petrol and diesel prices

L

levelpar

Registered User
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Many years ago diesel was cheaper than petrol. Someone said diesel being a cruder oil was cheaper because petrol required more refining.
Anyway, I saw diesel fuel being sold at 8 cent a litre dearer than petrol.

I wonder are the petrol stations gearing up for a bonanza when from July the motor trade expect a jump in the sale of diesel cars
 
Many years ago there were less diesel cars on the roads.

Diesel engines have come on leaps and bound since many years ago therefore diesel is in more demand than many years ago.

Diesel is also more expensive during the winter in the northern hemisphere.

All this together with the fact that diesel has a higher rate of duty than unleaded gives you your price difference.
 
[Many years ago there were less diesel cars on the roads.
Diesel engines have come on leaps and bound since many years ago therefore diesel is in more demand than many years ago.
Click to expand...

What has this got to do with prices unless you mean that its ok to increase prices when there is a demand
 
levelpar said:
What has this got to do with prices unless you mean that its ok to increase prices when there is a demand
Click to expand...
The ratio of worldwide demand and production of diesel hasn't remained constant since many years ago, demand has increase at a higher rate than production therefore the price has increased.

In my own opinion price increases are justified when demand is increased at the higher rate than production. Simple business sense there.

Just to add to my earlier response diesel is now becoming more expensive to produce than petrol due to stricter controls on the quality of diesel in relation to it's Co2 emissions per liter of fuel burned. Check out the EU directives on diesel.

The interesting thing is that our friends in the EU are currently trying to harmonise tax on diesel across all member states which would bring the lower taxing member states up to a minimum level (on par with petrol, then higher then petrol by 2012) but allow members states like Ireland who already have tax at a higher than minimum level to leave the current tax level in place. The idea being harmonisiation between all member states sooner or later to prevent what the EU say it 'tank tourism' such as what we've seen around the border. Of course if it generates extra revenue for the EU then thats just a coincidence.
 
If Diesel is more refined now surely the duty should be lowered on this cleaner greener fuel.

Simple economics,

Driving a private car is a luxury beacause of the excellent public transport
Motorist is a cash cow

Screw the motorist for every cent possible while having the use of a free misterial executive car.
 

The tax/duty on diesel is cheaper than petrol, the petrol stations are engaged in? Well I think the figures speak for themselves!

From Revenues web site on the 12 February 2008

http://www.revenue.ie/index.htm?/publications/corppubs/cross_border_comp_feb08.htm


Total tax/duty on 1 litre of Unleaded Petrol at €1.17 is 65 cents

Total tax/duty on 1 litre of Diesel at €1.18 is 57 cents


Rates of Duty on Light Oil:

Leaded petrol €553.04 per 1,000 litres

Unleaded petrol €442.68 per 1,000 litres

Super unleaded petrol €547.79 per 1,000 litres


Rates of Duty on Heavy Oil:

Diesel €368.05 per 1,000 litres

The forecourts are raking in extra profits on diesel! In my opinion aided and abetted by the Min of the Environment, John Gormleys ill thought out Vrt/Motor tax adjustments
 
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Right so I was out with the rates of duty (God knows where I read them from)

My other points still stand and to be honest make better reasoning than your unfounded thoughts. There is a simple supply and demand issue pushing up prices together with increased production costs due to EU directives on environmental issues on the quality of the diesel.

The idea that garages are trying to take advantage of increased diesel consumption is a very simplistic view - foundation level junior cert economics.
 
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