Can anyone tell me why petrol prices are going up & up to the extent that unleaded & diesel are the same price and in some places diesel is cheaper than unleaded? Hasn't diesel always been more costly than u/leaded? It's not bothered me too much past few weeks as I've been driving a (diesel) hire car organised by my job and they're paying for my fuel but I'll be back behind the wheel of my own little unleaded petrol car next week....
Ethel's right.
Up to the start of the nineties, diesel used to be about 2/3 the price of petrol - that was why diesel cars were so economical to run, provided you did not mind the sluggish performance.
When turbo diesels started appearing in the mid nineties, people were attracted by the economy of diesel, coupled with exceptional performance.......... until the powers that be cottoned on to this and hiked the price of diesel to rake in more money from us.
Petrol, especially unleaded, is more expensive to produce than diesel. Diesel was cheaper until the late 80s. Then in order to encourage the use of unleaded petrol the rate of tax compared to that on diesel was reduced. Nothing to do with turbodiesel in the 90s.
The production costs of fuel have ******-all to do with how much you and I pay at the pumps.
I seem to remember that production costs are about 25%, profit is about 5% for the retailer and the manufacturer each and the remaining 65% is duty and VAT.