Diesel isn't?

DubDani

For the last few weeks I have seen that Petrol gets slightly cheaper at my local filling station, from 115.9 to now 110.9. But Diesel on the other hand hasn't moved a bit. It is and was 104.9 all the time.

Anybody know why Diesel doesn't get any cheaper if Petrol does?

just curious, I guess...

Mitch Connor

using the diesel to partially subsidise the petrol prices?

ArphaRima

AFAIK Diesel goes through a completely different production line(extraction, refinement, delivery etc.) than petrol. They tend to rise and fall together, but they are not linked. Supply and demand. And demand for diesel has been rising steadily for years. Think about how many Tdi's you see these days in Ireland.

Also as its separate, it can be influenced by completely different factors. eg. refinery specific to diesel with workers on strike etc...

Stephen

How much do you want to bet that the current hurricane in the gulf of mexico will be used as an excuse for a big bump in fuel prices in the coming weeks?

prospect

I think Diesel often subsidises petrol prices.

Gran Hermano

Petrol subsidising diesel is not true, it's a Fluffer said simple supply
and demand. Historically and on a global basis most motor fuel
refineries were geared to petrol production - think how many diesel
cars are in the US. Europe has seen serious increases in the manufacture
of diesel engines over recent years and it's a case of the refineries
playing catch-up in the switch over.

prospect

Gran Hermano wrote:

Petrol subsidising diesel is not true, it's a Fluffer said simple supply
and demand. Historically and on a global basis most motor fuel
refineries were geared to petrol production - think how many diesel
cars are in the US. Europe has seen serious increases in the manufacture
of diesel engines over recent years and it's a case of the refineries
playing catch-up in the switch over.

I said Diesel subsidises petrol.

Although what you say about demand is partially correct, i.e. there are more petrol cars than diesel, don't forget that there are also a hell of a lot of Trucks, Vans, Buses, Trains, Tractors and other machinery that use diesel.

Kimbot

Plus coming into Winter is when Diesel makes more of a profit from what I remember!!

E92

Don't forget, many European manufacturers will be offering the Yanks diesels next year, and even American car companies are getting in on the act; Ford's F150 will soon be available with a V8 paraffin stove, the Celebrus Group(Chrysler, Dodge, Jeep) have started offering the Yanks Merc's 3.0 CDI Diesel in too many cars to mention, and even Honda are going to offer a Diesel Accord in 2009 instead of a Hybrid for the Yanks.

So since even Amrican journalists are complaining that BMW have no plans to sell a diesel 1 series Coupé in the US, they will switch to some degree to Diesel, when they realise that they have been missing out on something the Europeans caught on to a decade ago. After all look at how fast they switched to Hybrid technology.

So that in a market as large as theirs will surley mean that diesel sales will rise further, and therefore make diesel more expensive and petrol cheaper again.

ciarsd

E92 wrote:

So that in a market as large as theirs will surley mean that diesel sales will rise further, and therefore make diesel more expensive and petrol cheaper again.

Now that's a sweeping statement! :eek:

alias no.9

Diesel remained relatively stable, pricewise over the last few months, petrol increased considerably. What you're seeing now is a slight correction. Expect the prices of both to converge for the winter when the demand for diesel as a home heating fuel pushes up wholesale prices. It often happens that diesel becomes more expensive than petrol for a short period in the winter time at many stations.

E92

E92 wrote:

Don't forget, many European manufacturers will be offering the Yanks diesels next year, and even American car companies are getting in on the act; Ford's F150 will soon be available with a V8 paraffin stove, the Celebrus Group(Chrysler, Dodge, Jeep) have started offering the Yanks Merc's 3.0 CDI Diesel in too many cars to mention, and even Honda are going to offer a Diesel Accord in 2009 instead of a Hybrid for the Yanks.

So since even Amrican journalists are complaining that BMW have no plans to sell a diesel 1 series Coupé in the US, they will switch to some degree to Diesel, when they realise that they have been missing out on something the Europeans caught on to a decade ago. After all look at how fast they switched to Hybrid technology.

So that in a market as large as theirs will surley mean that diesel sales will rise further, and therefore make diesel more expensive and petrol cheaper again.

The yanks missed out on diesel not because they didn't want it but because their laws on emissions are different to europe. Diesel performes poorly on particulate emissions compared to petrol. New filters that remove these from exhaust gasses are making diesels possible in the states.

Biro

E92 wrote:

Don't forget, many European manufacturers will be offering the Yanks diesels next year, and even American car companies are getting in on the act; Ford's F150 will soon be available with a V8 paraffin stove, the Celebrus Group(Chrysler, Dodge, Jeep) have started offering the Yanks Merc's 3.0 CDI Diesel in too many cars to mention, and even Honda are going to offer a Diesel Accord in 2009 instead of a Hybrid for the Yanks.

So since even Amrican journalists are complaining that BMW have no plans to sell a diesel 1 series Coupé in the US, they will switch to some degree to Diesel, when they realise that they have been missing out on something the Europeans caught on to a decade ago. After all look at how fast they switched to Hybrid technology.

So that in a market as large as theirs will surley mean that diesel sales will rise further, and therefore make diesel more expensive and petrol cheaper again.

The problem is that it's easier to find a petrol station that has hydrogen than it is to find one with a diesel pump in America!