I tried to do some research on this but could get no clear answer. According to http://www.petrolprices.com/the-price-of-fuel.html the tax on both is the same at 80.1p per litre (Duty plus VAT).
The difference is the price charged by the oil company, and the best explanation I can find runs along the lines that petrol benefits more from economy of scale. Diesel has to compete with heating oil for production time in the refinery and that adds costs.
My reading of it is that the oil companies charge more for diesel because they can. Motorists believe that they are still getting a good deal because they use less in a diesel. Simple arithmetic should show them that this is a false economy for most, as the higher initial cost and the higher maintenance cost, together with the increased chance of a breakdown outweigh any savings.
Last edited by Santa; 09-05-14 at 19:15.
Santa, you do surprise me that you regard diesel engines as being more prone to breakdown. I would have thought that, based on the laws of average, the chances were about equal for both diesel and petrol.
Look at all the posts by people whose filters are clogged and the engine gone into limp home mode.
I have no idea if this post will get through as last couple haven't.
Last weekend went down to a rally in Kielder and cheapest (non-supermarket, but A road fuel was £1.379) in Earlston and Jedburgh. That compares reasonably okay with our current £1.409 for diesel on island when cost of getting fuel to island is 3p per litre. I'm quite capable of understanding the economies of scale but this is one of the issues that tend not to be understood by many. As an island, our fishing (in particular) and livestock provide a very healthy export profit for the country as a whole. However, as our costs rise, the ability to do so falls and if we can't afford to get about, then firms start to go under. Economics was one of the reasons that the 5p fuel derogation was brought in for the islands and why other remote areas across the UK are being considered in an expansion of the scheme - albeit I don't agree with the postcode lottery element on that!