[Kerr]

http://www.bbc.co.uk/news/uk-16702584

With diesel prices already moving way ahead of petrol, here comes another reason to accelerate that.

[Mart1000]

There's always gonna be a 'crisis' somewhere so that those thieving bastards can fleece more money out of us.

[JJD]

I thought operating a refinery would have been a license to print money. How the fk did it go bust...

[creepy coupe]

Originally Posted by JJD

I thought operating a refinery would have been a license to print money. How the fk did it go bust...

Some old bollocks about that refinery being gear to petrol and the demand is now diesel.

Together with Iran plans to block oil through the Strait of Hormuz. It can only go one way IMO

[Kerr]

It's a private refinery so they only make the money from refining which is not that high.

They still have to buy the oil in the first place and that's where the money is.

As I've posted for long enough, there is too much petrol being produced to meet diesel demands and diesel has to be bought from other more expensive sources.

Supply and demand effect will see the continual acceleration of diesel prices.

[IanS100]

If it was geared to producing petrol why would the price of diesel soar as opposed to the price of petrol?

[creepy coupe]

Originally Posted by IanS100

If it was geared to producing petrol why would the price of diesel soar as opposed to the price of petrol?

There is a general over supply of petrol at the moment.

[Falmouthboy]

There is no doubt that this will be used as an 'excuse' to put up prices. The UK has a 2 month stock of fuel, and as has been said, there was not enough demand for their product, so it will be just that - an 'excuse'.

Lets just hope the government doesn't let them get away with a price hike on unjustified grounds.

[nicktyler]

Thats the point. If they went bust because there was not enough demand for their product then how is there going to be a crisis and a shortage of their product? They went bust because nobody wanted it in the first place.

How does that make sense? The only reason for a sudden increase in demand would be the media paniking everybody to buy fuel.

[Kerr]

Originally Posted by nicktyler

Thats the point. If they went bust because there was not enough demand for their product then how is there going to be a crisis and a shortage of their product? They went bust because nobody wanted it in the first place.

How does that make sense? The only reason for a sudden increase in demand would be the media paniking everybody to buy fuel.

From crude oil you get 40% petrol to 23% diesel.

To produce enough diesel you have to buy far more expensive crude oil and you are left with far more petrol than you need.

More and more diesel is being sourced from abroad pushing the cost up. Now other countries are using more too, so they have less to sell us pushing the cost up and this will only get worse.

Losing one of the UK refineries will also have an impact.

[mowflow]

So are you telling me my next car should be petrol? If so then this is the best news I've heard in ages.

[Kerr]

Originally Posted by mowflow

So are you telling me my next car should be petrol? If so then this is the best news I've heard in ages.

Make it an M3 just to be safe.

[CarAbuser]

If diesel spikes then haulage costs will rise along which means everything else rises.

[Mr Singh]

Looks like my car will be the last diesel I own then lol

[foxy-stoat]

It wont be long before the cost per mile will be the same for diesel and petrol.

At the moment I tend to get around 575 miles to £84.00 (320d remapped), if diesel prices go up then this will effect the pence per mile, assuming an average of low 40's mpg:

£1.40/ltr = £0.15 per mile
£1.50/ltr = £0.16 per mile
£1.60/ltr = £0.17 per mile
£1.70/ltr = £0.18 per mile
£1.80/ltr = £0.19 per mile
£1.90/ltr = £0.20 per mile
£2.00/ltr = £0.21 per mile

I used to get around £0.24 per mile 7 years ago out of my E36 325i petrol but cant remember the cost of unleaded back then....

[m1bjr]

+1

Wondered why the inlaws just bought a new 320i last night!

And when all cars go electrric, watch the price per kW hour jump up at home.
All very predictable. Revenue lost in one area suplemented by raises in another similar area.

[foxy-stoat]

^^ Agreed...wondering if everyone in the UK sold their cars and bought only the lowest tax group, the cheapest to run and group 1 or 2 insurance cars, I wonder how much car tax revenue, VAT on fuel and insurance tax would be lost and how best to recop theie losses.

They dont want people to drive cheaper to run no road tax cars anymore than any self respectable petrolhead does! They will keep raising the cost of motoring as much as the normal folk can afford to pay/get into debt over.

Good to know the sums involved tho.

[Subzero2003]

Originally Posted by foxy-stoat

^^ Agreed...wondering if everyone in the UK sold their cars and bought only the lowest tax group, the cheapest to run, I wonder how much car tax revenue, VAT on fuel and insurance tax would be lost and how best to recop theie losses.

I was thinking about this the other day, and the only thing i could think that would happen is that the car tax system would change again.

With BMW and other manufacturers now getting VERY good at reducing their CO2 figures and increasing efficiency (a new 335i only costs like gives out like 195g/km CO2 and costs £210 to tax these days, whereas my 5 year old one costs a whopping £445 and gives out 228g/km) with every new model it comes out with, it's only going to be a matter of time before this loss in revenue for the government will mean they have to either change the VED bands again (NOOOOOOOO - i already pay £445!!!) or start whacking up the tax on fuel (yes, even more ).

[parapaul]

Originally Posted by m1bjr

And when all cars go electrric, watch the price per kW hour jump up at home.
All very predictable. Revenue lost in one area suplemented by raises in another similar area.

I've wondered this for a while. It's inevitable. Can anyone (older than me ) remember how long it took for diesel prices to climb once it became a popular alternative to petrol?

[acerboo]

Originally Posted by Kerr

It's a private refinery so they only make the money from refining which is not that high.

They still have to buy the oil in the first place and that's where the money is.

As I've posted for long enough, there is too much petrol being produced to meet diesel demands and diesel has to be bought from other more expensive sources.

Supply and demand effect will see the continual acceleration of diesel prices.

so why is it still a £1 a gallon cheaper in france TAX!

[Kerr]

Originally Posted by acerboo

so why is it still a £1 a gallon cheaper in france TAX!

Petrol and diesel have exactly the same duty added here in the UK.

[Carrera RSR]

There's been a 15% drop in fuel purchased since 2008. Which is if I remember correctly is circa 1 billion litres less being used per annum. Work out the tax deficit of that!!