went to my usual shell garage in Willerby to find out that Diesel has gone up 4p in a day. Anyone else noticed it going up so dramatically?
If it gets any dearer i will be getting myself a horse, fuel prices worldwide have dropped in recent months but not at the pumps.
Maybe something to do with the situation in Iran, they're on about blockading a strait on their coastline where 20% of the world's oil passes through. Seen as Europe has decided to put sanctions on buying their oil.
The justification as I understand it is that for any barrel of crude oil, the fractions of petrol, diesel etc are fairly uniform, with diesel being a smaller percentage. The increase in the number of diesel cars means that supply is not keeping pace with demand so diesel has to be cracked from other fractions of crude oil and this is more expensive. It could be total bollocks and doesn't explain why it's not the same in say France. Although it's argued the French keep the price down to get people topping up when passing through and therefore increase their tax revenue. Unless you're doing high mileage, there's no real savings on buying diesel over petrol cars now.
It'll be anticipation of oil price increases due to the reduced supply once we enforce the embargo on Iranian oil exports and the further reduction when they put the blockade in place. I don't know what's happened to the £/$ rate but even with a falling oil price it could result in more expensive fuel if the pound has weakened. (although if oil has dropped its $/barrel price I'd imagine the dollar is strengthening so you'd need a combination of the two) It could also be awareness of Petroplus filing for bankruptcy, because they're talking about some refinery down south potentially closing as a result (administrators are prioritising keeping it open as long as they can), which would affect supply of diesel within the UK. http://www.bbc.co.uk/news/uk-16702584
