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Fuel Prices

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Kos | 15:53 Thu 21st Oct 2004 | News
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Could somebody please explain as to why, in the current round of fuel price rises, the cost of Diesel is increasing at twice the rate of Unleaded? A couple of weeks ago, Diesel and Unleaded were roughly the same price. Now Diesel is on average 3-4p a litre more expensive. Hidden Government Tax rise??
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Maybe the oil company, fearing the public backlash to fuel price rises, have only upped the petrol a litte and recouped a lot as there is a lot of that sold and upped the diesel a lot as there is not so much sold. The net result is that the diesel customer subsidises the petrol customer not getting such a headline raising price hike.

 

Or am I being cynical?

 

A bit of a guess here, but I will try. I think the rate of duty on diesel is lower than that on petrol. So consequently a greater proportion of the final price is linked to the price of oil. So an increase in oil prices causes a disproportionate rise in diesel prices.

Something in the manufacturing process makes diesel more sensitive to price rises apparently. Same for super unleaded/optimax too. There is no question that it is too high though. We're close to fuel crisis of 2000 levels are we not?
yes it is about the same as the crisis levels if not greater? Why are americans moaning about the price of their fuel, isn't it something like a quarter of the price of ours?
Americans are moaning because the price is high, much higher than a few years ago. In fact the increase there is probably more than in the UK. Why should they feel better about it just because we pay times as much? Anyway we are more used to being ripped off.

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