Why is diesel fuel more expensive that unleaded petrol?

[DieselOwner]

I understand that diesel is produced earlier in the refining process than petrol so takes less energy to produce. Also am I wrong in thinking that more diesel fuel is sold than pertol so with economy of scale it should be cheaper? Is it threfore that the duty is greater?

[jake-the-peg]

I believe diesel is a higher polluter and is therefore taxed higher.

but in general the price you pay for anything these days is fixed by calulating the maximum profit and bears little relation to the cost of production.

[Gef]

As far as I know diesel costs less to produce than unleaded petrol. However, in the late eighties when the government was encouraging the change over to unleaded from leaded (which cost less to produce) they reduced the tax on unleaded. I think that this is still the case.

[d0gsb0dy]

It's the old story. Diesel was cheap when demand was low. Now it's popular, up goes the price. This would also happen to LPG if it ever took off.

[Electrochem]

There is an argument that says that diesel fueled vehicles cause more pollution than petrol fuelled cars, mainly due to the particulate matter.

Diesel fuel is cheaper to produce than petrol, but the refineries are unable to cope with the demand at present.

We should and could have better fuels, but the oil companies are afraid of losing their profits and the government just kowtows to them.

[garthfan1061]

I recently read this article: http://www.washingtonpost.com/wp-dyn/content/a rticle/2005/08/07/AR2005080700888.html

-very informative and insightful!