Diesel Price VS Petrol

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werner

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The price of diesel per litre is now in many garages 10 cents more expensive than petrol.

The wholesaler/Garage pays less excise duty in the region of 9 cents a litre to the government so it is even more profitable for a garage to sell diesel

As an indirect consequence of Min John Gormleys utter incompetence in adjusting the VRT rates in a fair manner, the (VRT rates post July now favour diesel engined cars) the motorist is now being ripped off by garages charging a higher diesel price to take advantage of the switch to diesel engines.

It's not much use shopping around as they are all at it

Is there a regulator with teeth that will address this issue?

What do you think?
 
It is amazing that it has gone from being 10 cent cheaper to 10 cent dearer in the space of months. I was the ejit who bought a diesel last year so I'm being screwed every way!!
 
As someone who works in the oil industry I can tell you the forecourts are not making 10 cent more on Diesel than on Petrol! The difference in the forecourt purchase price bewteen the two is less than 1 cent, and the Diesel is more expensive. Its the big oil companies who import the oil who may be making the profits but I certainly know some forecourts who are now even making 1.5cent a litre on Diesel and Petrol at the moment...
 
i think its got to do with the way oil is refined, both petrol and diesel are formed in the refining process, (im not an expert but im pretty sure this is the case), therefore even if there is more demand for diesel , they still have to make petrol also, because europe has alot of diesel cars, they have to import the extra diesel from the US as they don't use as much of it there and export the extra petrol to the US, it seems a bit silly as you are wasting fuel moving it around like this, maybe best to stick with petrol
 
AFAIK the price is high because of overconsumption in N America - due to the very cold winter. It is being routed to the domestic heating market. In lots of the north eastern states this winter is the worst since records began.
 
price for diesel over here in England has been higher for years and is currently about £1.12 per litre (sterling)
 
Just to update yesterday's post, the cost of diesel is now £1.17 per litre at the same filling station which was yesterday's subject.
 
If some forecourts are just making 1.5c/l on fuel, then how come a place near me is selling fuel for 5c/l less than the others ? Is he making a 3.5c/l loss? Doubtful ! He's not on the main roads but all the locals know it exists. He also sells kero and agri diesel.

How is it that the prices are sticky? ie when the crude goes up, the pump prices go up instantly, but whe crude drops , it takes a few days for the pump prices to drop, and never to the same extent ?
 
Whatever rubbish is put up as an excuse the simple fact is that oil is traded in $ and yet the $ has collapsed against the €. Why have we not seen this reality reflected in fuel prices?
 
xavier said:
Whatever rubbish is put up as an excuse the simple fact is that oil is traded in $ and yet the $ has collapsed against the €. Why have we not seen this reality reflected in fuel prices?
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We have. Fuel prices (net of the very high tax component therein) have not moved upwards in correlation with the fall of the dollar.
 
shnaek said:
It is amazing that it has gone from being 10 cent cheaper to 10 cent dearer in the space of months. I was the ejit who bought a diesel last year so I'm being screwed every way!!
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yeah the implementation of the new vrt and road tax schemes is a total disaster for you (not to mention illogical), however at least you're getting a lot more miles to your gallon of diesel.
 
The changes in the price of diesel over recent months have just proved to me that price fixing exists in the Irish forecourts.

A couple of days ago, within 15 miles of each other in Donegal, I saw one petrol station where diesel was 8c per litre LESS than unleaded, yet another where it was 9c MORE than unleaded.

For years before diesel was ALWAYS less than unleaded. ALWAYS.
 
Glenbhoy said:
yeah the implementation of the new vrt and road tax schemes is a total disaster for you (not to mention illogical), however at least you're getting a lot more miles to your gallon of diesel.
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That is true - it is amazing how much more efficient diesel is alright.

On the other hand - I wonder can I sell my car to myself after June, and thus take advantage of the new road tax scheme - or does it only apply to brand new vehicles?
 
shnaek said:
That is true - it is amazing how much more efficient diesel is alright.

On the other hand - I wonder can I sell my car to myself after June, and thus take advantage of the new road tax scheme - or does it only apply to brand new vehicles?
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Nah, unfortunately as it currently stands the new road tax rates will only be applicable to cars registered for the first time in this country after July 1st 2008, ie all new cars and second hand imports.
 
RMCF said:
The changes in the price of diesel over recent months have just proved to me that price fixing exists in the Irish forecourts.

A couple of days ago, within 15 miles of each other in Donegal, I saw one petrol station where diesel was 8c per litre LESS than unleaded, yet another where it was 9c MORE than unleaded.

For years before diesel was ALWAYS less than unleaded. ALWAYS.
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How does this prove price-fixing? I would have thought that price-fixing would mean that prices are the same (or very similar) everywhere. Significant variations in prices between two outlets would suggest the exact opposite, ie that one guy has cut his diesel price to the bone to generate custom and another guy has done the same in respect of his petrol price.
 
ubiquitous said:
How does this prove price-fixing? I would have thought that price-fixing would mean that prices are the same (or very similar) everywhere. Significant variations in prices between two outlets would suggest the exact opposite, ie that one guy has cut his diesel price to the bone to generate custom and another guy has done the same in respect of his petrol price.
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What I've noticed in border filling stations is that their prices are normally pretty similar, but that the further one gets from the border, the lower the price - interesting, isn't it.
 
Glenbhoy said:
What I've noticed in border filling stations is that their prices are normally pretty similar, but that the further one gets from the border, the lower the price - interesting, isn't it.
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This is a fact of life and reflects the willingness of northerners to pay relatively higher prices here as these will still be way cheaper than what they are paying north of the border. The exact opposite phenomenon happened in the 1980s when fuel was cheaper in the north than the south.

It still doesn't prove price-fixing. If you are running a filling station and your nearest competitor is charging a very high prices, then it might make sense for you to undercut him slightly. It won't pay you to cut prices to the bone.

One issue that many people miss in such discussions is the tendency nowadays for one entity to own multiple filling stations. For example, 3 of the top 4 filling stations around Cavan town are owned by one individual. In such a scenario, it is easy for an owner to legally squeeze maximum profits out of several outlets by setting similar prices at each one, without having ever to illegally fix prices with other operators.
 
ubiquitous said:
It still doesn't prove price-fixing. If you are running a filling station and your nearest competitor is charging a very high prices, then it might make sense for you to undercut him slightly. It won't pay you to cut prices to the bone.
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That is what one would expect alright, the reality is, it doesn't happen - proximity to the border means that there is plenty of business to keep everyone happy. I don't have a problem with it myself, I won't buy my diesel there as I know I'll get it cheaper in Dublin, others travelling from the north are quite to happy to pay the price as it's still a significant saving for them.
Whilst cartels may be illegal there appears to be a tacit understanding in many industries that competition should be non-price.

I heard a lady who owns one of the stations on a radio programme justify the price discrepancy (which can be over 10c per litre) by saying that they provide attendants (neglecting to point out that the attendants are employed to ensure efficient throughput of the queues coming over the border).
 
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