My 2 Eurocents worth:
In Germany diesel has almost always been *cheaper* than gasoline, because it's subject to less fuel tax (presumably to help the truckers). As a result, people are buying diesels like mad, even in the smallest cars, despite higher purchase prices and higher vehicle taxes. As a result, demand for diesel is increasing and, because you can only get a certain amount of diesel out of a gallon of crude, the price disparity has recently been whittling down.
Diesel engines are inherently more efficient (something like 35% vs. 29%), but NOx and particulate emissions remain a problem. The latter is being addressed by particle filters, which fortunately are being delivered in most new diesel cars.
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You ever notice that birds pulse & glide, too?
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