Explaining county fuel prices

Saturday 13th June 2009, 8:00PM BST.

petrol_station-53Is the already put-upon Shropshire motorist being taken for a ride?

It was sold as the ‘green’ fuel and years ago, in the dim and distant mists of time when it was still perceived as belting out thick black plumes of smoke, diesel used to be far cheaper than petrol.

That was one of the reasons people bought a diesel-powered car in the first place, along with the fact that their engines were supposed to be more fuel efficient and run for longer.

But in the last few years things have changed. Diesel was no longer cheaper. Last year the price overtook unleaded petrol by few pence per litre and the differential was ever widening – by 13p at some filling stations.

Today, as motorists trawling the service stations for the cheapest fuel, they find in some cases petrol is more expensive than diesel, and in other diesel is more expensive than petrol.

What is going on? Why, on some Shropshire forecourts, is unleaded more expensive?

Anyone with a GCSE in chemistry will tell you that diesel requires less refining than unleaded petrol, and uses less crude oil to produce. Why, then, did it become more expensive in recent times?

The answer – or at least part of the answer – is that our new, cleaner and greener diesel wasn’t actually as cheap to produce, at least not initially.

Although diesel requires less crude oil per litre than petrol does to produce, established standards for lower sulphur diesel required a more complex refining process.

And hey presto, the price of diesel at the pumps went up. The chap with the chemistry GCSE might have his clever equation, but so does the chap with the maths GCSE: greener equals more expensive.

But that was a few years ago now when diesel was taxed more heavily, so why, in some cases, is unleaded more expensive?

It could be that the majority of cars on the road in the UK – just about – still run on unleaded petrol and are thus more at the mercy of market forces, so there may be scope for increasingly competitive sale of unleaded petrol at the pumps.

Fluctuations between the prices of unleaded and diesel have in the past been a result of greater changes to unleaded prices than to diesel’s.

But, like the rest of us, Telford road campaigner Peter Roberts is at a loss to explain the difference in price today between fuels, although he says high-performance unleaded has always been more on a price par with diesel.

“It’s more down to what oil companies can get away with than anything,” he says. “The tax on both diesel and unleaded is the same. It is the whim of the oil companies who want to make a profit. There’s no logical reason.”

And so the jockeying between diesel and unleaded petrol prices continues. As the price nudges well over £1 a litre for both, at the moment it’s anyone’s race.

And motorists will have little choice but to go on coughing up for their fuel, whatever the cost.

By Ben Bentley


  1. 1
    Brian

    Just something for everyone to mull over.
    Since I have lived over here in the U.S. I have been amazed at the way Petrol (Gasolene) fluctuates in price.
    Coming up to the weekends prices rise by a few cents only to drop back a few cents on Monday or Tuesdays.
    Diesel has in recent years been more expensive than petrol despite the fact clean diesel has only just started to be sold over here and there are very few diesel powered cars.
    Petrol prices have steadily crept up since the presidential election. (About $1:60 then, $2:69 now) Very strange! would you believe leading up to the primary elections petrol fell in price only to start to rise the very day after the primaries.
    People are very quick to point the finger at OPEC> I have my doubts! I suspect there are people on the stock exchange and maybe even the bildeberger group are behind oil prices and many more market forces.
    You haven’t heard of the Bildegerger group. neither had I until recently but they have been around a long time. Look them up on your computer. You may be amazed and educated.

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  2. 2
    Cracker

    I’m not an expert, but I’m not sure that it’s correct to say that tax on diesel and petrol is the same.

    My understanding is that the level of tax is based on calorific value and because diesel is denser, (just one reason for its better fuel economy), it’s taxed at a slightly higher rate.

    The other point is that diesel refining capacity is not capable of meeting UK market demand, so we have to import it.

    Having said that, drivers ARE at the mercy of fuel suppliers, but then what do you expect? They’re in business to make a profit. They’re hardly likely to implement a policy of selling at the lowest price possible out of the goodness of their hearts, are they?

    At least consumers have a choice of what type of car to run, how heavily to drive the car, whether to use an alternative, etc.

    The scandal in the UK are the charges for electricity and gas, which should run on a roughly parallel path to petrol due to similar sourcing of raw material, but which are seemingly controlled by a cartel which ensures that when raw material prices go down, there’s no market competition to push consumer prices down.

    Regulators in this country have shown themselves to be either hopeless (e.g. banks and finance, parliament’s fees office, etc.) or seemingly in league with the companies that they’re meant to be regulating, (e.g. electric, gas, train fares, etc.), and the public always suffer.

    If the people who regulate had to get by on the wages of the common people, there would soon enough be a change to prices and it would be DOWNWARD.

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  3. 3
    Spudgun Heskey

    I was running my Peugeout 306 D-Turbo on bio diesel for a while & it ran cleaner & started from cold brilliantly.
    My Bio diesel supplier shut down & moved to Stourport on Severn last year & now I have to put pump diesel in when I use the car.
    I wish there was someone commited to supplying Bio-Diesel in the Telford/Shropshire area.

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  4. 4
    Hilary

    … been taken for a ride?

    Grammar and spelling pleeeease :(

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  5. 5
    merc

    ‘Is the already put-upon Shropshire motorist been taken for a ride?’

    Yes we were.

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  6. 6
    Lucy W

    Sometimes the bread is cheaoer in Aldi, sometimes Asda. Then Aldi don’t do thick anymore so you go the Asda, who put the price up and Aldi lower theres to get you back.

    Prices fluctuate in a free market – thats all.

    Anyway the Patron Saint of Polar Bears (Al Gore) drive an Audi Diesel now (A6 I think), since he officially endorsed Audi cars.

    He just can’t get enough of fosil fuels these days.

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  7. 7
    Keith

    The main reason Diesel has been sold for a higher price than petrol for the last few years is that sales of Diesel have increased dramatically whilst petrol sales have fallen. It is the same reason as to why Diesel cars have been much dearer to purchase than the extra cost of manufacture justifies. Diesel fuel contains about 10% more energy than petrol and the engines are approx. 30% more efficient. That is why all commercial vehicles are Diesel powered and most cars above 1400cc.

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  8. 8
    dan

    why not all drive less instead ?? easy

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