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The Forum > General Discussion > Why is DIESEL more expensive than Petrol?

Why is DIESEL more expensive than Petrol?

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This never ceases to fascinate me.

FACTS.

1/ Petrol is more highly refined than diesel.
2/ Thus one can say 'producing diesel is cheaper than producing petrol.

Hence the question..

WHYYYYY do we get charged 15% or there abouts MORE for Diesel?

I'd love to know the answer to this..and I'm sure a lot of truckies would also!

Those who have more 'facts' to throw in.. please do so.
Posted by BOAZ_David, Tuesday, 17 June 2008 10:18:19 AM
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Becuase more and more people are starting to use it and the milage you get from diesel is better, I believe.

The term I think is, 'cash cow'.
Posted by StG, Tuesday, 17 June 2008 10:33:12 AM
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Boazy, as the owner of a diesel-powered truck, I've asked the same question. The answer I usually get is that it's because all of Australia's diesel fuel is imported, whereas we refine much of our own petrol.

Mind you, who knows whether that's really the reason... I can recall a time not too long ago when diesel was always cheaper than petrol.
Posted by CJ Morgan, Tuesday, 17 June 2008 10:33:12 AM
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Good Morning David,

I agree with STG. There's a higher tax on diesel because more people use it. A diesel powered engine is more efficient than a petrol run equivalent - you get more miles per gallon, so it's more economical in the long run, even though its more expensive per litre.

You may be interested in the following website:

http://www.petrolprices.com/why-diesel-costs-more-than-petrol.html
Posted by Foxy, Tuesday, 17 June 2008 11:07:20 AM
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Dear folks..
since I began the thread I did some more research and found that due to new emmission requirements calling for 'VLS' (very low sulphur)content and ULC (ULTRA LOW) .. the refining process is in fact more costly!

What I've not discovered yet is whether this applies to the Australian situation.. as the emmission regs are EU.

If they DON'T apply rigidly to us, then the situation is immoral to say the least.

Surprised? Me too..

I recommend anyone interested in more detail explore this.

Apparently it also depends on the quality of the crude.. as to how much more expensive the refining is.

So.. on the surface the refining is lower... but due to emission standards.. it requires more special treatment.

As for cash cow.. and taxes.. well I was already hyper cynical of governments and there is nothing to convert me to there :) but yes..I tend to agree.

Some figures would be welcome.

Let's SHAME em.

QUESTIONS to explore

1/ Are we in Australia subject to the rigid emission VLS ULS regs?
2/ If not.. WHY the (multiple relatively benign expletives:) are we being charged for diesel as if they DID apply?

*puts on the black attire and combat boots* :)
Posted by BOAZ_David, Tuesday, 17 June 2008 12:20:27 PM
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Low sulphur content regulations (50ppm) do apply in Australia and have for some time now.

http://www.racq.com.au/cps/rde/xchg/racq_cms_production/hs.xsl/Motoring_Maint_Repairs_Foun_factsheet_low_sulphur_diesel_ENA_HTML.htm

Also, Australia is going to be going to 10ppm sulphur (Ultra-low) by January 2009, so you can expect the refining to get more expensive I guess.
Posted by Bugsy, Tuesday, 17 June 2008 12:32:10 PM
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