Fuel production efficiency

[Peter7307]

Originally Posted by Piwoslaw

So why is diesel cheaper than gasoline in most parts of the world?

In a word: TAX.
The actual cost of the litre of gasoline or diesel you pour in your tank has little direct connection with the cost of getting into the pump.

Here in Australia we pay around 52c per litre tax on a retail price of $1.25...about half in other words.

Motorists world wide are the cash cow for many governments where as if they hit diesel with the same rate of tax they run up against their sponsors and supporters in the form of larger companies and organisations.

Cheers ,Peter.

[Piwoslaw]

Right. Gas is only for small vehicles, so it could be viewed as a luxury, in a way. On the other hand, diesel is is needed for transport, so increasing its cost would cause prices to go up, increasing inflation, etc.