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Diesel Prices...

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  • 06-04-2008 9:49pm
    #1
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭


    Noticed lately that Diesel is more expensive than Petrol in most stations these days. Average price of Diesel is 7c more expensive than Petrol according to this site. This is the opposite of how I have always remembered prices to be. I also remember reading in The Evening Herald (bastion of fine reporting I know :rolleyes:) that duty on Diesel was lower and hence prices should be lower, was another episode in rip off Ireland etc.

    Just wondering is this true, i.e. is it just another excuse for a rip off seeing as diesel cars are more popular these days or is there another reason for the price differential?


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    #2
    tippbhoy
    Closed Accounts Posts: 171 ✭✭tippbhoy


    Colonel Sanders wrote: »
    Noticed lately that Diesel is more expensive than Petrol in most stations these days. Average price of Diesel is 7c more expensive than Petrol according to this site. This is the opposite of how I have always remembered prices to be. I also remember reading in The Evening Herald (bastion of fine reporting I know :rolleyes:) that duty on Diesel was lower and hence prices should be lower, was another episode in rip off Ireland etc.

    Just wondering is this true, i.e. is it just another excuse for a rip off seeing as diesel cars are more popular these days or is there another reason for the price differential?


    Tell me about it, sickening the last few weeks. In the space of a week Diesel went from being about 1/2 cent cheaper to 5/c cent dearer. My work puts me in contact with a lot of forecourt owners and i've asked 4 or 5 of them and they don't know the reason. Personally, I reckon it is to do with raising prices in anticipation of the major switch to Diesel after July to make sure the oil companies keep their profits by bringing it in through stealth now. I have heard a few arguments that Diesel is in peak demand towards the end of the winter but i think that's BS myself, we're well into Spring. And to the best of my knowledge like you said it is cheaper in duty as well. The guys over in Motors forum had a bit of a chat about this but no conclusive answers to any sort of a justification.


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    #3
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    Must say my suspicion was that with diesel cars being ever more popular it was just the usual rip off tactic as I often noticed that in rural towns and villages the price of diesel was more expensive in years gone by (most rural dwellers I know have diesel cars rather than petrol and often gave out about this practise) but these days its more expensive everywhere.


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    #4
    antoinolachtnai
    Registered Users Posts: 9,793 ✭✭✭antoinolachtnai


    As I understand it, it's related to market conditions, principally the availability of refining capacity. I understand that things like military operations can impact heavily on the cost of diesel. If the military decide to top up their reserves, that hits the world markets. I don't know if this is currently happening, but it has certainly happened in the past.

    You can keep an eye on the global diesel market here. There isn't a commodity market in motor diesel, but I believe that the price fluctuates in line with home heating oil which is basically the same thing. Have a look at

    http://www.detroitgasprices.com/homeoil_chart.aspx


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    #5
    kittensoft1984
    Closed Accounts Posts: 1,124 ✭✭✭kittensoft1984


    antoinolachtnai wrote: »
    As I understand it, it's related to market conditions, principally the availability of refining capacity. I understand that things like military operations can impact heavily on the cost of diesel. If the military decide to top up their reserves, that hits the world markets. I don't know if this is currently happening, but it has certainly happened in the past.

    You can keep an eye on the global diesel market here. There isn't a commodity market in motor diesel, but I believe that the price fluctuates in line with home heating oil which is basically the same thing. Have a look at

    http://www.detroitgasprices.com/homeoil_chart.aspx

    This is true. I work in the industry and our prices have gone through the roof in the last while. Its something to do with the US and Venezuala (and not im not kidding). Huge rows going on at the moment which is driving Diesel up. its not too and now at 123 in most places compared to 128 last week and the week before!


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    #6
    mcaul
    Closed Accounts Posts: 1,493 ✭✭✭mcaul


    Generally you can get an idea of how the price will go by keeping an eye on the world oil prices - currently $108. Luckily for us the weak dollar has stopped the price rise being even higher. This is priced into the Irish marjket about 2 weeks later and new prices are set very Tuesday.

    Expect 2 - 3 cent reduction in Petrol this week, but diesel will remain as is due to refineries charging a premium. - This affects every country in the world and is not specific to Ireland.

    To cheer you up though...In Cookstown, Co. Tyrone yesterday Petrol was 115.9 sterling per litre and diesel was 128.9 per litre.


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    #7
    tippbhoy
    Closed Accounts Posts: 171 ✭✭tippbhoy


    mcaul wrote: »

    To cheer you up though...In Cookstown, Co. Tyrone yesterday Petrol was 115.9 sterling per litre and diesel was 128.9 per litre.

    Not sure how that is supposed to cheer me up, the UK have a different tax structure, motor tax is much less than here and no VRT. the fuel has always been higher.

    The argument that it is related to the cost of crude doesn't stand to reason with me. If crude goes up, then so too should both petrol and diesel proportionally and this hasn't happened. This is not a rant on the cost of diesel, it is about diesel costing more than petrol as a whole all of a sudden. There must be a reason, has diesel increased in world prices recently by more than petrol?


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    #8
    antoinolachtnai
    Registered Users Posts: 9,793 ✭✭✭antoinolachtnai


    It's not related to the price of crude alone. It's related to refinery capacity and demand.

    Yes, as I understand it, diesel/heating oil has increased more than petrol.


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    #9
    Del2005
    Registered Users Posts: 18,990 ✭✭✭✭Del2005


    tippbhoy wrote: »
    Not sure how that is supposed to cheer me up, the UK have a different tax structure, motor tax is much less than here and no VRT. the fuel has always been higher.

    The argument that it is related to the cost of crude doesn't stand to reason with me. If crude goes up, then so too should both petrol and diesel proportionally and this hasn't happened. This is not a rant on the cost of diesel, it is about diesel costing more than petrol as a whole all of a sudden. There must be a reason, has diesel increased in world prices recently by more than petrol?

    AFAIK diesel is harder to produce then petrol and all the refinerys are constrained. They can only process so much crude oil. As Mcaul said, the price of crude goes up then everything made from it goes up, since diesel is harder to make then it's price goes up more.


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