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Is diesel dead? interesting artical

hatab

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source uk.msn.com

Is diesel dead?

June 18 2008
Last month, diesel prices rose by their highest margin this century. Don't we all know it.

You can't fail to have noticed the horrendous price of diesel. Or how the gap seems to be rising by the day.

Today, it is 115.9p for petrol... a sickening 130.9p for diesel. But they will be out of date the moment this piece goes live. It is a ridiculous situation.


Work out the fuel cost for any journey

Our Peugeot 308 dieselParticularly as many, just like me, went for diesel to save money on fuel. I had a choice of engine with my 308 long-termer - and, as a high-mileage driver, I naturally chose diesel. It was a no-brainer back late last year, when I was making my decision.

Now, though, I've had enough. I've had one £25 daily fill too much. I'm starting to think diesel has had it. I am even - shock, horror - thinking I should re-embrace petrol. And if you think this is just me throwing a paddy because I'm skint, well, you'd be right.


Why's diesel so dear?

Current BP pricesOnly in February, diesel was selling for 109p. That represented a 5p premium over petrol. Fair enough - the additional economy compensated for it. That was before process started their inexorable rise. Today, the UK has the second-highest diesel prices in Europe. The difference is over 11p - per litre. That's over 50p per gallon!

Last month alone, while petrol prices rose by 4.5p per litre (in itself frightening), diesel outdid them by rising by 6.8p per litre. In short, diesel prices are rocketing at twice the speed of petrol prices. And the stretching gap shows no signs of abating. What's causing it? We've yet to get a straight answer.



Diesel is popular but dearA lack of refining capacity is often blamed. OK, diesel sales have risen massively over the years. But what on earth, then, are fuel companies doing with the gigantic profits we're paying through the nose for? Surely, building more refining capacity? It's little short of scandalous that such an excuse can be levelled.

But of course, the rising cost of oil is also a cause (if not the cause of the gap between diesel and petrol). Here, too, it's baffling. There is no shortage. Demand from developing nations actually levelled last year. But still prices rise. Blame speculators and hedge funds, whisper the experts. Oh, if I could meet them...


Is diesel really dead? Let us know on the Message Boards
Diesel drives the nation

Diesel drives the nationAnd don't think it's just me that's suffering. This has serious implications for the nation as a whole, too. Trucks, which deliver to supermarkets, run on diesel. Trains run on diesel. Taxis? Diesel. Tractors? Diesel. Post Office vans? Diesel. By how much are relatively stable inflation rates threatened by these escalating DERV prices?

Hold in if you've had it and want to sell your diesel, too. They currently carry a premium over petrol models reflecting the higher purchase price. But, say Glass's, while there is nothing to suggest prices are falling faster, the financial argument for diesel is becoming less persuasive.



High-milers onlyAn average family three-year old diesel is up to £800 dearer than a petrol, yet the annual fuel bill is only £105 less. This means you must keep it for SEVEN YEARS before lower fuel bills compensate for the higher price. What's to say buyers, realising this, will simply mark diesels down, increasing their depreciation?

This is a major issue for models that can cost over £1,000 more than an equivalent petrol when new. Who keeps their car for 10 years, anyway? They way things stand at the moment, diesel just doesn't add up. Dealers are already reporting that turbodiesel fever has turned into a clamour for 1.6 petrols.


Get ready to pay more

Diesel is getting dearerAnd if you thought all that was lunacy, throw in idiocy, too. The Government, at the moment, has a further 2p per litre hike in diesel prices tabled for this autumn. For many, this really will be the back-breaking straw. When you're spending so much on fuel, you buy on cost to fill, not fuel economy.

The fact is, diesel now costs disproportionately more. I drove a turbocharged petrol 308 and compared it to my diesel model: account for equivalency on costs and the petrol didn't beat it, but it was close. Had I driven the more comparable non-turbo version. I'm sure by now it would be the cheaper model to run. And £1,200 cheaper to buy.



Petrol might be the way forwardMuch as I love the torque, the punch, the refinement and big-engine mannerisms of modern diesels, the relaxed drive they offer just isn't matched by the feeling when you crunch the numbers. I've been the biggest fan of the fuel over the years, but take a financial snapshot and it's never been worse.

No, with their higher purchase price and rising cost to fill when compared with petrol, diesel at the moment is dying for many models of car. So what to do, for my next long-termer? I chose here diesel to save money, and it's ended up costing me a packet. The way things are going, will it be a mistake for me to do the same again?
 

maarksparky

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totally agree with you bigman.. great post.. I just think this credit crunch, rising fuel prices etc is man made balloon by super power for what ever interests they have to control world economy..

we all know.. britain and usa have thier fuel prices fixed for 10 years at $50 a barrell yet, rising fuel prices what a joke..

hatab you are right about the petrol being cheaper.. to be honest, if this carries on I will move to a petrol car which in many ways is cheaper to run..

I think its pathetic that the nation is going through this.. I feel for the folk who struggle until payday (including myself) my tank usually fills up for £60. I got it filled this morning and it was £76 what a joke..
 

smirnoff_rules

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#3
its killing the motor trade aswell and even down to garden centers where people would go out for a drive on a sunday ,, there not now because a drive out now is for the rich
 

The Dentist

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#6
Last week i switched my petrol car for a diesal.

i've saved 40 quid on fuel!

altho diesal is rediculously expensive.

i dont see this ever going down unless some kind of miracle happens.
 

english

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#8
put chip fat in if u can thats probs why its gone up so much, it seems a lot more ppl know about this now. they were even talking about filtering old chip fat oil with tights on local radio the other day to use as fuel
 

smirnoff_rules

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#10
and u need a tanks and fittings ... cheaper to get a old converted taxi .. alot l know went back to diesel the conventions r crap for overheating the engine blocks
 

ScarecrowDR

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Well I shall REPEAT what I have said Before..Get Wise Folks, Stop Complaining and do this--
LEAVE your VEHICLE at HOME for 2 days and tell Brown to Drop the Price or we stay home another two days...I Bet you price will drop in no time because country will lose TRILLIONS..
STOP Moaning that you can't afford to lose two days wages, because you are Loseing MORE than that Now...GET WISE!
 

nohidingplace

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there appears to be less vehicles on the road anyone noticed this?.Diesel and Petrol may still be rising but it is still cheaper than public transport e.g our Metro line up here is around £1.80p return, journey time 8mins,2 on the metro £3.60 return, diesel £1.32 litre get around 10miles per litre I live 3 miles from town even with parking it still wins.
 
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#14
I dont see a reduction where I am. And public transport is dead cheap here - £2.50 for a day ticket on a bus that will take you anywhere in the city..