Diesel drops 5p a litre overnight

Soldato
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26 May 2009
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22,100
There robbing ******* where I live, as its only dropped 1p :(

I was at clay cross on monday and at tesco it's 141.9 there. I live by bramall lane and it's 148.9 here.

The petrol doesn't transport itself from the refinery to the station so the further it will be the more the cost to the consumer can be reduced due to reductions in product cost and delivery cost, some stations may also have been selling it at cost in the first place (hoping to make money from in store purchases whereas other make profit (and some supermarkets allegedly sell at a loss to encourage shoppers) so you can't really compare prices between two stations and claim a ripoff
 
Man of Honour
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17 Oct 2002
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159,534
The current fuel price drop is a loss leader by supermarkets to appear like the amazing champions of the consumer they like to pretend they are.

In reality crude oil is bought on a futures market - for delivery in the future. It is quite true that Brent Crude for delivery in June is now some $15 off highs of just over a week ago. But it's not even been delivered to the refinery yet let alone refined into petrol and delivered to the retailer. The fuel they are selling now was produced using more expensive crude.

If, and I say IF because I think its very unlikely, these lower oil prices are sustained for a few weeks, you should began to see reductions across the board towards the end of next month. Anything sooner is marketing, but to be honest once the market recovers from this blip we'll be crying about 140p a litre fuel again.
 
Don
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18 Oct 2002
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Wargrave, UK
I just paid 140.9 for diesel at an Esso station in Bracknell. That was just to top the courtesy car up.
I noticed that the price of petrol there was unchanged though at 135.9
 
Man of Honour
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17 Oct 2002
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The price drops by the supermarkets are confusing - they've slashed 4p or so off diesel bringing it to just 1p above petrol. Now i'm unaware of anything that would cause a fall in wholesale diesel and not petrol, so is this simply for maximum 'wow, the supermarkets are great' effect, given it's diesel which was the most expensive?

As none of them are benefitting from the oil price drop yet as they'll not be buying refined fuel made from the cheaper oil!
 
Man of Honour
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17 Oct 2002
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The problem with diesel is, as I understand it, that they are horrible ratt... no wait wrong rant :D the problem with diesel is that it is a byproduct of the petrol production process, so you cant make more diesel without making more petrol, which is why the price difference began to grow when demand grew for diesel - to make more diesel meant making even more petrol, which often wasn't possible.

I don't think this has changed?

I think its about time the government recognised the health issues caused by the high levels of pollutants in diesel and taxed it significantly more to encourage people to drive cleaner petrol cars, but that would involve giving up the curious opinion that all that matters is CO2 ;)
 
Soldato
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Somerset
[TW]Fox;19121656 said:
I think its about time the government recognised the health issues caused by the high levels of pollutants in diesel and taxed it significantly more to encourage people to drive cleaner petrol cars, but that would involve giving up the curious opinion that all that matters is CO2 ;)

I concurr, add in the horrific noise pollution aswell which I'm sure can be taxed!
 
Caporegime
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21 Oct 2002
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26,251
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Here
Direct injection gasolines are no better than diesel for PM, infact the PM matter is smaller so penetrates deeper into the lungs.

EURO6 may call for GPFs to be fitted to gasolines
 
Soldato
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18 Oct 2002
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5,730
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Birmingham
[TW]Fox;19121656 said:
The problem with diesel is, as I understand it, that they are horrible ratt... no wait wrong rant :D the problem with diesel is that it is a byproduct of the petrol production process, so you cant make more diesel without making more petrol, which is why the price difference began to grow when demand grew for diesel - to make more diesel meant making even more petrol, which often wasn't possible.

I don't think this has changed?

That is also true, and would justify the assymetry of the prices at that time. However surely now, two years later, with a majority of new cars still being diesel there would be even more surplus petrol and an even bigger gap in price? Unless petrol users are now being had of course?
 
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