Why is Diesel So Expensive?

[TorqueVR]

It's always cost more than petrol but the difference is now about 20p a litre. Why is that?

[Jordie Barretts sock]

I was going to ask this. It's nearing 30p/litre more near me. And Adblue, what's happening there? Blatant profiteering I guess.

[fridaypassion]

Definite price gouging. Go into Europe it's always cheaper.

[paradigital]

Given that typical production yields around twice as much petrol as diesel per barrel of crude, and demand of diesel is higher due to heavy industry, transport and other high-consumption industries, it stands to reason that when there is a price rise, diesel increases more than petrol at the pump.

[Draxindustries1]

fridaypassion said:

Definite price gouging. Go into Europe it's always cheaper.

Much cheaper in South America. Equivalent of 10pence a gallon (USgallon) in Venezuala. A country that will always be free of the EV..

[Oldaker]

Back in the 1970's, before diesel cars became popular, diesel was around 10p per gallon cheaper than petrol. I remember driving a diesel Vauxhall Cavalier when they first came out - horrible thing. Absolutely no power ( no turbo's in those days ) , noisy and forecourts always had the diesel pump over to 1 side, away from the main pumps to allow larger vans/lorries easy access, so there was always diesel spilt on the ground that you had to stand in while filling up. The only people buying diesel cars in those days were taxi drivers

[Draxindustries1]

paradigital said:

Given that typical production yields around twice as much petrol as diesel per barrel of crude, and demand of diesel is higher due to heavy industry, transport and other high-consumption industries, it stands to reason that when there is a price rise, diesel increases more than petrol at the pump.

Diesel is less refined than petrol and is cheaper to produce. It gets cheaper down the chain ie bunker fuel oil/ heavy fuel oil.

[InitialDave]

As we're heading into winter, does demand for heating oil cut into diesel supply and pricing?

I've heard this said before, but wasn't sure how significant it was, or maybe more an American phenomenon.

[DMZ]

Plus it’s used for power generation to make up for lack of gas. Many power stations are dual fuel so they can switch depending on pricing. Also Russia is a major source of refined oil products so there is also a refinery crunch on top of everything else.

[Jawls]

Europe is structurally short of diesel because all of our refineries are old and predate dieselisation of the carpool.

Russia was a major exporter of middle distillates (this includes diesel).

So, supply has gone down (Russian material not acceptable to European markets), demand unchanged, price goes up.

[Jawls]

InitialDave said:

As we're heading into winter, does demand for heating oil cut into diesel supply and pricing?

I've heard this said before, but wasn't sure how significant it was, or maybe more an American phenomenon.

Refineries have limited ability to swing between jet fuel/heating kero production and diesel. But generally, whilst your heating kero demand goes up in winter, your jet fuel demand falls relative to summer.

Margins generally stronger on heating oil though, though it’s a much smaller business.

[markymarkthree]

It's the governments way of forcing us to go electric.

[GroundEffect]

Jawls said:

Europe is structurally short of diesel because all of our refineries are old and predate dieselisation of the carpool.

Russia was a major exporter of middle distillates (this includes diesel).

So, supply has gone down (Russian material not acceptable to European markets), demand unchanged, price goes up.

Interesting. Do you have any summaries of the various sources/producers of each grade?

[InitialDave]

markymarkthree said:

It's the governments way of forcing us to go electric.

Driving an electric car is a lot nicer than driving a diesel.

[Matt Clay]

Draxindustries1 said:

Much cheaper in South America. Equivalent of 10pence a gallon (USgallon) in Venezuala. A country that will always be free of the EV..

Great example.

[anonymous-user]

InitialDave said:

Driving an electric car is a lot nicer than driving a diesel.

Care to elaborate ?

[Glosphil]

Waitforme said:

InitialDave said:

Driving an electric car is a lot nicer than driving a diesel.

Care to elaborate ?

Wrong thread for that. Plenty of other places to discuss that.

[pistonheader10101]

better still - get a bicycle

[mikal83]

My local Tescos, the only "petrol" station around, has run out of diesel again!

[Draxindustries1]

Jawls said:

Refineries have limited ability to swing between jet fuel/heating kero production and diesel.

Jet A1 is basically kerosene with a few additives, one being to lower the cetane number. , it's actually easy to produce , no switching is necessary.
Jet A1, Kerosene/ heating oil are all the same family of fuels.
Totally different being Avgas which is 0.6% lead added to non ethanol petrol making it the equivalent of the old 5 star ..