Why is diesel so expensive in the UK?

[Eddles]

I always accepted diesel was a few pence more expensive than unleaded and I came across 2 explanations that made sense. I was delighted to see the recent fuel price cuts driving diesel down to the same cost as petrol so I could pick diesel up at 100.9p per litre. However, going on holiday in Ireland, the best price for diesel is 102.9 cents per litre whereas petrol is 117.9 cents per litre. Changing to pence, its 90.2p per litre for diesel and 103.2p per litre for petrol. Northern Ireland has roughly the same prices as the rest of the UK. What is going on, why is diesel so expensive in the UK compared to petrol considering Irish diesel is the same stuff as UK diesel?

[SVOboy]

Perhaps the local taxes are different?

[robchalmers]

Robbing B*stard oil companies - thats what. they've realised it simpler to have a common price for P and D But they also realise more people are buyin more diesel (sales reps etc) and seeing how there is more of a margin in diesel as it takes less money per litre to produce they brought that in line with petrol.

I to feel you're pain having gone to petrol when it was cheaper than diesel last year - I'm now feeling the pinch as the costs are rising again Asda (wallmart) have it at 102.9 here but on the way to crewe I pass two places that have it at 107.9 (over a $7 gallon to our US friends).

Gordon Feckwit Brown isn't helping either...... (I won't truely vent because its a family site)

[vtec-e]

I believe it's in the region of 60% tax on petrol and diesel. The current emissions buzz will die off when there is a suitable percentage of people using diesel. Then they'll rise the taxes on that. Our Great Leaders are putting a 200 euro per annum levy on people who work in Dublin and have company car parking. Apparently it is to reduce congestion.... But they are forgetting that heavy traffic has died off since a load of people have lost their jobs and no longer commute.
What a mess.

ollie

[Piwoslaw]

There definately is a much larger market for diesel, since only small cars use petrol, while everything else (exept for space shuttles) is on diesel. Of course, companies are trying to increase their income - who isn't? Anyway, fuel prices have absolutely nothing to do with their cost of production, it's all politics, taxes, economics, etc.

Recently, I've noticed that each time the news says that fuel prices are going up I feel something like relief. "Maybe someone will finally get a hit in the wallet and start taking the bus." I know that I'll have to pay more at the pump, but my increase will be smaller than everybody else's. Maybe they'll stop laughing at my aeromods?

[robchalmers]

hahaha good point well put!

saying that - its still amazing to me that they can dig it, bring it halfway around the world, refine it and sell it for rougly 33p a litre before tax

[Eddles]

Thanks to all for your comments!

[blueflame]

Here in NZ diesel sells for $1.02 and 91 petrol for $1.65 per liter. Vehicles are taxed per 1000km, typically a 2l Diesel car pays $35 per 1000km tax, heavier vehicles progressively more. Its based on weight. No road tax on petrol.

Farmers dont pay road tax on diesel vehicles. Its an old system, designed for farmers. Was only $18 per 1000 not so long ago.

Many owners wind back their speedos before each inspection, saving $$$ in road tax.

The government is looking to change things as so many people are dodging this tax.

[solarguy]

There have been discussion in the US about changing the way driving and autos and fuel are taxed. The "problem" is we are finally getting vehicles that get better FE, and we are changing our driving habits and also driving less.

The net result is the feds and the states are generating less revenue from fuel taxes.

The government HATES getting less revenue, so...

We just about have all the technology in place to have all cars with an embedded gps thingee, and you pay per mile x other factors like weight x other factors like busy city = higher tax, etc etc etc. This will also "fix" the "problem" presented by electric vehicles, which currently avoid fuel taxes.

Jerks.

troy

[tjts1]

Ill wrap my big brother GPS antenna in aluminum foil. Tax that you greedy....